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Published on : Feb 10, 2014
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Slide 1 - Dr. Tal Lavian http://cs.berkeley.edu/~tlavian tlavian@cs.berkeley.edu UC Berkeley Engineering, CET Wireless Mobile Devices: The Smartphone Patent War
Slide 2 - Learn to view things within an IP framework: Recognize inventions Be able to detect and avoid infringement Distinguish confidential information from general knowledge Preserve confidentiality 2 Last Week: Recognizing Intellectual Property
Slide 3 - Last Week: Characteristics of Wireless Mobile Devices 3 Wireless Limited bandwidth, high latency Variable link quality (noise, disconnections, other users) Heterogeneous air interfaces Mobility: User and terminal location dynamically changes Speed of terminal mobility impacts wireless bandwidth Portability Limited battery capacity, computing and storage Small dimensions More Signal Processing More Protocol Processing Higher Energy Efficiency
Slide 4 - Last Week: Evolution of Cellular System 4 First generation: Analog – Voice Analog modulation, cellular phone (AMPS) with manual roaming Second Generation: Digital Voice & Data Digital modulation Cellular and PCS phones with seamless roaming, integrated paging Third Generation (3G): Digital Multimedia Unified digital access, voice, data, video music, gaming, m-commerce, sensor etc.
Slide 5 - This Week: Smartphone Patent War We will take an in-depth look at the many different battles comprising the patent war, including Who’s suing who Over what technology And for what possible reasons We will also discuss alternatives to litigation, such as licensing IP
Slide 6 - Smartphones – what are they? 6 Small size, light weight, easily fitting in palm and pocket Display screen with touch input and small virtual key board Also known as portable handheld device or handheld device (e.g. Smartphone, PDAs etc.)
Slide 7 - Device Architecture 7
Slide 8 - Smartphone is a radical technology change with a lot of money at stake and growing. Source: http://www.project-disco.org/intellectual-property/one-in-six-active-u-s-patents-pertain-to-the-smartphone/ 8 Smartphone Patents Are Valuable
Slide 9 - Smartphone is a radical technology change with a lot of money at stake and growing. Patent war is a major tool to slow down the competition and get better market share Very large business…and growing Apple, Google, Motorola, LG, HTC, Microsoft, Nokia…. Extremely expansive litigation, with a lot of risk Time is critical - slowing down the competitors Smartphone Patents Are Valuable
Slide 10 - Smartphone Patent War Overview Similar to the GSM patent war of the 1990s, there is currently a patent war stirring up the mobile telecommunications market Major actors include Apple, Microsoft, Google, HTC, LG, Samsung, Motorola, Nokia, (Oracle,) and others Great example of companies leveraging their IP to obtain a competitive edge
Slide 11 - Wireless Devices Relevant Technologies 11 Smartphone designs e.g., Tab
Slide 12 - Wireless Devices Relevant Technologies (cont.) Operating systems e.g., Microsoft  Barnes and Noble over Android in Nook ebook reader Patents involved: #5, 778, 372 – “Remote retrieval and display management of electronic document with incorporated images.” #6, 339, 780 – “Loading status in a hypermedia browser having a limited available display area.” #5, 889, 522 – “System provided child window controls.” Microsoft also involved in many licensing deals with OEMs Means of avoiding litigation for both parties (otherwise Microsoft would assert software patent rights in court)
Slide 13 - Smartphone Patent War –When Did It Begin? Patent litigation concerning smartphone technology began in late 2009 Nokia sued Apple over 10 patents Apple countersued Nokia for infringement of 13 patents Notice the “eye for an eye” mentality in patent litigation Nokia-Apple litigation quickly expanded from district courts to the International Trade Commission Also opened the door for other companies to sue competitors for smartphone patent infringement “Opening salvo”
Slide 14 - Smartphone Patent War – Who’s Involved Apple vs. HTC: 20 software patents ELAN vs. Apple: touchscreen patents Oracle vs. Google: Java patents Qualcomm vs. Nokia: 3G tech. Apple vs. Nokia: data and speech coding Nokia vs. Apple: 2G, 3G and Wi-Fi tech. This list is not exhaustive
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Slide 16 - Smartphone Patent War – Who’s Involved (cont.) Smartphone patent war also includes actors not directly involved with the smartphone industry Kodak First attempted to assert patent rights in court in order to raise capital from licensing to smartphone manufacturers Eventually sought to sell patents to avoid bankruptcy Some think litigation was actually a means of marketing their patent portfolio Non-Practicing Entities (NPE) i.e., companies that assert patent rights but do not make the inventions they own the patents for themselves
Slide 17 - Smartphone Patent War –Different Actors, Different Motivations Motivations for resorting to patent litigation are often multi-pronged: Principle – patents rights have been infringed, not going to tolerate it e.g., Apple suing Samsung over iPad design infringement Damages – plaintiffs in patent cases can recoup profits lost due to infringement, sometimes treble (3x) damages if judge finds willful infringement
Slide 18 - Smartphone Patent War –Different Actors, Different Motivations (cont.) Injunction – if product found to infringe, court can order injunction against manufacturer Essentially, a mandate to stop producingthe infringing product e.g., Apple sued Samsung over Galaxy Tabin Germany, won an injunction that forbade Samsung marketing it Licensing – sometimes if a competitor wants to use your IP, you let them pay you to do it This has largely been Microsoft’s strategy throughout the patent war Arguably mutually beneficial: one side gets access to competitor’s IP, while competitor need not manufacture to profit from IP.
Slide 19 - Smartphone Patent War – Jurisdictions The smartphone patent war is a global span of litigation taking place in various courts, including: U.S. district courts Most patent cases in the United States are heard in Eastern district of Texas Delaware Northern district of California European and Asian courts Most often with the aim to win an injunction in a foreign market
Slide 20 - Smartphone Patent War – Jurisdictions (cont.) International Trade Commission (ITC) Quasi-legal venue where many patent cases are heard Two reasons plaintiffs often file complaints to the ITC: While not having the ability to award damages, it can grant injunctions Speed – proceedings are usually much faster than in district or appellate courts http://www.macobserver.com/tmo/article/itc-judge-apple-did-not-violate-any-samsung-patents
Slide 21 - Smartphone Patent War – Questions To Ask Are there more mutually profitable alternatives to “patent wars”? Cross-licensing? Patent pools? What effect does such litigations have on consumers? the market? innovation? When will it be “over”? Bankruptcy? Product bans?
Slide 22 - Summary Value of smartphones and related tech to developing market The smartphone patent war: Began with Nokia and Apple in 2009 All players involved Global courts, Texas, Delaware, California… and the ITC 22