Google, Inc. (NASDAQ:GOOG) is learning the hard lesson that Apple Computer, Inc. (NASDAQ:AAPL) and Microsoft Corp. (NASDAQ:MSFT) had beat into them earlier. When you get big, you get lawyers.
The list of Microsoft's big suits ranges from antitrust to patent violations. Its struggles with the monopoly position of its software in Europe continue. It had paid $750 million to settle antitrust issues with Time Warner, Inc. (NYSE:TWX) over the Netscape browser's dismantling at the hands of Internet Explorer. It made a settlement of similar size with Real Networks over the monopoly position of the Windows Media Player. The list goes on, and on, and on.
Over at Apple, the company has just settled an antitrust claim over the iPod, paying Singapore-based Creative Technologies $100 million. The Apple 10-K lists 27 legal cases in which Apple is involved.
Now it's Google's turn. The search giant faces diverse suits from copyright claims over its use of news material, the way the websites are ranked on Google pages, to trademark infringement. There is an article a day in the press about the issues Google could face due to its acquisition of YouTube.
Google's other problem is that it has money. Filing a lawsuit against a firm that is poor is usually bad business.
Google's legal issues will probably go one of two ways over time. Apple has largely avoided large lawsuits that damage its business and expansion. On the other hand, Microsoft has had some of its businesses sharply curtailed.
As Microsoft and Apple resolve their legal problems, they can send their lawyers over to Google. At least the attorneys will have had plenty of practice.
Douglas McIntyre is a partner at 24/7 Wall St.
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