Posts Tagged: "NPE’s"

The Subcommittee is Chaired by Congressman Darrell Issa (R-CA), who has been an outspoken advocate for the need for more patent reform in order to provide relief from those he believes are abusing the patent litigation system — those sometimes called patent trolls. Indeed, from the start of the Thursday’s hearing, the debate regarding patent infringement at the ITC was couched in the language of the patent troll debate. For example, during his opening statement Congressman Issa rather imperiously stated: “for purposes of my opening statement ‘plaintiff’ and ‘troll’ will be interchangeable.” Issa, himself a patent owner, was forced to litigate against companies that pirated technology covered by his patents. As a patent owner forced to sue at numerous infringers, it would seem that Congressman Issa believes that patent owner and inventor Issa was a patent troll.

5G is expected to generate even higher revenues from applications and services due to explosion on mobile application and services because of broadband-like speed, which are crucial for some of the emerging technologies like IoT, Wearables and Virtual/Augmented Reality. Revenues for 5G services will exceed $65 billion by 2025, according to a forecast from Juniper Research… The number of patents and key underlying technologies for 5G mobile networks will evolve significantly within next 5 years. However, early analysis shows that Qualcomm will still be the IP leader but may be not as dominant as in 4G-LTE. The device makers like Apple, Samsung, and Lenovo are also working on 5G IP development in order to minimize IP licensing costs.

On Tuesday, March 22, 2016, IAM will host NPE 2016: The Business of Responsible Licensing in New York City. This all day event will feature moderator-led panel discussions on all thins NPE. I will be moderating a panel on opportunities beyond the United States, which will focus primarily on Europe and China. Other panels on the program will discuss the mechanics of running an NPE, licensing negotiations, IP commercialization and moving into new sectors.

With an increase in the number of patents being issued for clean energy technologies, it’s not surprising to see predictions of increased patent litigation in the sector. Patent infringement cases in the clean energy sector have already involved many of the industry’s top companies, including Westinghouse Solar, Zep Solar, DuPont (NYSE:DD) and SunEdison. Although patent issuances have exploded in that field, the market isn’t nearly as crowded as smartphones and other industries where a much higher number of patents have issued, making those sectors more visible to NPEs. With the renewed calls for both private and public investment into clean energy R&D in the wake of the Paris climate change conference, it’s clear to see that intellectual property owners who can successfully navigate the patent market could make significant financial gains.

Libertarians believe in property rights and government protection of those rights as one of the few necessary requirements of government. Ownership of property and free markets leads to competitive production and trade of goods, which in turn leads to prosperity for all of society. Intellectual property is property like other forms of property, and so government must protect IP as it protects other forms of property because it too leads to competition and trade and prosperity. Libertarians should encourage a strong patent system and object to any “reforms” that limit intellectual property ownership or introduce more government regulation than is required.

What may be less well known is that Octane was not itself a “patent troll” case. Rather, Octane involved another kind of abusive patent litigation; namely, a large company asserting a patent it pulled “off the shelf” against a small start-up competitor. While patent trolls gain economic advantage through economies of scale, large companies have economic advantages over smaller competitors by virtue of their size and resources, and can similarly abuse the system. They can use the high cost to defend patent litigation as a competitive weapon, either to force the smaller competitor to exit the market, discontinue a product line, or pay an unwarranted royalty (thereby hindering the competitor in the marketplace). On remand, the District Court in the Octane case recognized just this sort of economic coercion, and found the case exceptional warranting a fee award. And last week, the District Court awarded almost $2 million in fees and costs to Octane, the prevailing accused infringer.

A new PricewaterhouseCoopers 2015 patent litigation study, released today, points to a 13% drop in patent lawsuits filed in 2014. That’s right—patent cases more than doubled from 2009 (2,792) to 2013 (6,497) and then sharply dropped (5,686) in 2014. What is more incredible is that the report credits the Supreme Court’s recent decisions for the decline in patent litigation.