Global Patent War and Changes to Competition (SERI, Oct.'11) 머릿속

PARK Chan-Soo of SERI

(Summary of the article)

1. Spreading Patent War
- Two outstanding acquisitions in 2011 : Apple acquired Nortel who possesses 6,000 telecommunication patents, and Google acquired Motorola Mobility, a maker of handsets and 17,000 patents.
- The number of patent litigation was 700 cases a quarter in the US by 2009, and it reached 1,000 in the fourth quater of 2010.
 
2. Changing Patent Businee Environment
- Patents are regarded as business assets. Not only market players but universities and research institutes are pursuing revenue from their patents.
- Patent business models are evolving. They have become more segmented and specialized. Patent-backed financial products made patent an intengible asset. Patent litigation services has started to surface to recieve contingency-based fees.
- NPE(non-practicing entity) have come into the spotlight. Patent owner does not need to be manufacturer  because patent itself can earn money from license or it could be sold to any other manufacturers.

3. Patents and Changing Landscape of Major Industries
-In smartphone industry, patent fighting has spread to business ecosystem. Apple and Microsoft filed patent litigation against cell phone manufacturers like Samsung Electronics. Companies have been actively pursuing M&As to expand their patent portfolios.
-In semiconductor Industry, rapid growth of NPEs accelerates restructuring the industry by making other players have joint responses through patent risk management funds.
-In LED industry, patent lawsuits have intensified with growing markets for LED-application products.
 
4. Implications
- Companies should establish a system which uses patents as business assets.
-To effictively respond to NPEs' offensives, manufacturers should cooperate with each other.
- For large-scale government R&D projects, patent factor must be included.