wireless mobile devices: the smartphone patent war

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Dr. Tal Lavian http://cs.berkeley.edu/~tlavian [email protected] UC Berkeley Engineering, CET Wireless Mobile Devices: The Smartphone Patent War

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Wireless Mobile Devices: The Smartphone Patent War. Dr. Tal Lavian http://cs.berkeley.edu/~tlavian [email protected] UC Berkeley Engineering, CET. Last Week: Recognizing Intellectual Property. Learn to view things within an IP framework: Recognize inventions - PowerPoint PPT Presentation

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Page 1: Wireless Mobile Devices:  The Smartphone Patent War

Dr. Tal Lavian

http://cs.berkeley.edu/[email protected]

UC Berkeley Engineering, CET

Wireless Mobile Devices: The Smartphone Patent War

Page 2: Wireless Mobile Devices:  The Smartphone Patent War

Learn to view things within an IP framework:Recognize inventions Be able to detect and avoid infringementDistinguish confidential information from general

knowledgePreserve confidentiality

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Last Week: Recognizing Intellectual Property

Page 3: Wireless Mobile Devices:  The Smartphone Patent War

Last Week: Characteristics of Wireless Mobile Devices

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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

Page 4: Wireless Mobile Devices:  The Smartphone Patent War

Last Week: Evolution of Cellular System

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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.

BSC

BSC

MSC

MSC

VLR

HLR

PSTN

OMC

AuC

EIR

Page 5: Wireless Mobile Devices:  The Smartphone Patent War

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

Page 6: Wireless Mobile Devices:  The Smartphone Patent War

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.)

Page 7: Wireless Mobile Devices:  The Smartphone Patent War

Device Architecture7

Page 8: Wireless Mobile Devices:  The Smartphone Patent War

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/

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Smartphone Patents Are Valuable

Page 9: Wireless Mobile Devices:  The Smartphone Patent War

• 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

Page 10: Wireless Mobile Devices:  The Smartphone Patent War

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

Page 11: Wireless Mobile Devices:  The Smartphone Patent War

Wireless Devices Relevant Technologies

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Smartphone designse.g., Tab

Page 12: Wireless Mobile Devices:  The Smartphone Patent War

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)

Page 13: Wireless Mobile Devices:  The Smartphone Patent War

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”

Page 14: Wireless Mobile Devices:  The Smartphone Patent War

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

Page 15: Wireless Mobile Devices:  The Smartphone Patent War
Page 16: Wireless Mobile Devices:  The Smartphone Patent War

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

Page 17: Wireless Mobile Devices:  The Smartphone Patent War

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

Page 18: Wireless Mobile Devices:  The Smartphone Patent War

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 producing

the infringing product e.g., Apple sued Samsung over Galaxy Tab

in 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.

Page 19: Wireless Mobile Devices:  The Smartphone Patent War

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 TexasDelawareNorthern district of California

European and Asian courts Most often with the aim to win an injunction in a

foreign market

Page 20: Wireless Mobile Devices:  The Smartphone Patent War

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 injunctionsSpeed – 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

Page 21: Wireless Mobile Devices:  The Smartphone Patent War

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?

Page 22: Wireless Mobile Devices:  The Smartphone Patent War

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

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