Posts Tagged: "crowd sourcing"

Right now the best business to be in at the moment is the patent enforcement business, at least if you are concerning yourself with low-risk monetization with high reward. Between the legacy issue of bad patents, patent auctions and the many who purchase patents, what has started to happen is that the patent system rewards those who have the finances and ability to game the system. But the problem is extraordinarily complex.

Today there is a different solution for those who need to find that particularly illusive non-patent literature that typically makes up the best, most damaging prior art.  Rather than conduct the search around ever corner and under every stone you can leverage the knowledge of a global network of highly educated and highly trained researchers. Essentially, you can tap into their specific knowledge and stores of information by engaging the power of crowdsourced patent searching.

AOP, the world’s largest patent research community, has passed another significant milestone. This time the company has passed the $3 million threshold in financial rewards paid to its global research community. Actually, the milestone was reached at the end of August 2012, but AOP only officially made the announcement last week. In fact, as of the writing of this article the reward calculator found prominently on the AOP homepage shows that some $3,371,500 in reward money has been paid to its community of crowdsourcing researchers.

Article One Partners has just reached the $3 million milestone, having given out over $3 million to its cadre of researchers. Currently the total sum awarded by Article One is at $3,049,000 and counting, with some $64,000 being awarded to the winners of closed Studies on August 24, 2012. Some current Studies now carry a $10,000 Reward compared with the more usual $5,000 Reward.

Article One Partners, or AOP for short, is the world’s largest patent research community. Yesterday the company announced a partnership with Sony Corporation. AOP is supporting Sony’s defense against the rising trend in patent disputes with non-practicing entities (NPEs). “We have chosen to expand our prior art research capabilities with Article One Partners and their global community of researchers,” said Fumihiko Moriya, VP, Sr. General Manager, IP Alliance & Licensing Dept., IP Division, Sony Corporation. “Our partnership with Article One enables Sony to identify highly relevant prior art to help defend against an increasing number of low-quality patent assertions.”

As a result of this announcement today, AOP will help Appsterdam accomplish the organizations mandate of supporting ongoing innovation and business success in the mobile app development community through research projects sent to its global, diverse and highly educated community. The Appsterdam Foundation attorneys and developers will work with AOP to conduct patent research, harnessing the global reach of the AOP community, which has been used by many Fortune 500 companies to locate prior art that can be used against patents asserted against them. While note every search conducted by Article One results in prior art that can be used to invalidate patent claims, many searches have found prior art that is then used in both federal court and at the United States Patent and Trademark Office during reexamination proceedings.

The question may arise – what if the result of crowdsourcing is less than the proverbial “smoking gun,” can it place the App Developers at a disadvantage in court? Case law indicates that the answer is no. Last year, in a patent litigation brought by Personal Audio LLC, the plaintiff attempted to argue that their patent was valid based on crowdsourced research and to seek discovery on this basis. Personal Audio lost on both counts, with federal Judge Miriam Cedarbaum concluding, “eliminating a negative doesn’t show validity” and commenting on the patent owner’s approach with the statement “that’s what I call desperation.” Transcript of Oral Argument and Decision at 12-13 and 14, Personal Audio LLC v. Sirius XM Radio, Inc. et al, No. M8-85 (S.D.N.Y. Nov. 2, 2010).

Article One Partners is at it again, this time with four patents in the cross-hairs owned by the company suing Apple App Developers for patent infringement — Lodsys. Article One Partners has made a name for itself as the premiere crowd sourcing, prior art locating company in the world. Now they have three different studies aimed squarely at the four Lodsys patents, which were just used earlier this week to sue the New York Times and others, and earlier still against Best Buy, Adidas, CVS and others. Indeed, it seems that Lodsys is becoming quite a nuisance for defendants, which places them at or near the top of the patent troll most wanted.

On Monday, March 7, 2011, Article One Partners announced that it had surpassed the $1 Million milestone and has now distributed over $1 million in reward money to Advisors. It would seem that Article One Partners is growing and thriving, and that my initial reaction to the Article One Partners business model was incorrect. In fact, Article One Partners is likely just scratching the surface of its potential and demonstrating the power of coordinated crowd sourcing solutions.

Erik Iverson is Associate General Counsel with the Bill & Melinda Gates Foundation, working exclusively with Foundation’s Global Health initiate. Mr. Iverson works with grantees in the development of intellectual property management plans, collaboration agreements and global access strategies with respect to the health solutions being funded by the Foundation. During our conversation Iverson and I talked about how the Gates Foundation seeks to incentivize innovators, as well as foster and respect intellectual property rights while at the same time engaging in what by its very nature is a humanitarian effort.