Smartphone patent wars will be fuelled by smarter technology say experts

UK

10 October 2012

The smartphone patent wars will "go on and on". That was the opinion of a panel of experts speaking at the London Patent Summit 2012 which took place yesterday.

In a special case study during the event, speakers ranging from in-house counsel for large tech companies, to IP experts and patent brokerage firms said smartphones are set to become all pervasive and will fuel years of IP litigation still to come.

"Already 50% of people in the UK own a smartphone device," said John Prior, senior vice president of ICAP Patent Brokerage. "These devices are all encompassing and will have more and more uses in the future. People will use them for banking, for using as tickets on the train, even ordering coffees at a Starbucks... so the patent wars will not slow down."

The London Patent Summit 2012, which took place between 8-9 October at the London Stock Exchange, was the first event in what is hoped to become an annual gathering of patent professionals. Its aim is to discuss the hot topics affecting the patent industry as well as share patent-related business strategies.

Speaking of the global courtroom battles going on between the manufacturers of martphones, dating back to 2010, Steve Chandler, general counsel at graphics chip manufacturer nVidia, said, "From the moment Steve Jobs declared war on [the] Android [operating system] based on IP, patents became a critical issue in the sector."

"You have two industries colliding, fuelling this patent war," added Chandler. "You have the computer industry, where, historically, IP was never critical and people were used to sharing technology; and you have the telecoms industry, where IP was essential and companies have a history of filing thousands of patents for the smallest thing... As these two industries collide, there will be winners and losers and that will affect the outcome of the war."

Back in 2007, Apple virtually reinvented the smartphone industry, which at the time was dominated by Research in Motion (RIM) and its Blackberry device, with the release of the iPhone.

That shift sparked a wave of competition as mobile phone manufacturers rushed to capitalise on a slice of the burgeoning sector; many of them adopting Google's Android operating system, specifically designed for smartphones.

Chris Burke, technology advisor at Warburg Pincus, spoke via video interview at yesterday's event.

"We can agree Apple hasn't finished with its ascendancy," said Burke. "On the win/loss column, Nokia is on the loss side and is trying to commit suicide. RIM is trying desperately to arrest its decline and has almost saved itself. Google isn't done yet, especially with the ubiquity of Android... As for Microsoft, it isn't a behemoth by any means, but it sits on the line between success and failure."

Elsewhere during the summit, delegates discussed the use of open innovation as a means of strengthening their patent portfolios.

Lise Ryberg, vice president of pharmaceutical firm Lundbeck, said drugs manufacturers should adopt open innovation strategies pioneered by the software and computer industry to help navigate the so-called "patent cliff".

"Open innovation is one of the means of saving big pharma," said Ryberg. "We're in this period IT went through years ago when we're learning we can't do it all ourselves."

"Drug companies are already beginning to share knowledge and develop tools in the early phase of the drug discovery process... We are moving there, but slowly," she added.

Lundbeck, like many other major pharmaceutical companies have all encountered the patent cliff, when their biggest selling drugs have begun to lose patent protection and companies have struggled to come up with alternatives. Ryberg said that this situation is forcing pharmaceutical firms to increasingly share their discoveries and pool their resources, particularly in areas of neglected diseases.