This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

TechWeek: How Apple Got a Sweet Deal

At least from a public relations perspective, this week wasn't a great one for Apple Computer (AAPL - Get Report).

The company recalled 1.8 million batteries used in its notebook computers. Rival SanDisk (SNDK - Get Report), the No. 2 maker of digital music players in the U.S., got a lot of buzz for a new product that, at least on paper, looks superior to Apple's iPod nano, its bestselling model.

And the company agreed to pay Creative Technologies (CREAF) $100 million to settle a patent dispute, essentially -- if not technically -- admitting that it had illegitimately borrowed some of Creative's ideas in designing the iPod's interface.

But PR -- not to mention $100 million -- isn't everything.

When compared with the way other notable patent disputes have gone of late, Apple's settlement with Creative starts to look like one of the best ways to handle a bad situation: Faced with a serious threat to a core product, you get your lawyers on the phone with the other guy's lawyers, you throw some money at the problem, and you settle it -- and make it go away.

And you get bonus points if, like Apple, you can turn your potential courtroom opponent into a business partner and give yourself a chance to recoup some of your settlement costs.

"This is a smart move for Apple," says Scott Marrs, a patent attorney for Houston, Texas-based Beirne, Maynard & Parsons. "Someone really took a hard look at this -- and appropriately so -- and said, 'Let's focus on our future business.' "
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CREAF $0.72 0.69%
AAPL $93.70 -0.60%
SNDK $67.29 0.09%
TIVO $7.45 -0.80%
FB $101.91 0.90%


Chart of I:DJI
DOW 15,660.18 -254.56 -1.60%
S&P 500 1,829.08 -22.78 -1.23%
NASDAQ 4,266.8370 -16.7550 -0.39%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs