- Is Microsoft preparing us to move beyond Vista?
- Why Google wanted to lose wireless spectrum auction
- iPhone shortage fuels rumors of imminent 3G phone
- XP for cheap PCs: a second crack in the wall
- Darts into data: Leveraging random action to competitive advantage
- Most iPhone buyers are existing Apple customers
- AT&T's so-called open network principles
- Mono dev tool offered
- ActiveState upgrades IDE
- Serena plans SaaS products
January 19, 2006 | Comments: (0)
Legal experts say lawsuit against Apple is not a far-fetched possibility
After being called stupid, ignorant, ill-informed and a journalist who lacks integrity following my blog post "Is the MacIntel box exposing Apple to a restraint of trade lawsuit?" it is nice to get two reasonable comments from people with some legal expertise. As it turns out these two do not think a lawsuit is far-fetched.
To recap, in the blog, I had the nerve to quote an industry analyst, Nathan Brookwood, principal at Insight 64, who suggested that Apple may be opening itself up to a law suit if it refused to offer OEM agreements to PC makers for OS X.
Below are two sane responses from readers. They are certainly worth considering:
"Only one clarification to the many comments on antitrust and Apple's market share %. As per my Business Law classes, in bringing actions for antitrust, the government has a great deal of flexibility in defining the "market" that the anti-competitive behavior impacts. Such as "computer workstations used for prepress activities in the Northeast", thus traditional market share estimates rarely define "monopolies".
Posted by: Marti Green at January 18, 2006 04:05 PM
"Nathan Brookwood is specifically talking about a Supreme Court precedent called Digidyne v. Data General. The Supreme Court let a 9th circuit decision stand. The case is interesting both by its potential reach and because it was seen as an anti-business decision at the time.
"The basic case was that Digidyne wanted Data General to license its NOVA oper-ating system called RDOS to Digidyne's clone of a DG NOVA Mainframe. Data General refused and was eventually forced into licensing the OS software because it was ruled that restricting the license to only DG hardware was an illegal tying arrangement.
"This seems like it might very well apply to Apple in the case of OS X on x86 hardware. But if you read the ruling you will see that any equipment manufacturer would have to overcome some pretty substantial obstacles to get the same ruling.
"First, DG lost because RDOS was the only viable operating system software for NOVA and any clones. There was no other reasonable OS available for the clone makers. Dell can hardly claim the same considering that they currently ship both Windows and Linux. Claiming that those two OS's are not "uniquely desirable by buyers" would be a stretch.
"To quote the 9th circuit decision: "Although expressing some doubt as to the sufficiency of the evidence, the district court assumed defendant's RDOS was supe-rior to competing operating systems and was viewed as uniquely desirable by buy-ers. 529 F. Supp. at 816.We do not share the court's hesitancy about the adequacy of the proof of the strong preference of many customers for RDOS. It was a most popular product."
"Even DG admitted that there was no viable alternative. Again from the record, "the only full service operating system available for the NOVA."
"Second, the court determined that to recreate RDOS would be prohibitively expensive and probably not practical. Again, with Linux and other free operating sys-tem software readily available, it is hard to believe that the courts would come to the same conclusion in the case of Apple and OS X.
"So Nathan, if you would care to follow up, how do you defend your supposition that Apple will be forced through this case to untie OS X from Apple hardware?
Posted by: James Bailey at January 18, 2006 03:10 PM
I rest my case with only this additional comment.
I never quite understand why people who use Apple, with the exception of me. I have one at home, get so hot under the collar when someone suggests the world of Apple is not all peaches and cream.
-- Ephraim Schwartz
Posted by Ephraim. Schwartz on January 19, 2006 01:58 PM
RATE THIS ARTICLE:
-

- COMMENTS
My interpretation of Mr Bailey's post does not support the notion that a lawsuit is "not too far fetched". He even challenges Nathan Brookwood to defend his position which tells me he does not agree with the idea that a lawsuit is probable. It appears to me that the Digidyne v. Data General case is drastically different from the Apple/Intel situation therefore, no lawsuit based on this precendent is remotely conceivable.
The other statement by Mr Green regarding the market share having little to do with what is considered a monopoly neither supports nor opposes the idea of a lawsuit under these circumstances. He is merely clarifying an issue that many who disagreed with your blog were using as a rebuttal.
Given the litigious society in which we live, I would not be surprised if a lawsuit of this nature were filed and even heard by the courts. However, I must concur with the others that Apple is not engaging in restraint of trade simply because they have changed the CPU architecture from proprietary to an industry standard.
Posted by: Bryan at January 19, 2006 02:59 PMIANAL but I never meant to suggest that winning a lawsuit on this issue would be a slam dunk. It's likely that any PC supplier who has the dollars to pursue such an issue would also have the sense to avoid tilting at windmills for questionable economic gain. Apple would have to achieve a substantial increase in its market share before such a quest would be worth the effort. Nevertheless, should some aggrieved party try to bring such an issue before the courts, I suspect they'd be able to get past the "frivolous lawsuit" stage and get an honest hearing.
In the unlikely event Apple's Macintosh market share ever gets to the point where others want to feast on the crumbs they leave behind, I will monitor the court proceedings closely, and reserve the right to say "I told you so," regardless of the success or failure of the plaintiff's case.
[Just out of curiosity, is the James Bailey who commented the same fellow who was the marketing muscle behind "Thinking Machines?"]
Posted by: Nathan Brookwood at January 19, 2006 07:33 PMApple could state that it's operating system is FREE.
Open Darwin is available. So it would be suicide for a lawyer to aruge for Apple to OEM the operating system.
Now the user interface layer, aka MacOS X, only operates on Apple machines... or does it.
This layer was OpenStep, nee, NextStep. This layer ran on SunOS, HP-UX, the NextOS, and Windows.
I'm sure when Apple has more mindshare in the applications area, it will sell the application layer for Windows, and hopefully Linux X86. You will not get the MacUI, but you will get the Applications (iPhoto, keynote, etc).
How to kill a lawsuit... Let the other sides lawyers run up the bill and the hype for a while... Let the bollgers run rampant... Free publicity..
Then release the application layer, and charge a bundle for developers to sell apps on other OS's.
I remember the Apple vs Frankin Computers suit and I wonder if it is relevent to any of this?
Posted by: John Dorman at January 20, 2006 11:08 AMApple's OS-X is based on FreeBSD- which is, as the name implies, free. Apple has added on to FreeBSD with it's Darwin interface and various packages (iTunes, iLife, etc.) Would they really be required to OEM these products, as there are alternative products available?
Posted by: bill perkins at January 20, 2006 11:25 AMCorrection: OS X is based on Darwin, which is Mach 3.0 microkernel (http://en.wikipedia.org/wiki/Mach_kernel) plus FreeBSD services. The user interface is Aqua.
Posted by: Daniel Escasa at January 20, 2006 06:49 PMSo Pepsi could be sued for a monopoly at Butler University and Coke could be sued for a monopoly at Indiana University?
Posted by: Feldar at January 21, 2006 04:54 AMAs to the "various packages" that Bill Perkins mentions, Apple's "iToons" software is already freely available for the Windows operating system, and I know of many people who use that version on their laptop PC - of what ever manufacture. If the demand for other applications in the iLife suite were there, I'm sure Apple would get around to making a port available at the same cost as the OS-X version.
Posted by: John Fauver at January 22, 2006 01:32 PMBut Apple does not now, nor did they previously, target their MacOS at, or claim to support, IBM clones. IBM clones have a myraid of OSs available, Solaris, BSD Unix, Darwin, Linux, OpenBEOS, Windows. With several of these being open source, it is all but impossible for them to disappear, even if windows and solaris did. Even Solaris might be resurected by open source developers. And since the IBM clones were never designed with MacOS in mind anyways, common sense dictates the likelyhood of any major manufacturer wanting to pursue this is negligeable.
Posted by: J3ph42 at January 27, 2006 09:40 AMHmm... I think the real issue will be if Dell or HP wants to make their own Mac-compatible x86 hardware, what is Microsoft going to say about it?
Plus, the new x86 Macs use a slightly different BIOS that isn't supported by Windows
Posted by: corey lawson at January 28, 2006 12:23 AMHave you read about the lawsuit on prepress software for variable data printing? It is about RR Donnely a HUGE printing company suing Quark and Kodak/Creo for patent infringement on prepress software, it was all developed on Mac OS X.
Posted by: prepress mac dude at February 21, 2006 12:08 AMTOP STORIES
ADDITIONAL RESOURCES

- Best Practices for Successful SOA Governance
- Application Grid: Oracle's Vision for Next-Generation Application Servers and Infrastructure
- Do you have the power to resolve technical issues with one call?

- Sun Microsystems: The Green Tide Is Coming.
- More Effective Antivirus Protection
- Stop Spam, Phishing and Viruses





