Well That Touched A Nerve: Lawsuit Targets Apple Technology

iPod

In a suit filed late Tuesday in U.S. District Court in San Francisco, Elan Microelectronics alleges that the multitouch technology Apple has made popular in its devices infringes on two of Elan's patents.

"We couldn't find a common viewpoint with Apple, so we decided we had to take action," Elan spokesman Dennis Liu told The New York Times, adding that the two companies have been in licensing talks for about two years.

Neither Elan nor Apple could be immediately reached Wednesday morning for additional comment on the patent infringement suit.

In a statement issued Wednesday, Elan said it is seeking an injunction that prevents Apple from producing, using and selling products that apply to its patents. Elan added in the statement that it owns the rights to the technology Apple uses in its products that detect the position of a finger on a touch screen, which lets users mimic a "pinch" motion to zoom in and out, rotate images and perform other tasks using their fingers on the screen. While Apple calls the technology "multitouch," Elan calls its own technology "multifinger."

Elan settled a previous lawsuit against Synaptics, in which it claimed the company was infringing on its touch patents. Initially, Elan won a preliminary injunction against Synaptics and Synaptics countersued. The two companies reached a confidential settlement in November 2008 and the lawsuits were dismissed.

Elan did not specify Wednesday what type of damages or action it is seeking, other than the injunction.

Apple has made a big splash with its multitouch technology, using it to make the iPhone one of the most widely used smartphones nationwide. In 2008's fourth quarter, Apple sold more than 4 million of its now-iconic iPhones, solidifying Apple's place as No. 2 in the overall smartphone market behind BlackBerry maker Research In Motion.

In response to Apple's touch-screen popularity, a host of other smartphone makers have joined the party, sparking a battle for touch-screen dominance. Since the first iPhone launched in summer 2007, RIM has launched its own touch screen, the BlackBerry Storm, and HTC and T-Mobile teamed up to release the Google Android-based T-Mobile G1. Palm, which has made touch-screen devices in the past, is also re-entering the fray, expecting to release the Palm Pre this summer.