Tuesday, May 17, 2011

Microsoft, Nokia Team Up to Challenge Apple on "App Store" Name

Microsoft, Nokia and others joined together today to fight Apple's exclusive rights to the term "app store," adding another log to the fire of copyright litigation now blazing up in the tech industry.

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"Today's filings by HTC, Nokia, Sony Ericsson, and Microsoft, like Amazon's recent action, demonstrate the breadth of opposition to Apple's unsupportable claim of exclusivity," said a Microsoft representative. "'App store,' like 'toy store' or 'book store,' is a generic term that should continue to be available for everyone to use for stores that sell apps."
These companies are continuing the legal battle that began in 2008 when Apple first opened its App Store. At that time, its original filing for a patent was denied because of the term's generality. In 2010, after securing a Tentative Trademark that was left open to appeal, Apple then turned to the EU Community Trademark office for more substantial validation.
As Apple's App Store grows, ringing in three-quarters of worldwide app sales at nearly $3 billion in 2011, rival companies are racing to keep up. Amazon launched its own AppStore in March of this year, while Microsoft plans to start its own store in 2012 once its Windows OS is up and running on Nokia handsets.
Google's open-source Android Marketplace is growing fast and presents the biggest threat to Apple's closely-monitored App Store.
Apple has sent armies of lawyers to battle these newcomers to the smartphone and app market, suing Sony, Samsung, Nokia, Microsoft and a host of others for allegedly copying its product and service designs. These companies have responded in turn with their own suits, churning up the waters as these tech giants jostle for position in a fiercely competitive industry.
More than anything, these companies want to protect their niche markets from rivals who would encroach on their territory. Apple has pumped plenty of advertising dollars into its App Store brand, so it isn't surprising the Cupertino company won't give up without a fight.
As long as smartphones remain popular, apps will make up a vital chunk of the online market. And if they want to have a chance against Apple, the reigning king of app revenue, Microsoft and others must differentiate themselves now or risk becoming less unique copycats.
But with a clunky name like "Windows Phone 7 Store" Microsoft knows it won't score any cool points. So it, and others have a lot riding on the EU's review of its petition.
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