February 11, 2009 12:35 PM PST

Palm CEO holds court on patents, Pre

by Tom Krazit
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Palm CEO Ed Colligan is more worried about the Pre launch then a looming patent war with Apple.

(Credit: Corrine Schulze/CNET Networks)

Palm CEO Ed Colligan does not appear worried about the recent flap over Apple's multitouch patents.

Apple COO Tim Cook touched off a storm of speculation a few weeks ago when he declared Apple's willingness to go after anybody who tries to rip off the iPhone's intellectual property, and based on the context of the question posed to him, it appeared he was sending a warning shot across the bow of Palm's Pre smartphone. But Colligan downplayed the significance of the dispute Wednesday morning at the Thomas Wiesel Technology and Telecom Conference in San Francisco.

Companies assemble patents and make sure the industry is aware of their portfolio with defensive purposes in mind, Colligan said.

The whole area of patents is elaborate; (there are) a lot of issues there, and a very complex area. One of the things we've done over 15 years is build a very extensive patent portfolio in the mobile computing space, one of the highest-rated patent portfolios in this space, which contains more than 1,500 patents. And the reason you do that is to have a defensive position in the marketplace. It's kind of like two little porcupines going around, and you don't want to touch each other because you might get stung. You peacefully coexist and everything's OK and we keep working together.

Colligan took great pains to point out that no legal action has taken place between Palm and Apple as of this morning, and blamed "speculation" for much of the hand-wringing over whether a recently awarded patent for Apple's iPhone would prompt the company to go after Palm, especially in light of Cook's comments. Patent law is indeed complex, as anyone who has followed a patent trial can attest; patents can be interpreted in very different ways by judges and juries, and cases can drag on for years.

Still, any legal challenge would likely wait until after the Pre ships. Colligan did not shed any more light on that question, but addressed a number of Pre-related issues during his talk, as pieced together by PreCentral.

  • The Palm OS is officially dead, having been on life support for nearly five years. Palm will concentrate on its WebOS phones, such as the Pre, and its Windows Mobile phones in the future, Colligan confirmed.

  • Palm will offer a central application storefront, as expected, but will also let Pre owners download applications from external sources, one of the key questions following the device's introduction. Palm OS developers have long been accustomed to such an arrangement, and didn't appear keen on an Apple-style App Store where no external sites can officially distribute iPhone applications.

  • The key question regarding the Pre--its price--was not specifically addressed by Colligan. But he said that in the long term, Palm wants to return to enjoying gross margins of at least 30 percent, and that Sprint plans to make "a significant investment" into the price of the Pre, implying a heavy subsidy. Colligan vowed to price the Pre "at the right price level for the marketplace" while still attaining those margins.

Tom Krazit writes about the ever-expanding world of Internet search, including Google, Yahoo, online advertising, and portals, as well as the evolution of mobile computing. He has written about traditional PC companies, chip manufacturers, and mobile computers, spending the last three years covering Apple. E-mail Tom.
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by Penguinisto February 11, 2009 1:27 PM PST
Palm is pretty much correct in its official comments - Apple wasn't threatening anyone (it helps to read Tim Cook's comments in context, campers) - Apple merely said that if you trespass on their IP turf, you'll get the wrong end of a lawsuit.

So are we done with the idiotic speculations yet?
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by CDubber February 11, 2009 1:52 PM PST
Sticking with the doggish Windows Mobile while simultaneously releasing the slick and lickable webOS seems an odd choice. I don't imagine it will be long before Palm is kicking WinMo's trash to the curb.
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by lil-yankee February 11, 2009 1:55 PM PST
I will start by saying that i like this pre phone, alot.
Although i probably wont get it till is jailbroken or unlocked, i still see lots of potential in this phone.
It bugs me thought that i do think that they did things too similar to apple, but yet i think they should not be sued. let the competition bring benefits for us all
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by oneAwake February 11, 2009 7:32 PM PST
What would be the point in "jail-breaking" the Pre?? It will have the features the iphone is missing, Palms CEO (Ed Colligan) said they're not locking down the device so you can only install apps from their app store. You'll be able to "side load" apps directly over USB or over the air from any provider. http://www.precentral.net/palm-ceo-ed-colligan-talks-pre-investors
by NeverFade February 11, 2009 1:58 PM PST
They (Palm) really have nothing to lose.

Meaning they're really on the death's door, before the unveiling of the Pre. This is their saving grace. If they can't get this off the ground, they are dead. So, there's really nothing for them to lose. If they don't release it, they're easily going to be discarded. If they do, they might have to do battle with Apple, but atleast they got a chance.

I'll still be purchasing an iPhone, this summer though! ;)
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by Waam February 11, 2009 2:01 PM PST
I have gotten an iPhone, and won't be getting the Pre now. Why? I don't know. I just trust an Apple product more than anything Palm could make at the moment.
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by goodspeed8701 February 11, 2009 2:07 PM PST
Palm should sue apple for ripping off their technology. Apple stole more than 3 patented feature from palm.
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by random truth February 11, 2009 3:34 PM PST
But apple made the pda before palm did. It was called the newton and I am sure it had plenty of patents. If apple sued for lost sales they could get more money than palm is worth...
by biggstuu February 11, 2009 5:30 PM PST
I love statements in the affirmative without support evidence, links, or facts. You keep it up, youre doing great!
by random truth February 11, 2009 9:10 PM PST
@bigstuu
How about this. The product life for the newton was discontinued in 1995, The first palm pda came out in 1996.
by DougInKY February 11, 2009 6:01 PM PST
This news is disappointing to me. I take it that they have given up on backwards compatibility from Palm OS with the Pre. I have used Palms for a long time and have a bunch of software that I use. If they are going to make me have a complete brake then I expect I will buy an Apple. If they do add backward compatibility, then I expect they will sell me a Pre. Just have to wait to see although the removal of all Palm OS based PDA's and phones from their web site seems to spell it out pretty well.
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by taharka06 February 12, 2009 5:20 PM PST
LOL, that's funny. You are upset that Palm is bringing out a phone that is not backwards compatible with the Treo (which will not work with the "bunch of software" that you use). So your "solution" is to go to a phone that is...uhm...not compatible with the "bunch of software" that you use.
by gerrrg February 11, 2009 7:34 PM PST
Read between the lines. Palm is saying that they don't have multi-touch patent, but they have other things that MIGHT be negotiable patents against Apple's iPhone.
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by JohnSegal February 11, 2009 11:19 PM PST
You can download Apple's patents in PDF format for free from Patent Retriever http://www.patentretriever.com
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by Noneyabeeswax February 12, 2009 10:21 AM PST
Well Sprint definitely needs the sales this phone would generate. And it would give CDMA users a shot at a phone similar if not the same a an iphone. It might help Sprint retain their hemorrhaging customer base. And if they can get their customer satisfaction rates up by actually providing decent customer service.

I'm sure a lot of the stagnation in sales and losses of customers from other carriers were due to the iphone.

But there is that rumor about Apple vending to other carriers, and a subsidized iphone would only cost the customer 99.00, along with a more reasonable monthly fee structure for phone service. If Apple does that before Palm releases their new phone, Palm may find themselves scrambling for the stragglers from the stampede. And any lawsuit would be a moot point anyway. Apple is just trying to keep their phone from having any serious competitors. Why would Apple bother with spending millions on a lawsuit if they can gain ground in a much better way by taking a great big juicy slice of the market by making their iphone available though other carriers? And without all the expensive legal fees.
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