IV Insights Blog

Patents have been in the news again and as is often the case there is a lot of emotion in the coverage. With the recent White House action and numerous bills being introduced, we pulled some articles from the week that offer what we believe to be a more balanced view into the current state of the patent market as well as some alternative views and opinions on many of the proposed changes.

Milone, Cheryl. “It’s Not Just the Trolls, It’s the Patent Quality.” Corporate Counsel.

“It’s time for all patent owners—large and small, practicing and non-practicing alike—to step up their game on patent quality. With the cost of patent litigation and the size of patent verdicts skyrocketing, it is clearly in everyone’s interest that they do so. With patents and other intellectual assets now comprising 80 percent of public company market values, patent quality may soon even become a board-level imperative.”

Sununu, John. “Who is a patent troll?” Boston Globe.

“The complex truth is that patent holders occupy a spectrum as broad as the nation’s economy itself. If we insist that only manufacturers are legitimate patent holders — as President Obama seems to be doing — we marginalize and weaken an incredibly important segment of American innovation that often supplies the Apples and Samsungs of the world with the competitive edge they need.”

Epstein, Richard. “Trolling for ‘Patent Trolls’” Hoover Institution.

“What does matter is the persistent and credible charge that the large technology companies, which are strongly behind the AIA [America invents Act] and the new round of proposed changes, use the court system to stonewall legitimate inventors who lack financial resources in order to discourage similar litigation by other inventors.”

Worstall, Tim. “The White House Takes On the Patent System: But There’s A Much Simpler Solution” Forbes.

“We need to distinguish between the good patent companies and the bad ones. For many companies with large patent portfolios have set up special companies to handle them. For the good old reasons of the division and specialisation of labour. Now, by any likely legal definition these are PAEs.”

Leff, Barry. “Patent Assertion and US Innovation” IP Watchdog Blog.

“There is nothing “morally superior” about an inventor who chooses to manufacturer his or her product, versus an inventor who chooses to sell or license his invention. There is nothing in the patent system that compels a patent owner to manufacture the patented product. Nor should there be.  Why should someone who comes up with a really clever feature for a smartphone be forced to manufacture smartphones or lose his ability to protect his intellectual property?”

Intellectual Ventures supports improvements to the patent system, and we supported the President when he introduced the American Invents Act (AIA) in 2011. The AIA received broad, bipartisan support and represents an ambitious overhaul to the current patent system. Although we appreciate some of the President’s current proposals and believe they could help alleviate some of the issues that persist in the current patent system, Intellectual Ventures would encourage lawmakers to continue pursuing the bold changes set forth as part of the AIA since they have yet to be fully adopted.   

As for specific comments on the White House Task Force on Hi-Tech Patent Issues, the details of these proposals still need to be reviewed more closely. As we’ve argued in the past, Intellectual Ventures believes ‘real party in interest’ proposals are misguided and merit further discussion, but we will of course comply with whatever regulations are enacted.

In response to This American Life’s updated story, “When Patents Attack Part 2,” Intellectual Ventures would like to set the record straight particularly with regard to some of the misinformation and speculation the story included about our company.   In addition to referring you to our original statement about the first story they did about our company in 2011, we’d like to offer the following facts. We also encourage you to read the statement we provided This American Life last month when they asked us to comment on their updated piece. We’ve included it at the end of this post.

Some facts:

The relationship between IV and Oasis Research

• Oasis Research is an independent company who purchased patent assets from IV.
• Oasis Research is not a holding company that IV owns, controls or manages.
• Oasis Research is not a company doing business at IV’s direction.

Today Intellectual Ventures filed patent infringement complaints against JPMorgan Chase and Fifth Third Bank in the US District Court for the Southern District of New York and the US District Court for Southern District of Ohio.

We pursued licensing discussions with both companies but when those discussions did not progress, we chose to take steps to stop the unlicensed use of our patents. These complaints come a week after IV’s first lawsuits in the financial services industry against PNC and First National Bank Of Omaha.

National Inventors Month is coming to a close, but Intellectual Ventures, along with many other organizations, will continue celebrating inventors and providing resources to support their continued innovations.

We work with a community of more than 4,000 inventors from around the world to develop new technologies. Many of these inventors are also active in the Intellectual Ventures Invention Network (IVIN),  a collaborative community of scientific and technical experts, inventors, and entrepreneurs who work together to create, improve, and evaluate inventions.  

Project Eureka! is another platform here at Intellectual Ventures that seeks to educate and inspire inventors by sharing stories about the STEM foundations of inventors’ education, the people behind invention, and the potential power of inventions themselves.

This is just the tip of the iceberg; there are many other organizations and programs also devoted to encouraging invention and inventors of all ages and inclinations. For example:

The U.S. Patent  & Trademark Office Inventors Resources section provides a wealth of information for inventors at all stages of invention. Whether you’re just starting out, or already on your way to receiving a patent for your invention, this site will be helpful.

The Lemelson Center is focused on the study of invention and innovation. This is a great resource for inventors and educators alike. It provides multitude number of invention tools as well as multimedia resources for classrooms.

Inventors Digest is a publication that is focused on fostering the spirit and practice of innovation. Even if you’re not an inventor, you’ll have fun reading it.

To inventors everywhere, we thank you. Happy inventing!

Today IV filed patent infringement complaints against First National Bank of Omaha and PNC. IV’s Chief Litigation Counsel Melissa Finocchio provided the following statement:

“As the owner of patented technologies being used by companies in the banking industry, Intellectual Ventures approached First National Bank of Omaha and PNC to discuss licensing options for the technologies they infringe. These discussions were not productive, and today we filed infringement complaints in the US District court for the District of Nebraska and the US District court for the Western District of Pennsylvania.

We continue to pursue licensing discussions with other financial services companies, and remain open to licensing discussions with First Bank of Omaha and PNC. We hope this action puts First Bank of Omaha and PNC on track toward compensating IV for the value of these inventions."

Last week, our fair city of Seattle hosted the Licensing Executives Society (LES) annual Spring Meeting. LES is an independent, professional organization that facilitates global IP commerce, and their conferences always mark an important event in Intellectual Ventures’ calendar for the insight they offer into issues that span industries and invention areas.

This year was no different. The topics at the conference ranged from IP collaborations in China to life science acquisitions. Attendees and speakers came from fields just as diverse – from the Bill & Melinda Gates Foundation to Sanrio. 

I was pleased to join speakers from Microsoft, IBM, and Weyerhaeuser to discuss the secondary market for patents. Each of us reviewed how sophisticated the market is becoming for buying and selling IP assets as more business leaders recognize the value of their patent portfolios.

We saw this theme of an expanding secondary market repeat itself in between sessions as well, as many people we spoke to at the conference agreed:

• The secondary market is strong, and is likely to increase in the second half of this year
• More IP deals are being done with multiple buyers (e.g.  as a consortium)
• IP deals are better structured than in the past and more often brokered by third parties
• Open source licensing (in buy & sell arrangements) is increasing
• The question which is important to many (especially to a start-up) is whether their IP should be kept a trade secret or should be patented.

Our thanks go to the organizers and fellow sponsors of LES - we are already looking forward to next year’s conference. 

Kymeta Corporation, Intellectual Ventures’ second spin-out company, has been recognized by CNBC’s Squawk Box program as one of the fifty most disruptive private, venture-backed companies. Kymeta and the other companies on the list were selected due to the threat that they pose to the status quo across their industry, their potential for hyper growth, ability to replace incumbents, and other factors. 

Kymeta continues to build momentum as they prepare to commercialize the world’s first metamaterials-based antenna technology. This recent recognition comes on the heels of Kymeta’s recent partnership with Inmarsat to develop antennas that will provide business jets with access to in-flight broadband. Kymeta was also recognized earlier this year by MIT Technology Review as one of 2013’s 50 Most Disruptive Companies.

The metamaterials-based antenna technology that earned Kymeta a spot on the disruptive companies list was invented by Intellectual Ventures inventors and was developed at IV Lab before the company spun out in August 2012.

Join us in congratulating Kymeta for their ongoing accomplishments! You can read more about their work here.

Humans have been able to cross the oceans, fly around the world, and now sing David Bowie covers in space. These accomplishments and so many more can be laid at the doorstep of inventors. It is because of them that there is no final frontier because there will always be the opportunity to improve what we have and to search for what’s next.   

Recently, I have been interviewing inventors for IV’s Project Eureka!, a campaign focused on educating and inspiring inventors. Through these interviews I noticed a common theme. Regardless of the type of inventions, or the focus of the inventor, each person I’ve interviewed seems to regard the world through a lens that is constantly seeking things that can be improved, even just a little bit. The inventors who have already bettered the world are an inspiration, but for me it is the younger generation, the next crop of inventors that really has me in awe. 

In honor of National Inventors Month, we have put together a compilation of incredible young inventors who have already begun inventing progress and finding their own Eureka! moments. Take a moment to be impressed by what these young people have already accomplished.

If you know of other young inventors who should be added to our list, please tell us on facebook.

Thomas Edison said, “During all those years of experimentation and research, I never once made a discovery. All my work was deductive, and the results I achieved were those of invention, pure and simple.” 

We often talk about complex inventions that push the boundaries of what we’ve thought possible—tools to fight malaria, zero-emission energy, 3D printing. But let’s not forget that, when acted upon, basic concepts can become new inventions that have a profound impact on our lives. The telephone was inspired by a desire to communicate with each other. A bird’s wing inspired flying machines. Mary Anderson, inventor of the windshield wiper, simply wanted to see through her window on a rainy day.

In celebration of National Inventors Month, we’ve created a poster series that honors brilliant inventions in their minimalist forms.