The announcement by Google to acquire Motorola Mobility on 15 August 2011 for $12.5 billion has included much speculation and discussion about the patent library that comes with it. During the investor conference call, Larry Page noted the importance of Motorola's patents and how it would help defend Google in the ongoing patent infringement law suits from Apple and Microsoft. The deal itself follows July's announcement that the bankrupt Nortel Networks had sold its patents to a group including Apple, Sony, Microsoft and RIM for $4.5 billion.
So, you may ask, what has this to do with me? Big companies, doing big deals and fighting each other over patent infringements..."Plus ça change".
Whilst the headline numbers are beyond many people's comprehension the underlying impact on technology and software companies is potentially far reaching in terms of future innovation, investment and reward.
I didn't realise until reading an article about Facebook's search patent, which was granted in February, that these mega technology companies were patenting "ideas" that you and I take for granted. The latest to be approved for Facebook "Giving gifts and displaying assets in a social network environment" describes itself as follows:
So, you may ask, what has this to do with me? Big companies, doing big deals and fighting each other over patent infringements..."Plus ça change".
Whilst the headline numbers are beyond many people's comprehension the underlying impact on technology and software companies is potentially far reaching in terms of future innovation, investment and reward.
I didn't realise until reading an article about Facebook's search patent, which was granted in February, that these mega technology companies were patenting "ideas" that you and I take for granted. The latest to be approved for Facebook "Giving gifts and displaying assets in a social network environment" describes itself as follows:
"A system and method is described for giving gifts via a social network and displaying icons representing assets that have been acquired via the social network. In various embodiments, the assets include real assets, digital assets, and virtual assets. Digital assets that have been acquired via the social network environment may also be displayed. In some embodiments, the assets are received as gifts or in trade from another user of the social network environment."
Now, I am no patent lawyer, but this latest one, which has taken over four years to be granted, sounds like it changes the landscape for many companies. Just think, if there is a social element to a site, where you can give a gift voucher or buy and sell products or, services, then this now, potentially, infringes Facebook's patent. Even if your site was created five years ago it now faces the threat of infringing one of the biggest company's in the world's patents!
Patent "Trolls" are busy applying for, and the US Trademark and Patent Office is granting, patents that appear to be just ideas and bear no commercial reality. The statistics on the value of infringement claims bears this out - according to PriceWaterhouseCoopers report on patent lawsuits - between1995 and 2001, practising entities were getting an average of $6.3 million compared to non-practicing entities being awarded $5.2 million. Between 2002 and 2009, the practising entities fell to $3.9 million, while the non-practising entities soared to $12.9 million.
The impact of this is that with large companies spending mega-bucks on buying defensive patents investment in new technology must reduce, and with patent trolls and even the likes of Facebook, creating patents on what I consider to be commercial ideas, innovation due to the the threat of infringement will at best be hampered. Taking the argument to the "n'th" degree the reward will end up going to the already largest companies, such as Facebook, Google and Microsoft who can pump patents and stifle competition from whatever quarter.
Patent "Trolls" are busy applying for, and the US Trademark and Patent Office is granting, patents that appear to be just ideas and bear no commercial reality. The statistics on the value of infringement claims bears this out - according to PriceWaterhouseCoopers report on patent lawsuits - between1995 and 2001, practising entities were getting an average of $6.3 million compared to non-practicing entities being awarded $5.2 million. Between 2002 and 2009, the practising entities fell to $3.9 million, while the non-practising entities soared to $12.9 million.
The impact of this is that with large companies spending mega-bucks on buying defensive patents investment in new technology must reduce, and with patent trolls and even the likes of Facebook, creating patents on what I consider to be commercial ideas, innovation due to the the threat of infringement will at best be hampered. Taking the argument to the "n'th" degree the reward will end up going to the already largest companies, such as Facebook, Google and Microsoft who can pump patents and stifle competition from whatever quarter.
No comments:
Post a Comment