Palm could find themselves the subject of an Intellectual Property (IP) lawsuit, if Apple follow through with thinly veiled threats from executive Tim Cook.  The argument centers around whether the Pre infringes on multitouch and capacitive gesture technology that Apple developed for the iPhone, patenting along the way, and was raised during Apple’s recent financial report conference call.  Questioned about maintaining the iPhone’s market lead, Cook told analysts “[Apple] don’t mind competition, but if others rip off our intellectual property, we will go after them”.

When pressed with comparisons between the iPhone and the Pre, Cook declined to single out Palm, insisting that his threat of legal action was intended more generally.  However he reiterated that much of what makes the iPhone special is the software it uses, and that Apple would “not stand for companies infringing on our IP.”

Apple announced record profits for the last quarter, surprising some analysts who had predicted a slump in sales as has affected much of the rest of the consumer electronics industry.  Both the Pre and the iPhone use similar capacitive touch panels, broadly capable of much of the same gesture technology; the Pre’s is believed to be supplied by Cypress Semiconductors.  Part of Apple’s position may be the role ex-employee Jon Rubinstein played in developing the Palm Pre, having jumped ship from heading Apple’s iPod division.