Will Apple vs. Palm lead to mutually assured destruction?

Endgadget has posted a fabulous legal analysis of what some pundits are pitching as the fight of the century – Apple vs. Palm.

Although some pundits are predicting an imminent Apple smackdown on the Palm Pre after seeing its iPhone-like multi-touch technology in action, the situation is murkier than you might imagine. Patents held by both parties mean that there's a messy legal battle in store should should the thinly-veiled threats turn serious, and Apple's position could be more precarious than it seems.

Rather than just publish the usual bloggy pontification on the subject though, Endgadget has called upon a couple of patent lawyers to put both parties' predicaments into perspective, and it's a rivetting read. 

To recap, the forthcoming Palm Pre smartphone appears to include a number of iPhone-like user interface touches, all access via its multi-touch screen. When questioned about Apple’s generic statement that “we will not stand for companies infringing on our IP”, a Palm exec responded with “We have the tools necessary to defend ourselves." Factor in the recent patent that Apple secured on multi-touch display technology and the stage looks set for a legal battle of epic proportions, right?

Wrong, at least to Endgadget. Patent law is seldom simple and as its lawyers explain, while the Palm Pre does look like it includes certain features that might infringe upon certain Apple patents, the iPhone includes a fair number of features that can be be found in Palm patents, too.

In other words, any legal posturing on either side could soon snowball into a multi-million dollar lawsuit, and both Apple and Palm stand to lose a lot. Palm is in the last chance saloon with the Pre and any legal impediments to its launch could put the company in peril. In turn, Apple has made a lot of money from the phenomenally successful iPhone, and even the tiniest royalty payment award to Palm could end up as a very significant sum.

Judging by Endgadget’s analysis, both Apple and Palm's interests could be best-served by turning a blind eye to each other’s perceived patent infringements (remember that only a judge can decide if a patent has actually been infringed).

The only catch is that Apple is renowned for its impatience regarding patents, so the expectation is that it will be the first to fire a legal salvo – that’s assuming that the finished version of the Palm Pre's webOS user interface still resembles the prototypes we've seen so far, of course.

More, in much more detail than our summary, over at Endgadget and it's well worth a read.

[ Endgadget]