Apple, Samsung & the Model T - A Lesson in Sharing

On the face of it, one would give little thought to how much the evolution of the mobile device may end up mirroring the evolution of the automobile. After all, the two products differ in their complexity and their manufacturing considerations to such an extent one might wonder where they could relate at all. Yet mobile device makers would do well to take note of one key area where automotive manufacturers have learned vital lessons - the importance of sharing.

Car shopping may not be the most enjoyable consumer experience, but one thing is guaranteed - No matter the number of dealerships and brands you peruse, the vast majority share the same set of standard and optional features. By and large equipment such as intermittent wipers, heated seats and ABS are offered by every brand. Even if there is a feature only offered by a single brand, you will not find yourself in a position of asking a Ford salesperson if you can purchase keyless entry and having the salesperson respond, "I'm sorry but Chrysler holds the patent, and they aren't keen on sharing".

On the other hand today's tech headlines usually involve one or two stories concerning patent battles between smart phone producers, especially the two biggest - Apple and Samsung. From physical product shape to OS features, the court battles are fierce and involve hundreds of millions of dollars. So unlike the aforementioned scenario with car shopping, finding a mobile device that has all the features you desire is unlikely because the brands essentially (and purposely) prevent your ideal device from existing.

So how did automobile manufacturers find this marketplace zen? Surely their desire to better their competitors is as fierce as any other business. So was there an epiphany moment over a bottle of scotch in a oak paneled office somewhere in Detroit? Not exactly - but not too far from reality either. The truth is that car makers learned a lesson that today's tech companies should heed - that sharing is preferable to spending endless years in court.

According to sources including the book The Automobile Age (James J. Fink) and Monopoly on Wheels (William Greenleaf and David L. Lewis), a patent battle that loomed over the use of the gasoline engine for over 8 years in the early 20th century triggered the National Automobile Chamber of Commerce to create a cross-manufacturer patent sharing agreement in 1914 where even non-member companies such as Ford agreed to share their patents (at that time Ford had 92 patents) without expectation of royalties. In fact, the agreement has been renewed at five year intervals since 1935.

As the automotive industry has continued to evolve with hybrid and electric vehicle innovations playing a critical role, this agreement could be seen as holding even greater importance today than at any other time in the history of the industry, and yet the renewals happens apace. Consider that the brake force redistribution technology that is commonly used by different manufacturers in their hybrid models was originally patented by Toyota in 1994.

This patent sharing agreement not only holds historical significance for the mobile technology industry in how they can reinvent relationships with each other, it also clearly demonstrates that a healthy, competitive market can still exist after patent sharing becomes the norm. Most importantly, the companies who are stakeholders in the agreement do not lose face, market share, or their ability to woo buyers to their brands.

Ultimately mobile technology leaders may do best by employing a little backward thinking in order to move forward.

Too Many Packages Or Too Much Packaging This Holiday Season?

As a parent there are few holiday moments more aggravating than the calm after the gift exchange storm when children clamour to get a hold of the bobbles and trinkets behind all the glossy packaging that, until recently, had been hidden under wraps.

With every twist-tie undone, every plastic clip snipped off and strip of tape sliced a body can begin to wonder if the toy industry's loss prevention strategies have evolved for the better.  After all, much like with home burglaries - no matter how good the security system may be, if a thief is truly intent on taking your valuables the security system is a mere inconvenience.

Let us not forget other industries that tend to provide exquisitely designed (yet readily thrown away) packing material for MP3 players, smart phones and other such items where the customer's only real concern is the 'cool' factor of the product within. Yes, I will readily admit I have been in awe of a certain fruit-inspired company's packaging, but you could still count on two hands the number of extra seconds I spent admiring it before focusing my attention on the piece of hardware inside.

After the flurry of activity this holiday season when one gazes upon the pile of plastic, cardboard and paper strewn across the floor - it becomes easy to quantify the immediate loss that all of the excess packaging creates.  For the business producing the consumable, the energy and time spent designing & producing the packaging is cost completely unrelated to the product and ultimately valued (or deplored) by the customer for mere moments.

For the retailer, every inch of extra space occupied by excess packaging is square footage that could be used to house more product, more efficiently - or space that could be reduced from their store front footprint. Odd sized or oversized packages can become the elephant in the room that no one wishes to address even though it's an obvious eyesore to all.

In shipping cost, every ounce of excess represents further waste of energy, fuel and labour - another area prime for reduction, whether in lighter packaging, less packaging - or reusable packaging.  Then comes the related environmental cost - one so easily forgotten after you have deposited the waste in a recycle bin or garbage can. Each one of those bins introduces another process that foists shipping, energy and labour costs onto municipalities that will be passed on to residential and commercial tax payers alike in the shape of tax hikes and user fees.

So with the rapid and dramatic swings of the global economy causing almost every industry (and government for that matter) to rethink and retool in almost every way - isn't it time we address the waste we all create, and the waste it all creates? By evolving the idea of packaging, industries will produce less waste, use fewer resources and consume less energy.  The net result is companies can save millions in lower costs attributed to bringing their product to market, while engaging consumers in marketing that drives the message - Buy from companies that are truly doing more with less.