Microsoft, Apple battle for patent

SAN FRANCISCO - Given the intense rivalry between Apple Computer Inc. and Microsoft Corp., this recent revelation had a comedic tinge: Apple took too long to file a patent on part of its blockbuster iPod music players, so Microsoft beat Apple to it.

Bloggers and other tech pundits snickered at the prospect of Steve Jobs having to pay Bill Gates royalties on the beloved iPods, which account for more than one-third of Apple's revenue. One Web columnist even dubbed the patent office the "iPod killer."

But that scenario is unlikely.

The U.S. Patent & Trademark Office last month rejected a request that Apple filed in October 2002 to patent technologies that support the iPod's rotational wheel interface. The reason for the rejection: Microsoft beat Apple to the patent office with a similar request by five months.

"It's still very early in the process," said John Ferrell, a co-founder of Carr & Ferrell LLP and a leading Silicon Valley patent attorney. "Apple still has a lot of options. This is not like a Supreme Court decision."

Apple could file a declaration stating that it invented the technology before Microsoft filed its request - as evidenced by the iPods already on the market. In such cases, a company can ask the patent office to launch an investigation to determine the inventor.

Apple also could alter its patent claims so they don't overlap with Microsoft's. As a result, a final answer on who owns the patent for iPod's interface might not be answered for at least six months, Mr. Ferrell estimated.

Apple did not say why the applications took so long. Apple said in a statement that it "has received many patents for inventions related to iPod, and has many more patents pending."

Microsoft released a statement saying only that it has a long-standing policy of licensing its patents to others.