Wednesday 23 January 2013

Unplugged: Apple-Samsung showdown?


Apple's testy patent war with Samsung about smartphone technology infringement won't amount to more than a fragrant pile of loaded diapers.

Unplugged: Apple-Samsung showdown has diaper whiff

(Editor's Note: This is the debut tech column of Mark Veverka, which will run twice a month in the Money section.)

SAN FRANCISCO -- Apple's testy patent war with Samsung about smartphone technology infringement won't amount to more than a fragrant pile of loaded diapers.

Despite the hype and sensational press coverage surrounding the U.S. litigation late last summer, the ramifications of the legal skirmish will ultimately fall flat.

It's likely to play out like another high-profile corporate intellectual property battle: Pampers vs. Huggies.


Procter & Gamble and Kimberly-Clark spent several years late last century slapping each other with series of lawsuits about technology (what, you don't consider elastic bands technology?) used in their popular lines of disposable diapers, Pampers and Huggies, respectively. They ultimately settled and are still going toe to toe, but more on them later.

First, why will Apple and Samsung continue to fuel their share of incendiary headlines in this new year? Any time a corporation is on the hook for more than $1 billion in court-awarded retribution, as is Samsung, people -- especially shareholders, customers and competitors -- are going to pay attention.

Fear-mongers foretell soaring smartphone prices and new limitations on cool innovations for non-Apple handset makers, which include Samsung, Nokia, Research In Motion's BlackBerry, HTC, Google's Motorola unit and others.....


What does all this have to do with diapers?
Consumer products behemoth Procter & Gamble introduced its iconic Pampers line of disposable diapers in 1961. Pampers ruled the playpen for nearly two decades before rival Kimberly-Clark launched its innovative Huggies line in 1978, which featured an elastic waist band and elastic leg bands. (Genius, I know.) In just seven years, Kimberly-Clark's share of the disposable diaper market saw major growth, while P&G's market share took a hit.
That loss of market share prompted P&G to file a patent-infringement suit in 1985 against Kimberly-Clark, which countered with a lawsuit of its own the following year. The two consumer products giants slugged away in federal court for seven years before settling their cases in May 1992 on the eve of an antitrust case filed by Kimberly-Clark. More than 20 years later, neither company's diaper business has pooped out. Kimberly-Clark leads the $30 billion global segment, and Procter & Gamble is second.

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