Patent war

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A patent war is a "battle" between corporations or individuals to secure patents for litigation, whether offensively or defensively. There are ongoing patent wars between the world's largest technology and software corporations. Contemporary patent wars are a global phenomenon, fought by multinational corporations based in the United States, China, Europe, Japan, Korea and Taiwan. [1] [2] [3] Patent wars have occurred in a wide range of technologies, both in the past and in the present.

Contents

History

Patent wars are not a new phenomenon. In the Wright brothers patent war, the Wright brothers, attributed with the invention of the airplane, sought to prevent competitors from manufacturing airplanes through litigation, stifling the development of the American airline industry. [4] Alexander Graham Bell, credited with inventing the telephone, was dragged into a patent war against his rivals, which involved, in just 11 years, 600 lawsuits. [5] One notable case was Bell's lawsuit against Western Union. Western Union was backed by Elisha Gray, also credited with inventing the telephone. [5]

The occurrence of patent wars has been shaped by the digital age, as the rapid pace of innovation makes much of the patent system obsolete. [6] In the 1980s, technology corporations in the United States and Japan engaged in a patent war, creating a scenario where companies were forced to "fight patent with patent." This bilateral patent war, partly exaggerated by the media, subsided by the mid 1990s. [7]

Exacerbating the frequency of patent wars was the advent of patent trolling. The term "patent troll" was coined in the 1990s by the employees of Intel and popularized by Intel's Peter Detkin. According to Detkin, Intel was "sued for libel for the use of the term 'patent extortionists' so I came up with 'patent trolls...a patent troll is somebody who tries to make a lot of money off a patent that they are not practicing and have no intention of practicing and in most cases never practiced." [8]

During the 1990s, federal courts began reversing earlier decisions made by the patent office that restricted the patenting of software. [9] In 1997, software companies Trend Micro, Integralis, McAffee and Symantec fought a patent war over antivirus software. [10] [11] In 1999, a patent for "one-click ordering technology" led to a patent war between Amazon.com and Barnes & Noble. [12] [13] In 2004, Sony and Kodak engaged in a patent war over digital cameras, [14] a dispute which lasted until 2007. [15]

The current smartphone wars started in the late 2000s. According to PC Magazine , Apple brought the patent wars to the smartphone market by its desire to "go thermonuclear" on Google's competing Android operating system for mobile devices. [3] This triggered a "war" between major technology companies in the mobile market. [3] Apple has been accused of having links to the company Digitude Innovations, which has been labeled as a patent troll. [16] Following this warfare, Apple itself has also been called a patent-troll. [17] [ unreliable source? ]

Alexander Graham Bell was involved in a patent war over the invention of the telephone. Alexander Graham Bell.jpg
Alexander Graham Bell was involved in a patent war over the invention of the telephone.

Effects and response

Patents are intended to protect intellectual property and encourage innovation, granting innovative companies a temporary competitive advantage over their rivals; however, patents have been used offensively through threats of litigation. This forces companies to allocate time and money that could have been better spent on research and development. [9] Businessweek has written that "only lawyers win in patent wars." [6]

There are numerous proposals aimed at reducing the risk of patent wars. Twitter announced in 2012 an "Innovator's Patent Agreement" promising not to use its patents opportunistically and without the consent of the company's employees. [18] There have been commentators favoring abolishing patents entirely, outside of the industries that require them. [19]

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Kodak American photographic and film company

The Eastman Kodak Company is an American public company that produces various products related to its historic basis in analogue photography. The company is headquartered in Rochester, New York, and is incorporated in New Jersey. Kodak provides packaging, functional printing, graphic communications, and professional services for businesses around the world. Its main business segments are Print Systems, Enterprise Inkjet Systems, Micro 3D Printing and Packaging, Software and Solutions, and Consumer and Film. It is best known for photographic film products.

McAfee American global computer security software company

McAfee Corp. is an American global computer security software company headquartered in San Jose, CA.

NortonLifeLock American software company

NortonLifeLock Inc., formerly known as Symantec Corporation is an American software company headquartered in Tempe, Arizona, United States. The company provides cybersecurity software and services. NortonLifeLock is a Fortune 500 company and a member of the S&P 500 stock-market index. The company also has development centers in Pune, Chennai and Bangalore.

Norton AntiVirus Anti-virus software

Norton AntiVirus is an anti-virus or anti-malware software product, developed and distributed by NortonLifeLock since 1991 as part of its Norton family of computer security products. It uses signatures and heuristics to identify viruses. Other features included in it are e-mail spam filtering and phishing protection.

Intellectual Ventures is an American private equity company that centers on the development and licensing of intellectual property. Intellectual Ventures is one of the top-five owners of U.S. patents, as of 2011. Its business model focuses on buying patents and aggregating those patents into a large patent portfolio and licensing these patents to third parties. The company has been described as the country's largest and most notorious patent trolling company, the ultimate patent troll, and the most hated company in tech.

In international law and business, patent trolling or patent hoarding is a categorical or pejorative term applied to a person or company that attempts to enforce patent rights against accused infringers far beyond the patent's actual value or contribution to the prior art, often through hardball legal tactics. Patent trolls often do not manufacture products or supply services based upon the patents in question. However, some entities which do not practice their asserted patent may not be considered "patent trolls" when they license their patented technologies on reasonable terms in advance.

Intertrust Technologies Corporation is a software technology company specializing in trusted distributed computing. Intertrust’s product lines consist of a DataOps platform, Application protection and Content protection solutions. Much of Intertrust's digital rights management (DRM) business is based on the Marlin DRM technology, which Intertrust founded along with four consumer electronics companies: Sony, Panasonic, Philips, and Samsung.

The multinational technology corporation Apple Inc. has been a participant in various legal proceedings and claims since it began operation and, like its competitors and peers, engages in litigation in its normal course of business for a variety of reasons. In particular, Apple is known for and promotes itself as actively and aggressively enforcing its intellectual property interests. From the 1980s to the present, Apple has been plaintiff or defendant in civil actions in the United States and other countries. Some of these actions have determined significant case law for the information technology industry and many have captured the attention of the public and media. Apple's litigation generally involves intellectual property disputes, but the company has also been a party in lawsuits that include antitrust claims, consumer actions, commercial unfair trade practice suits, defamation claims, and corporate espionage, among other matters.

Broadcom Inc. American semiconductor company

Broadcom Inc. is an American designer, developer, manufacturer and global supplier of a wide range of semiconductor and infrastructure software products. Broadcom's product offerings serve the data center, networking, software, broadband, wireless, and storage and industrial markets.

Finjan Holdings (Finjan) is a company that focuses on the licensing of intellectual property. Finjan claims to own patented technology used in enterprise web security tools. Formerly a publicly traded company on NASDAQ (FNJN), it was acquired by the Fortress Investment Group in 2020.

Legal scholars, economists, activists, policymakers, industries, and trade organizations have held differing views on patents and engaged in contentious debates on the subject. Critical perspectives emerged in the nineteenth century that were especially based on the principles of free trade. Contemporary criticisms have echoed those arguments, claiming that patents block innovation and waste resources that could otherwise be used productively, and also block access to an increasingly important "commons" of enabling technologies, apply a "one size fits all" model to industries with differing needs, that is especially unproductive for industries other than chemicals and pharmaceuticals and especially unproductive for the software industry. Enforcement by patent trolls of poor quality patents has led to criticism of the patent office as well as the system itself. Patents on pharmaceuticals have also been a particular focus of criticism, as the high prices they enable puts life-saving drugs out of reach of many people. Alternatives to patents have been proposed, such Joseph Stiglitz's suggestion of providing "prize money" as a substitute for the lost profits associated with abstaining from the monopoly given by a patent.

Patent monetization refers to the generation of revenue or the attempt to generate revenue by a person or company by selling or licensing the patents it owns. According to a 2006 survey of patent owners at the European Patent Office, about half of small and medium-sized enterprises (SMEs) take patents for monetary reasons.

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Keker, Van Nest & Peters LLP

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The smartphone wars or smartphone patents licensing and litigation refers to commercial struggles among smartphone manufacturers including Sony Mobile, Google, Apple Inc., Samsung, Microsoft, Nokia, Motorola, Huawei, LG Electronics, ZTE and HTC, by patent litigation and other means. The conflict is part of the wider "patent wars" between technology and software corporations. The patent wars occurred because a finished smartphone might involve hundreds of thousands of patents.

VirnetX Company described as a patent troll

VirnetX is a publicly traded Internet security software and technology company based in Zephyr Cove, Nevada. VirnetX has been described as being a patent troll, accused of marketing no actual products or services and instead earning its revenue through licensing patents and suing anyone that infringes them. The company has won intellectual property litigation against various technology companies. The firm is run by Kendall Larsen and his family.

A patent privateer or intellectual property privateer is a party, typically a patent assertion entity, authorized by another party, often a technology corporation, to use intellectual property to attack other operating companies. Privateering provides a way for companies to assert intellectual property against their competitors with a significantly reduced risk of retaliation and as a means for altering their competitive landscape. The strategy began with a handful of large operating companies. In April 2013, a group of technology companies asked the U.S. Department of Justice and the Federal Trade Commission to investigate the privateering strategy as an impediment to competition.

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Van Lindberg

Van Lindberg is an American attorney, software developer, and author. He currently works as a partner at Taylor English, a national law firm, and as the CEO of OSPOCO, and open source program office-as-a-service business. Since 2012, Lindberg has been a director on the Board of the Python Software Foundation, where he also currently serves as its general counsel. Prior to working at Taylor English, Lindberg was Vice President and Associate General Counsel at Rackspace, an attorney at the law firms of Dykema and Haynes and Boone, and as an engineer for the web hosting company Verio. Lindberg has been recognized by the American Bar Association Journal as "One of the Nation's 12 Techiest Attorneys."

References

  1. Rowinski, Dan (1 June 2012). "Patent Wars Turn Tech into a Battlefield". ReadWriteWeb. Archived from the original on 6 August 2012. Retrieved 6 August 2012.
  2. Francis, Theo (2 August 2012). "Can You Get A Patent On Being A Patent Troll?". NPR. Retrieved 6 August 2012.
  3. 1 2 3 Sascha, Segan (19 January 2012). "Infographic: Smartphone Patent Wars Explained". PC Magazine. Retrieved 6 August 2012.
  4. Lohr, Steve (30 July 2012). "Apple-Samsung Trial Highlights Tricky Patent Wars". The New York Times.
  5. 1 2 Anton A. Huurdeman (31 July 2003). The Worldwide History of Telecommunications. John Wiley & Sons. pp. 176–177. ISBN   978-0-471-20505-0 . Retrieved 7 August 2012.
  6. 1 2 Popelka, Larry (24 April 2012). "Only Lawyers Win in Patent Wars". Businessweek. Retrieved 6 August 2012.
  7. Ove Granstrand (1 October 2000). The Economics and Management of Intellectual Property: Towards Intellectual Capitalism. Edward Elgar Publishing. pp. 140–141. ISBN   978-1-84064-463-0 . Retrieved 6 August 2012.
  8. Sandburg, Brenda (30 July 2001). "Inventor's lawyer makes a pile from patents". The Recorder.
  9. 1 2 "When Patents Attack". NPR. 22 July 2011. Retrieved 8 August 2012.
  10. Galante, Suzanne (8 July 1997). "Trend Micro wages patent war". CNET. Retrieved 6 August 2012.
  11. Galante, Suzanne (29 August 1997). "Symantec retreats in antivirus war". CNET. Retrieved 6 August 2012.
  12. Adam Cohen (3 June 2003). The Perfect Store: Inside eBay. Hachette Inc. p. 90. ISBN   978-0-316-16493-1 . Retrieved 7 August 2012.
  13. Richard Spinello (6 July 2010). Cyberethics: Morality and Law in Cyberspace. Jones & Bartlett Publishers. pp. 170–173. ISBN   978-1-4496-5402-3 . Retrieved 7 August 2012.
  14. "Digital camera patent war hots up". BBC. 1 April 2004. Retrieved 6 August 2012.
  15. "Kodak and Sony end patent dispute over digital photography inventions". New York Times. 3 January 2007. Retrieved 6 August 2012.
  16. Kincaid, Jason (9 December 2011). "Apple Made A Deal With The Devil (No, Worse: A Patent Troll)". Techcrunch. Retrieved 6 August 2012.
  17. Wilcox, Joe. "Apple is a patent-troll now" . Retrieved 20 December 2012.
  18. Laird, Sam (18 April 2012). "Is Twitter trying to end the tech patent wars?". CNN. Retrieved 6 August 2012.
  19. Wadhwa, Vivek (7 August 2010). "Why We Need To Abolish Software Patents". Techcrunch. Retrieved 8 August 2012.