PBS' Cringely: Tiny Burst.com Will Overcome Apple (BRST, AAPL)

Includes: AAPL, BRST

In his yearly predictions column, PBS tech analyst Robert X. Cringely (a.k.a. Mark Stephens) tackles the Apple vs. Burst (OTC:BRST) patent infringement lawsuit:

'The reason Apple changed its MacWorld announcements at the last minute was because the company sued little Burst.com a few days before, trying to invalidate the Burst patents. But since Apple sued Burst, Burst shares have gone UP by 30 percent. The market is rarely wrong. Suing Burst was an enormous mistake for Apple, casting a pall on their video strategy and potentially costing the company strategic alliances with networks and movie studios. Apple realizes this now and is struggling internally to find a way to change course and put a positive spin on the course correction. Apple will lose and Burst will win, and Apple won't be able to afford to wait for the courts to decide anything, since time is critical in staking out Internet video turf. I predict that Apple will eventually take a license from Burst, that is UNLESS SOME OTHER COMPANY (Google? Real? Yahoo?) doesn't snatch up Burst first.

'Here's something I've noticed lately: Big companies believe in patents as long as they are talking about THEIR patents. Because Burst is three guys in an office in Santa Rosa, companies like Microsoft and Apple tend not to take them seriously. They forget that Burst spent 21 years and $66 million developing that IP, and the company has code that is still better than anything else on the market -- code not even Microsoft has seen. Unless someone buys the company first, Burst is going to win this and eventually license the world. They are in the right, for one thing, and in practical terms they now have as much money for legal bills as any of their opponents. Apple can't win this one.'

More on the Apple/Burst lawsuit from Forbes.

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