NPEs’ IPR share in 4G LTE Standard Essential Patents

TechIPm, LLC’s 4G LTE standard essential patent research for the US market reviles that NPEs’ IPR share accounts for 21% of 4G LTE Standard Essential Patents (SEPs) issued in the USPTO as of October 25, 2013. To evaluate the essentiality of a LTE patent, patent disclosures in claims and detail description for each 4G LTE patent are compared to the final versions of the 3GPP Release 10 technical specifications (LTE-Advanced). Total of 215 issued patents are identified as the potential candidates for 4G LTE SEPs relating to UE (cellular phones, smart phones, PDAs, mobile PCs, etc.) and base station (eNB) products.

Recently, in In re INNOV A TIO IP VENTURES, LLC, No. 1:11-cv-09308 (N.D. Ill. 2013), Dkt. No. 975, the court calculated FRAND royalty of WiFi SEPs: (average profit margin to the contribution of patentee’s SEPs) x (profit margin of relating products) x (pro rata share of patentee’s SEPs to the total number of WiFi SEPs providing similar contribution to the profit). Similar calculation can also lead to the FRAND royalty cap for 4G LTE SEPs. Considering the huge profit margin of 4G LTE UE and base station products in the US market, the amount of licensing royalty earnings generated by NPEs’ 21% IPR share of 4G LTE SEPs will reach billion dollar level.

For more information, please contact Alex Lee at alexglee@techipm.com .

©2013 TechIPm, LLC All Rights Reserved

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LTE Smartphone Killer NPEs

TechIPm’s research for patents that are directly related to smartphone LTE implementation in the current US market as of January 15, 2013 reveals that there are more than 400 issued patents shared by more than 20 IPRs holders. According to GSA (Global mobile Suppliers Association), there are 83 LTE enabled smartphones as of 2Q 2012.  It is also expected that the number of LTE enabled smartphones will be doubled in two years. These facts imply that there are enough number of smartphone LTE patents for bring patent infringement lawsuits and products which can be involved in the patent disputes any time soon.

TechIPm researched patent portfolios of smartphone LTE IPR holders that do not manufacture LTE Smartphones (potential NPEs) in the current US market. The research reveals that InterDigital, Ericsson, Texas Instruments, and ETRI hold the most threatening smartphone LTE patent portfolios to smartphone manufactures.

InterDigital is the most notorious NPE in mobile handset industry. InterDigital holds more than 20 issued patents including seven LTE standard-essential patent candidates as of January 15, 2013. InterDigital’s LTE patents are developed well strategically to cover key technologies that are essential for LTE smartphone implementation.

As can be seen in recent patent lawsuit against Samsung and more than 2000 patents acquisition by Unwired Planet, Ericsson can be a potent NPE for LTE smartphone manufactures in the US. Ericsson holds more than 30 issued patents including three LTE standard-essential patent candidates as of January 15, 2013. Most of Ericsson’s LTE patents are characterized by high forward citations. Ericsson actually used two LTE standard essential patents in recent ITC litigation against Samsung.

Even if Texas Instruments manufactures some chipsets related to LTE smartphones, Texas Instruments can be a potential NPE for LTE smartphone manufactures considering its aggressive patent exploiting strategy. Texas Instruments holds nearly 20 issued patents including four LTE standard-essential patent candidates as of January 15, 2013.

ETRI is a well-known non-profit research institute in S. Korea. In year 2010, ETRI sued 22 mobile phone manufactures over 3G mobile patents. ETRI holds nearly 20 issued patents including three LTE standard-essential patent candidates as of January 15, 2013.


©2013 TechIPm, LLC All Rights Reserved
http://www.techipm.com/

 

Mosaid's Nokia Patents May Be Risks to Google and Apple

Ottawa-based patent licensing company Mosaid (a famous NPE) announced an acquisition of Nokia's patents including LTE patents: http://techcrunch.com/2011/09/01/mosaid-acquires-2000-nokia-patents-will-handle-licensing-litigation-for-a-cut/

Based on the recent TechIPm's comparative analysis for LTE patent portfolios among Nokia, Motorola, Nortel, and InterDigital, it is expected that Mosaid's aggressive administration of Nokia's LTE patents can be potential risks for Google's and Apple's smartphone business.

TechIPm, LLC (http://www.techipm.com/) provides patent portfolio evaluation service for patent due diligence in mobile business acquisition. LTE patent portfolio evaluation can provide the followings.

1. What is the quality of the LTE patent portfolio?

Categorize the identified patents through the evaluation process by technology in the standard specifications Key technology components for an implementation of the LTE baseband modem: OFDM/OFDMA (Frame & Slot Structure, Modulation), SC-FDMA (PUSCH, PUCCH), Channel Estimation (UL RS, DL RS, CQI), Cell Search & Connection (PRACH, DL SS), MIMO (Transmit Diversity, Spatial Multiplexing), Resource Management (Resource Allocation, Scheduling), Coding (Convolution, Turbo), Power Control, and HARQ. Key technology components for an implementation of the LTE radio protocol: Random Access, HARQ, Channel Prioritization, Scheduling (Dynamic, SPS), Protocol Format (PDUs, SDUs), Radio Link Control (ARQ), PDCP Process (SRB, DRB, ROHC), Security (Ciphering, Integrity), System Information, Connection Control, and Mobility (Handover, Inter-RAT, Measurements).

Evaluate the level of essentiality Essentiality Index (EI): E1 : Patent disclosure is weakly related to LTE technical specifications E2 : Patent disclosure is partially related to LTE technical specifications E3 : Patent disclosure is related to LTE technical specifications overall E4.

2. What are the strengths/weaknesses of the LTE patent portfolio?

Comparative analysis among the patent portfolios (e.g. Nokia v. Motorola) by technology. Answer for what critical holes in patent landscape are there to be filled & who has patent portfolio to fill those holes.

3. Who is the best candidate for mobile business acquisition considering the business integration and/or compatibility?

4. What are the potential risks considering the possible patent lawsuits?

For more information, please contact Alex Lee at alexglee@techipm.com .


©2011 TechIPm, LLC All Rights Reserved
http://www.techipm.com/

NPEs (Patent Trolls) in Mobile Telecommunications

NPE (non-practicing entity) is a patent owner who does not manufacture or use the patented invention, but rather than abandoning the right to exclude, an NPE seeks to enforce its right through the negotiation of licenses and litigation.

IPRs and litigations involved by NPEs in mobile telecommunications are analized for US issued patents using Innography.

As of Oct. 30 2009, NPEs hold 907 patent families (4% of total patents) and are involved in 129 lawsuits (13% of total patent litigations).


©2009 TechIPm, LLC All Rights Reserved
http://www.techipm.com/