Posts Tagged ‘google’

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By: Mark R. Malek

Many times during a patent consultation I will hear a very common line used by many inventors.  “This must be patentable, because there’s nothing like it out there.” My first response is usually “where did you look?”  The issue is that the very idea you came up with might not be found at the local Wal-Mart or Home Depot.  That does not necessarily mean that it is not “out there.”

Think of this – there are over 8,000,000 patents out there.  That’s just the issued patents.  As you probably know from many of the stories that we have done on the patent application backlog (see past stories here, here, and here) so, as you can imagine, the number of patent applications pushes the amount of “prior art” out there even higher.  At the time of this article, the patent dashboard indicated that the number of patent applications that need to still be examined are 671,409.

The point is that it is not sufficient to just assume that since you cannot purchase one, it has not been invented.  There are several different places to do some research when you first invent something.  For example, two of my favorite sites to look at to do some initial patent searches are Google Patents and FreePatentsOnline.  These are great places to get started on your patent searches.  Many times, this exercise will help an inventor to narrow down the invention.  For example, the inventor may have come up with a broad concept of some sort, e.g., a u-turn signal for a car.  That is a very broad idea and, as such, upon initially searching for this invention, one would notice a great number of patents that are already issued for it.  The next step is to look at all of those patents, and figure out what makes your invention different.  Another great place to do some patent searching is the Patent Office’s website.  There is a quick search available and an advanced search available as well.  I like the advanced search because it allows the inventor to search by classifications and art units.  When all else fails, just do a simple Google search and see what people are posting on the internet.

For great information on patent searching, see this article on IPWatchdog written by Gene Quinn.

 

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The Wall Street Journal interviewed Google’s patent counsel, Tim Porter. Below are some highlights, and my awesome commentary (this is a blog after all).

In the context of Android’s rise to power, and a plurality of the smartphone market, WSJ asks Porter about the ongoing litigation surrounding Android and Google, and his thoughts on our patent system, generally (SPOILER ALERT – he thinks it sucks).

Google has sued by Oracle, Apple and Microsoft. Porter has to deal with that.

On Microsoft’s pressuring for licensing agreement: “When their products stop succeeding in the marketplace, when they get marginalized, as is happening now with Android, they use the large patent portfolio they’ve built up to get revenue from the success of other companies’ products.”

I agree. Porter’s statement is probably conventional wisdom. Microsoft’s response is probably along the lines of: ‘we have legitimate patents, and we have every right to use them.’ Also fine. Don’t hate the player, hate the game.

On patent litigation discouraging innovation: “You didn’t see Microsoft’s first software patent until 1988. By that time it had come out with Word, not to mention DOS . . . you can look back and see that innovation happens without patents. It’s also true that since there weren’t patents, there wasn’t software patent litigation.”

Software patents bother a lot of people. There’s a meme on Slashdot.org where if you add “on a smartphone” you can get a patent granted. This of course follows the “on the internet” meme of several years ago, and probably the “on a BBS” preceding that.

On whether software should be patentable? “[U]ntil 2007, when the Supreme Court finally said that the patent examiners could use common sense. Patents were written in a way that was vague and overly broad. (Companies are) trying to claim something that’s really an idea (which isn’t patentable). There are only so many ways to describe a piston, but software patents are written by lawyers in a language that software engineers don’t even understand.”

Presumably, Porter’s referring to KSR Int’l Co. v. Teleflex, Inc., 550 U.S. 398 (2007). (Google it). What Porter’s doing is blaming lawyers for the system which provides his (and most lawyers) primary basis for employment. You’re not alone, Tim Porter! I happen to think that most of the justice system is broken too! And yet I come to work each day and love every minute of it. How do we manage?

Q: What’s an innovation worth protection and what’s just fodder for patent trolling? “The legal system should say you shouldn’t patent something that’s obvious. . . Patents are supposed to be a form of property. The property system doesn’t work if you don’t have clear boundaries.”

We already do have an obviousness rule. Clear boundaries would make things easier, but might not be as just. I’d like to see a proposal for something that creates a bright-line rule and retains due process.

Q: On Microsoft’s lawyer saying that the current patent lawsuits are unfortunate, but a normal historic event that follows disruptive technologies. Paraphased: it didn’t happen to Microsoft when they were young and hungry, and the last time it happened (during the age of steam) it resulted in stagnation until the patents expired. He ends with, “So what I think we’re hoping to avoid is this intense focus on litigation to the degree that we all stop innovating.”

Porter seems to be calling Microsoft’s lawyer’s BS. I don’t know about the history of steam engine patents, but I do agree that Microsoft didn’t have this kind of litigation to deal with 25 years ago. There’s no way in hell we’re all going to stop innovating. Ain’t gonna happen. There’s still plenty of money to be made, regardless of patent litigation and regardless of infringement. Stifling innovation seems probable though.

Q: Why’s Google buying so many patents all of the sudden? “Google is a relatively young company, and we have a smaller patent portfolio than many others. So it’s certainly true that part of our intent in buying these portfolios is to increase our ability to protect ourselves when people assert patents against us or our partners.”

Obvious questions get obvious answers. See KSR Int’l Co. v. Teleflex, Inc., 550 U.S. 398 (2007).

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We’ve talked about the patents Google bought from IBM, but we’ve been guessing at to the value and usefulness of those patents. An analysis by IPVision, which makes patent-analyzing software, suggests that the patents won’t be much of a sword or a shield in the IP cold war against Apple and Microsoft regarding its Android OS. The key to defensive value in patents is bundling groups of patents together to cover as many facets of a device as possible. With the rise in mobile computing litigation, patent poor companies like Google have been increasingly desperate to assert themselves. IPVision doesn’t think that the IBM patents will help much – but that doesn’t mean there aren’t other uses for that IP. Could it be that maybe, just maybe, Google wants to innovate and needed some IP rights to achieve its goal?

All that IP litigation has not been without results. Apple has blocked sale of Samsung devices in much of Europe, and Microsoft has won millions in licensing fees (including from Samsung), just to use Google’s quote unquote free Android OS.

Google’s patent portfolio is growing, but is still leagues behind bluebloods like Microsoft or Apple. Google certainly has the money to ramp up R & D, which I don’t even need to google to find out, but developing technology and protecting takes time, and a degree of luck.

According to Technologyreview.com:

At first glance, the patents Google bought from IBM look good. The U.S. patent office maintains a set of subject categories used to sort patents, and most of those acquired from IBM spread across the “700 series,” where new software ideas and techniques are to be found.

Google’s prior patent portfolio is still mostly related its breach and butter business: database and information retrieval techniques. Buying the IBM patents was supposed to extend Google’s reach, but probably even more so to protect it from lawsuits. The IBM patents, according to Hoo-Min Toong, cofounder of IPVision, seem to be “one-off patents” that mostly aren’t related to one another, and are therefore much less valuable. Instead of a wall, Google may have bought bricks without mortar. Toong says that many of Apple and Microsoft’s patents built off of the IBM patents, but that it would take a lot of doing for Google to assert that they infringed on its IBM trove.

As I discussed last week, there are other options in the mobile computing patent world. Google could look to buy patents from declining companies like Nokia or RIM, but the key remains looking to what’s next. Google may be on the defensive now, but in ten years, they could be a has been like Yahoo, if they don’t innovate and adapt.

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Big tech companies see mobile devices as their future.  I can reach no other conclusion, given the recent patent buying-sprees. Every big tech company has gotten into it: Google, Apple, and Microsoft (among many others) have spend tens of billions buying tens of thousands of patents, most of which are related to mobile devices. The sellers are mainly has-beens, including Verizon, Nortel, Motorola, Rim, and Novell. IBM also sold a trove of patents to Google, but they’re no has been.

Another big tech company has recently broadened its business model — Amazon. With the Kindle (whose success perplexes me), Amazon dipped its rather large pinkie toe into the mobile device waters. Now, Amazon has released the Fire, a tablet device with which Amazon is has inched closer to competing with the vaunted iPad.

Now, make no mistake, the Fire is no iPad, but I don’t think Amazon wants it to be. These days, once you compete with Apple, you lose. There’s no such thing as an Apple, except an Apple. But if you’re on the periphery, or somehow create a new niche, you have a chance. Enter, the Fire. But mobile devices need intellectual property protection to stand a chance when billion dollar IP lawsuits are being tossed around.

Amazon has been beefing up its patent portfolio, including singing a huge and vital licensing agreement with Microsoft in 2010. Now, Amazon may be looking to expand further by buying another tech has been, Palm.

Last year, HP bought Palm for $1.2 billion, but HP has been losing money on mobile device unit for the last year and is looking to unload. Hilariously, an executive VP at HP said at the time that Palm would “create a unique H.P. experience spanning multiple mobile connected devices.” I am now sitting at my laptop, thinking, “I am having one hell of a unique Toshiba experience.” But I digress.

Might Palm be bought at a bargain rate? Venturebeat.com has reported that Amazon and HP are in “serious negotiations”, that there are other potential buyers as well. Palm is said to have a nice patent portfolio, which Amazon will need to defend against the lawsuits which are all but pending (because when aren’t they?).

Someone named Jordan Rohan (“ . . . a sword-day, a red day, ere the sun rises!”) from some company called Stifel Nicolaus even said:

I don’t think anyone believes that Apple and Amazon will not have significant competitive skirmishes in the future . . .  The value of I.P. related to mobile has gone up—even if there was no palm devices in the future, it would still be valuable.

Yep, he thinks Apple and Amazon will sue each other and that the already high value of mobile IP will continue to rise. Pray that Mr. Rohan didn’t get paid for his prophesy.

It’s all funny money for big tech firms, but Amazon is right to be in the game. If you ain’t got patents, you ain’t got nuthin in the mobile device wars.

 

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Scott Nyman

 

Who will be the next tech company to sell a portion of its patent portfolio for cold hard cash? If you own stock in Research In Motion, makers of BlackBerry smartphones, you may have a horse in the race for patent sellout victory. The former smartphone leader has seen its stock prices plummet by nearly half during the last six months. Couple this with the fact that only 11% of smartphone sold in Q2 of this year can be found running BlackBerry OS. Compare this to Google’s hotly litigated Android OS, which enjoyed a dominance of 52% of devices sold, and Apple’s iOS, with 29% of sales in the same period.

One of RIM’s investors, Jaguar Financial, has been calling for for RIM to auction off a portion of its patents in hopes of a  Motorola sized payout. It appears that investors are losing faith in RIM to pull the business back together. Jaguar chairman and CEO, Vic Alboni, has stated publicly, “What if these products don’t pan out? You don’t want RIM to turn into another Nortel.”

In my opinion, I am not convinced we will continue to see the high payouts for patent collections that we’ve been witness to the last few months. Google has what it needs, and perhaps has wanted all along, a rich portfolio of mobile patents to defend itself against litigation. And, although Google could probably buyout the United States if it wanted, it has already spent nearly half the GDP of Vermont on it’s Motorola Mobility Investment. Also, considering that Microsoft and Apple paid billions more for Nortel’s patents than their estimated worth, they’re not likely to part with another few billion, either.

RIM appears to be wise to the fact that selling off its valuable patent portfolio may only provide a short term bump, while hastening the decline of the former smartphone giant. I’m no stock-savvy investor, but I can only bet investors like Jaguar are hoping for a quick spike in stock prices so they can dump their shares with minimal loss. Hang in there RIM,  keep innovating and find a way to build a real library of apps.

 

More Reading:

NPD

Mobile Media

Business Insider

 

(Disclaimer: I do not own and have no intent to purchase stock in RIM)


THURSDAY, MAY 17, 2012

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