Patent technologies are important to lead the market with new products and new technologies. Learn about technology leadership, patents, not just rights to technology, but also future growth engines.
Ever since the first patent law was introduced, there have been disagreements and quarrels over patents. The rise of international trade has led to the formation of a single global market and an ever increasing number of companies are now introducing new technologies and products. Meanwhile, the convergence of technologies has made it difficult to predict future development directions, whilst businesses must also capture new markets in order to achieve sustainable growth. All of these changes have made patented technologies a key source of competitiveness. It is no exaggeration to say that the future of any company depends on them.
What is a patent?
A patent is a right granted to an inventor by the government that permits the inventor to exclude others from making, selling or using the invention for a period of time. In addition to offering legal protection, a patent encourage new inventions by making new inventions public. Patent law requires inventors and companies to apply for patents before making a public disclosure. Legal protection cannot be provided for inventors unless a patent is granted.
However, patents are not granted to all inventors. New inventions must meet a number of requirements such as industrial application, originality and non-obviousness. For an invention to qualify for a patent, it must be both “novel” and “not obvious”. An invention is novel if it is different from other similar inventions in one or more of its parts. Once granted, a patent lasts for 20 years from the application date. Patent law follows territorial principles which means patent applications need to be filed and granted separately in each country for legal protection.
Importance of patented technologies
Today, intangible assets such as patents, copyrights and design competitiveness serve as the source of national competitiveness. This is true for leading global companies who account for more than 80% of their value based on such assets. For example, Qualcomm is famous for achieving tremendous business growth developing CDMA wireless communication technology and licensing the associated technology patents to manufacturers. Qualcomm’s business model relies on sustained investment in R&D to maintain its technological leadership, using profit generated from its patent licensing. It is known to receive a significant CDMA technology patent license fee of 5% of the price of a mobile phone from mobile phone manufacturers.
Famous patent infringement cases
Instant camera Polaroid vs. Kodak
In 1976, Polaroid sued Kodak, which supplied instant photographic films to Polaroid, for patent infringement
Result : Kodak was ordered to pay 925 million USD to Polaroid and incurred estimated business losses of 3 billion USD
Design Apple vs. Samsung
Apple accused Samsung of violating its patents including round edge design and LCD-screen boundaries
Result : Samsung was ordered to pay damages of 550 million USD, which included 100 million USD in legal fees
Hybrid electric car PAICE vs. Toyota
PAICE LLC, a Non-Practicing Entity, sued Toyota for infringement relating to hybrid technology
Result : Toyota agreed to pay damages of 4.27 million USD and 98 USD per hybrid car after four separate lawsuits
Aramid fibers Dupont vs. Kolon
Dupont, a USbased chemical company, sued Kolon Industries, a South Korean company, for patent infringement involving a fiber used to make Kevlar bulletproof vests
Result : Kolon agreed to pay 275 million USD to Dupont and 85 million USD in fines
*Non-Practicing Entity(NPE): Also referred to as a “patent troll”, an NPE buys a patent portfolio from a company in order to sue another company by claiming that one of its patents is being infringed.