Autonomous vehicles were designed with the purpose of minimizing accidents on urban roads and providing more safety and comfort, assisting or performing independently some tasks that are the driver’s responsibility. The Society of Automotive Engineers (SAE) has developed a classification of autonomous vehicles, creating six categories for autonomous driving. Level zero refers to conventional cars without any technology of this type, while at the other extreme, at level five, the driver becomes a passenger, needing only to activate the vehicle and indicate the destination. In such case, it is up to the vehicle control system to carry out in a fully autonomous way the driving of the vehicle throughout the route and to carry out any emergency decision-making. The intermediate levels of autonomous driving include systems already found on the market, such as parking assistance, emergency braking and lane change assistance, among others.
Autonomous vehicles are paving the way as the next big innovation in personal transportation. With new technology, first comes the excitement of breakthroughs in any industry. Then comes the patent litigation arguments over who owns the technology and who can profit off the patents related to the technology. We are seeing this pattern again and perhaps the beginning of the self-driving cars patent wars. Earlier this year, the U.S. Court of Appeals for the Federal Circuit upheld the patentability of all challenged claims in a patent held by Velodyne LiDAR, Inc., one of just a handful of companies that makes LiDAR (light detection and ranging) systems for self-driving cars.
On August 16, the National Highway Traffic Safety Administration (NHTSA) announced that it had opened a probe into Tesla’s driver-assistance technologies after it identified 11 crashes since 2018 in which a Tesla vehicle had struck an emergency-response vehicle. All Tesla vehicles involved had been using the automaker’s Autopilot feature at the time of the crashes, which enables the vehicles to steer, accelerate, and brake automatically. The crashes have attracted the scrutiny of lawmakers and regulators of Autopilot and similar technologies. With increased attention being paid to AV safety, AV companies are shifting their research and development and IP strategies toward technologies designed to address consumers’ real-world safety concerns.
Later this year (likely in October), the United Kingdom’s highest court will hear arguments on questions arising in two disputes concerning standard essential patents (SEPs). The UK Supreme Court has agreed to hear appeals in Unwired Planet International Ltd and another v Huawei Technologies (UK) Co Ltd and another UKSC 2018/0214 and the joined cases Huawei Technologies Co Ltd and another v Conversant Wireless Licensing SARL UKSC 2019/0041 and ZTE Corporation and another v Conversant Wireless Licensing SARL UKSC 2019/0042. The arguments are likely to focus on one question: can a national court impose a global license in SEP cases? The closely watched appeal will be the culmination of years of litigation between the parties. In the Unwired Planet case, Mr. Justice Birss of the High Court heard five trials on the validity and infringement/essentiality of Unwired Planet’s patents. In April 2017, he then gave a mammoth judgment determining what a fair, reasonable and non-discriminatory (FRAND) license would be, and setting royalty rates. Critically, he found that only a worldwide license would be FRAND in the circumstances of this case. The England and Wales Court of Appeal upheld this conclusion, in a judgment in October 2018. The Supreme Court will likely sit in a five-judge panel in a hearing that will last about two days and will be live streamed on its website (the date and panel details have not been confirmed yet). It will hand down judgment later this year or early in 2020. (Ironically, patent specialist Lord Kitchin is a member of the Supreme Court but will not be sitting in this case as it is his own judgment that is under appeal.) You might have thought that—after decades of legal debate and academic writing, dozens of judgments addressing questions such as what constitutes a FRAND license and what are reasonable royalties, and extensive discussions between technology companies—the questions around SEPs would be close to being resolved. But that is far from the case. The outcome of the UK Supreme Court hearing, for instance, will have an impact on negotiations between owners of SEP portfolios and implementers worldwide, at a time when standards are set to become critical to many more industries.
We have seen it with respect to the largest tech companies entering the banking market, and now we are seeing it with tech companies entering the automotive industry. In this free webinar we will just the automotive industry as an example as to how one can identify non-traditional competitors entering traditional markets.