After Legal Victory, Apple Patently Rules in Mobile Devices - Wall Street Journal

By ROLFE WINKLER

Apple wasn't the only winner in court Friday. Nor was Samsung the only loser.

When the iPhone maker prevailed over the Korean conglomerate in their patent dispute, the big loser may have been Google . In effect, Apple has been fighting a proxy war against the search giant by going after makers of devices running Google's Android mobile operating systemâ€"including Samsung, HTC and Motorola Mobility. They now are fighting directly since Google acquired Motorola in May.

Granted, the case doesn't strike a mortal blow at Samsung's mobile businessâ€"the Korean giant can absorb damage costs and engineer around patents it was found to violateâ€"but the verdict does give Apple more momentum. It is suing Android makers in multiple countries and has already scored other legal victories establishing that devices running Android violate its patents.

Ultimately, Apple appears to want Android makers to redesign their devices so more features are unique to the iPhone.

As there is no end in sight for the legal battles facing makers of Android devices, they "will increasingly look to hedge their bets," argues intellectual-property consultant Florian Mueller. That means looking at other operating systems to run their devices.

Enter Microsoft, whose Windows Phone operating system is backed up by a solid patent portfolio. Indeed, manufacturers like HTC and Samsung not only make Windows Phone devices, they also pay Microsoft royalties on their Android devices. That is because, like Apple, Microsoft says Android trespasses on its intellectual property. So to hedge their Android bet, it makes sense that manufacturers will increase their focus on Microsoft devices.

The California case could be especially helpful to Microsoft in the tablet market. Android had a 60% share of the smartphone market in the 12 months through June, compared with Apple's 20% share, according to Strategy Analytics. But in the tablet market, Android had a 33% share next to Apple's 63% share. No rival tablets compete against the iPad as effectively as, say, Samsung's Galaxy smartphones compete against the iPhone.

So Microsoft's Surface and other tablets running Windows looked set to be the first real challenger for the iPad when they come out this fall. If this case causes manufacturers to reduce their focus on developing Android tablets, Microsoft would get an added boost.

Amazon.com may want to watch its back. Its Kindle Fire is an Android device. Also, it is one of the only tablets with meaningful sales besides the iPad. And with a "mini" iPad that competes directly with the Fire likely coming soon, Apple might add Amazon to its list of legal targets. Amazon has a weaker patent portfolio than Google, argues Mr. Mueller.

If it was even possible for Apple to have a stronger hand in mobile, this legal victory deals it another trump card. Everyone else is just fighting to sit at the same table.

Write to Rolfe Winkler at rolfe.winkler@wsj.com