Are the patent wars stifling innovation?
According to a Bloomberg report, Google only has 728 patents, while Apple has over 4,000 and Microsoft stands tall with 18,000. This has led to Kent Walker, Google's legal counsel, claiming that "software patents are gumming up the works of innovation" in the same report.
He may be right--HTC was recently found to have violated two of Apple's patents and the final ruling may mean that HTC will be banned from being sold in the US. Grace Lei, HTC's general counsel, has stated that the company will "vigorously fight these 2 remaining patents through an appeal" and remains confident they have "a strong case for the ITC appeals process".
Apple claims HTC's smartphones are illegally using two of its patents.
(Credit: Apple)
The problem here is that while there's always the option of licensing the patent from Apple, the Cupertino company is certainly not going to settle for a pittance. Android's premise is that it is a free operating system (OS) that manufacturers can easily use in their handsets, but recent events--Microsoft asking for licensing fees--means the OS may not be free after all.
Google doesn't wield enough patents to force Apple and Microsoft to back away from Android, and its recent failure to buy Nortel's 6,000 patents from a consortium comprised principally of its rivals (Apple, Microsoft and RIM) means the search company is still in trouble.
That's not all that Google has to fend off, as Oracle is also asking Google to pay up as Android supposedly violates its Java patents. The suit is still ongoing, but the Mountain View-based company's refusal to pay the initial US$100 million licensing fee may see it coughing up US$6.1 billion in damages.
The search giant can probably afford this with its deep pockets, but Walker's earlier statement may prove true in the long run with companies being unable to create new products for fear of the huge legal costs involved.
Smaller developers in trouble too
The patent wars don't just end with the smartphone makers, patent "trolls" like Lodsys are taking advantage of the patent system to sue not only the big tech names, but small developers as well who may not have the resources to fight back. Besides Lodsys, Indian company Kootol Software has also sent notices to companies about its upcoming patent, though a report indicates that this troll isn't quite as scary for the big boys, although smaller developers may have reason for worry.
A report from the Guardian UK also says that these problems are causing developers to move their apps outside the US market rather than risk being caught up in a battle with Lodsys. It's a growing problem for smaller developers, as Apple, Google or Microsoft may not have the legal standing to protect their developers.
(Credit: Twitter)
According to Bryan Tan, a technology lawyer and Director at Singapore-based law firm Keystone LLC, this depends on whether Lodsys has registered their patents in other countries or have made an "international application under the Patent Cooperation Treaty".
"Once there are judgements in favor of enforcing a registered patent, it would be very hard to overturn or revoke the patent," he added.
This means that in the event that Lodsys scores big in its suit against developers and proceeds to apply for an international patent, they will be able to file lawsuits against developers in other countries, too. Maddox may have removed his apps from the US market, but he still won't be safe if Lodsys prevails in the US courts.
About the author
Aloysius Low is a Senior Writer at CNET Asia and covers all things mobile. A former World of Warcraft addict, he now dabbles in social media to stave off the withdrawal symptoms. As a lover of all things furry, he's also the unfortunate slave/minion of two adorable cats.
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