Software Patents and Smartphone

Litigation

Android = Open Source =

Free, right?

•Microsoft receives royalties for each Android Device (70%)

•HTC, Samsung, LG, Pantech e.g. $5+ per Device

•Apple, Samsung, Google and Microsoft are now engaged in over 100 patent lawsuits in at least 10 different countries

Essential LTE Patents

LG, 23% , $7.9 billion. Qualcomm, 21%, $7.3 billion. Motorola Mobility (Google), 9%, $3.3 billion. Interdigital, 9%, $3.3 billion. Nokia, 9%, $3.1 billion. Samsung 9%, $3.1 billion. ZTE 6%, $2.1 billion. Nortel 4% Value of $1.35 billion. Ericsson 2%, $600 million. Research In Motion 1%, $400 million. Huawei 1%, $200 million. Freescale, 1%, $200 million. NEC, 1%, $200 million.

Technologies

•Design Patents

•Operating System Patents

•User Interface Patents

•Software Feature Patents

•Hardware Patents

•Data compression

Example of Types of Patents

• Operating System

• User Interface

• Software

• Design Around Issues

• Hardware

• Semiconductor/Supplier Issues

• Wireless

• Large Scale Litigation

Wireless Patent Wars

• Apple, Samsung, Google and Microsoft are now engaged in over 100 patent lawsuits in at

least 10 different countries• Apple

• Design Patents• Hardware/Software but not wireless (e.g. LTE)• Royalty Payments (entered market in 2007)

• Microsoft • receives royalties for each Android Device (70%)• HTC, Samsung, LG, Pantech e.g. $5+ per Device• May lead some manufacturers to an alternate platform (e.g. Windows 7)

• HTC• Relatively new with few patents however still has 8% Market share increase

• Qualcomm/Nokia/LG/Ericsson• Standardization patent issues

Other Considerations

• Patent Cost to defray licensing cost to enter the market

• Essential Role of Patents

• Ericsson announced Chief Intellectual Property Officer will report directly to the CEO