Tuesday, July 19, 2011
Patent Wars: Who Wins, Who Loses?
Apple's recent lawsuit against HTC is a disturbing trend in the world of technology. While I respect a company's right to protect its intellectual property portfolio, the recent trend of litigation for the purpose of annihilation is a zero-sum game. Patent portfolios have suddenly become profit centers. Microsoft now gets $5 for every HTC Android phone sold. A consortium of technology companies including Apple, Microsoft, RIM, Sony and Ericsson paid $4.5 billion to outbid Google for a tidy stack of Nortel patents. Apple is suing Samsung and Samsung is suing Apple for patent infringement. Where is all of this heading? I suspect it will lead to fewer choices and higher prices for technology products. And we will be the ones paying for it.