You’ve probably heard the buzz created when Apple’s attorneys contacted promotional products distributors last week. The issue is aftermarket charging cords and AC adapters sold that connect to iPads, iPhones and iPods, and Apple’s claim that they infringe on Apple patents. The attorneys are requesting, on behalf of Apple, that distributors immediately stop selling the products. Distributors I’ve spoken to say that this is a major issue. These products are in increasing demand from their end-user clients at precisely the time suppliers are pulling them from their product lines. Suppliers we’ve asked are hesitant to comment due to expected litigation, but it’s quite possible the industry impact may be even bigger than is being reported.
Aftermarket electronic charger and battery problems are not new. In July of 2013, a China Southern Airlines flight attendant was electrocuted while using an iPhone 5. She received an electric shock when she attempted to answer a call while her phone was still plugged in to a charger. While Apple stopped short of directly blaming a faulty third-party charger for the death of the flight attendant, it did add a page to their Chinese website with information on how to determine if a charger is a genuine Apple product.
Failed chargers that don’t come from the device manufacturer are not exclusive to Apple. In July of this year, a teenager in Texas was awakened by a Samsung Galaxy S4 smoldering under her pillow. The teen’s father suggested that the phone overheated, the battery swelled beyond normal size, and a small fire was created. Fortunately, the teen was not injured and, after inspection, Samsung issued a statement saying the battery was not original equipment. Samsung’s “Health and Safety and Warranty Guide” includes language warning against both using “incompatible batteries and chargers,” and “covering the device with bedding, yourself, or thick clothing….”
These increasingly popular consumer products have been around for a while, so why has Apple waited until now to take legal action against promotional products suppliers and distributors? My colleague, Dee Fenton, Quality Certification Alliance’s executive director of compliance, explains, “’Apple-compatible’ parts have been, and continue to be, readily available in the commercial market. Frequently, you can find both ‘Apple-certified’ and ‘Apple-compatible’ parts in the same store, or on the same website. Clearly, Apple could have chosen to make a lot of money much earlier in the game through enforcement patent rights, had revenue been the sole objective.” Fenton pointed to examples of availability of these types of chargers in any number of major retailers, like Target, Amazon, Walgreens, and Phone Parts USA, and they are widely available online through a variety of vendors.
It would appear that the issue is one we speak of frequently in this space—damage to the brand—rather than being all about the money for Apple. Fenton says, “When you think about product defects and associated risk, you might say ‘once an anomaly, twice a coincidence,’ but when the same issue is observed in three separate recalls during a single calendar year for a product category, it’s time to start calling it a trend.” With recalls from large manufacturers like Tectron, Gemini and Popkiller, Apple is likely concerned that the broad brush of product failures in aftermarket products will begin to erode consumer confidence in the genuine article. Doesn’t that only make sense?
How about you, how have you been affected by the patent infringement claim? Do your customers understand the real issues or are they just upset you can’t deliver the products they want, despite the risks involved to their brand? I would love to hear your thoughts on this, as well as on how you explain the situation, and the inherent risks, to your clients clamoring for these products.
