Apple’s Defense Strategy against Samsung’s Patent Litigations

The Mannheim court, a German patent court, recently postponed its final ruling for Samsung due to invalidity possibility of Samsung’s 3G patents used in lawsuit against Apple. Most of Samsung’s 3G patents used in the litigation are filed during its participation in the 3GPP’s UMTS standardization, especially after 1999 publication of the initial WCDMA standard specifications. Apple is exploiting the initial WCDMA standard specifications combined with other prior arts such proposals presented by other participations during the 3GPP’s UMTS standardization process: Samsung’s sequential and accumulative inventions should be obvious!

For example, in ITC litigation, Apple alleged that the asserted claims of Samsung’s US7706348 are invalid in light of initial WCDMA standard specifications and a well-known technical book: “Reed-Muller codes were the only codes that had ever been used for encoding TPCI information in the initial WCDMA standard specifications. …  MacWilliams’ book is considered to be the Bible of error correcting codes (to a person of ordinary skill in the art). … 1999 Standard and MacWilliams text together disclose all of the elements of the asserted claims, and therefore render those claims invalid for obviousness.”

For more information, please contact Alex Lee at alexglee@techipm.com .
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LTE Patent War Started!

TechIPm’s analysis for patents in recent lawsuit finds that Ericsson used its LTE patents in ITC litigation against Samsung. Even if several entities claimed the LTE patent litigation, Ericsson is the first actually used LTE standard essential patents in patent lawsuit. Among three LTE patents used in ITC litigation against Samsung, two patents turned out to be patents identified as LTE standard essential patent candidates in TechIPm’s research for smartphone LTE patents (http://techipm-innovationfrontline.blogspot.com/2012/12/smartphone-lte-patent-ipr-governance-4q.html): 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.

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.

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Standard Essential Patent Strategy: Lesson from Samsung’s ITC Litigation against Apple

Generally, it is not presumed that holding a patent means its owners have market power in the context of antitrust violation analysis (35 U.S.C. Section 271(d); Illinois Tool Works Inc. v. Independent Ink, Inc., 547 U.S. 28 (2006)). However, a standard locks in a specific industry because the products should be compatible with the standard specifications. Thus, holding a standard essential patent can be considered as having a market power because all products compatible with the standard specifications should infringe the standard essential patents.

To avoid the antitrust issue with the standard essential patents, therefore, a patentee should license the patents on ‘fair, reasonable and non-discriminatory (FRAND)’ terms. Furthermore, a patentee should be careful when he or she tries to obtain an injunction from courts or ITC for enjoining potential infringers of the standard essential patents. For example, the European Commission recently announced its preliminary view that Samsung's seeking of injunctive relief basis on its 3G standard essential patents can be considered as abuse of exclusive IPRs prohibited by EU anti-competition laws.

In recent Samsung’s ITC case, Samsung sued Apple for 3G iPhones’ infringement of Samsung’s 3G standard essential patents.  Samsung insisted that, because Apple’s iPhones use Intel’s standard compatible baseband modem chip, Apple’s iPhones should infringe Samsung’s 3G standard essential patents. Considering the fact, however, that injunction is the only relief for ITC litigation it would be better bring a suit in a district court exploiting standard essential patents’ easy-of -proof characteristic (patentee should demonstrate to a preponderate degree that the accused products meet every limitations of the claim at issue) and the monetary damage options.

Furthermore, a patent used by Samsung in the ITC litigation turned out to be not a 3G standard essential patent: it was proposed and accepted during the standardization process, but never included in the final standard specifications. This fact shows the importance of alliance in standardization and IP creation processes.  Samsung should have checked the status of proposal during the standardization process and/or the essentiality of related patents afterward for amending the relevant claims during the patent prosecution process.

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.


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Samsung’s New Smartphone Strategy

According to Hankyung News (The Korea Economic Daily), Samsung Chairman Kunhee Lee reviled his new strategy for global market leadership in smartphones. The most significant point in his new strategy is change to innovative market leader from the fast follower.  Specific to the smartphones, he insisted development of collaboration ecosystem with vertical and horizontal business partners for innovative market leadership.

Mr. Kunhee Lee’s ideas for building the global collaboration ecosystem are as follows.

(1) Develop collaboration ecosystem exploiting Samsung’s strong IPRs.

(2) Keep leadership in vertical integration for manufacturing.

(3) Build innovative leadership in component technologies such as AP (Application Processor) and mobile display.

(4) Acquire creative personals and provide the best environment for them.   

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Smartphone LTE Patent Acquisitions: Alliance among Competitors?

TechIPm’s research for patents that are directly related to LTE smartphone implementation in the current US market as of January 15, 2013 reveals that holding of LTE IPRs through patent acquisition process will grow among incumbents and newcomers as the LTE became the key communications technology for smartphones and more players (e.g. Amazon and Sony) enter into the smartphone markets.

One example case is the LTE patent portfolio of Apple. Currently, Apple holds more than 90 patents directly related to LTE smartphone implementation. Nearly 95% of the LTE patents are acquired from Nortel, Freescale Semiconductor, and Intellectual Ventures.  The other example is the LTE patent portfolio of RIM (Research in Motion). More than 10% of RIM’s LTE patents are acquired from Nortel, Ericsson, and Alcatel-Lucent.

In analyzing the patent acquisition status of the LTE IPR shareholders, one interesting point is found: Motorola acquired several LTE patents from RIM. This may indicate a possible alliance among would be competitors for holding of LTE IPRs.

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InterDigital’s Smartphone LTE Patent Prosecution: Something Wrong or Strategy?

TechIPm’s research for patents that are directly related to LTE smartphone implementation in the current US market as of January 10, 2013 shows that 6 key market players - Apple, InterDigital, LG, Motorola, Nokia, Qualcomm, Samsung – dominate the IPR share (68 %) among the 24 IPR shareholders. The IPR share counts both issued patents and published applications in the USPTO.

In analyzing the patent prosecution status of the IPR shareholders, one interesting point is found: InterDigital’s rate of abandonment during the prosecution (abandoned due to failure to respond to an OA) is very high (34 %) compare to other dominant IPR shareholders (Apple 2 %, LG 1 %, Motorola 9 %, Nokia 3 %, Qualcomm 0 %, Samsung 5 %). Furthermore, InterDigital’s granting rate as issued patents is relatively low (31 %) compare to other dominant IPR shareholders (Apple 59 %, LG 84 %, Motorola 69 %, Nokia 70 %, Qualcomm 53 %, Samsung 65%).

©2013 TechIPm, LLC All Rights Reserved

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Steelhead Licensing LLC’s Patent US5491834: FRAND Defense against the Lawsuit?

Recently, Steelhead Licensing LLC, an NPE, sued several mobile phone manufactures (Apple, HTC, LG, Motorola , RIM etc.) and Telcos ((AT&T, MetroPCS, Sprint, T-Mobile) for infringement of US5491834, which was acquired from BT (British Telecommunications). A key issue with this patent litigation will be whether US5491834 is a standard essential patent for some mobile communications standards:

Generally, it is not presumed that holding a patent means its owners have market power in the context of antitrust violation analysis (35 U.S.C. Section 271(d); Illinois Tool Works Inc. v. Independent Ink, Inc., 547 U.S. 28 (2006)). However, a standard locks in a specific industry because the products should be compatible with the standard specifications. Thus, holding a standard essential patent can be considered as having a market power because all products compatible with the standard specifications should infringe the standard essential patents.

To avoid the antitrust issue with the standard essential patents, therefore, a patentee should license the patents on ‘fair, reasonable and non-discriminatory (FRAND)’ terms. Furthermore, a patentee should be careful when he or she tries to obtain an injunction from courts or ITC for enjoining potential infringers of the standard essential patents.

TechIPm’s preliminary research for US5491834 shows that it is a potentially essential patent for 3G WCDMA standard. As the title, mobile radio handover initiation determination, suggests it relates to handover determination between cells in a cellular radio system handling communications between mobile terminals and base stations. The preamble of the claim 1 also shows the purpose of the invention: a handover determination system for a mobile radio network including a plurality of cells, each cell having associated with it a base station for supporting communications with a mobile unit, the system comprising.

A potential part of the standard specifications that covers handover determination is 3GPP TS 25.331 V3.21.0 (2004-12: Radio Resource Control (RRC) protocol specification). Especially, Sections 8.4 (measurement procedures for Intra-frequency measurements) and 14.1.6 (report quantities in intra-frequency measurements) describe the claim terms:

means for monitoring a quality of a signal respectively transmitted between each of a plurality of candidate base stations and the mobile unit: upon reception of a MEASUREMENT CONTROL message the UE shall perform actions ……

means for producing an indication of the rise or fall in the said quality as a function of time: the quantities that the UE shall report to UTRAN when the event is triggered…..

control means for initiating a handover from a serving base station, supporting communications with the mobile unit, to another base station, the initiation being based on the rise/fall as a function of time in the said quality of the signals associated with the plurality of candidate base stations being monitored: the UTRAN may request a measurement by the UE to be setup…..

said mobile unit including the means for monitoring and the means for producing, the mobile unit further comprising signalling means for addressing the serving base station with an indication of the need for a handover to be initiated: cells in the active set are involved in soft handover.

said signalling means being arranged to address the serving base station with an indication of the level of priority of a handover and/or with an indication of the possibility of a handover contingent upon the proceeding results of monitoring the quality of the transmitted signal: quality measurements is the measurements of downlink quality parameters … cells that the UE is monitoring are grouped in the UE into …..

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

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Smartphone LTE Patent IPR Governance 4Q 2012

To find the key IPR holders for the LTE patents, a keyword search of the USPTO patent data base has been performed. For completeness, patent data in the lists of patents declared essential to 3GPP LTE appear at the ETSI IPR Online website is also included. As of November 30, 2012, total of 837 patents are identified which are directly related to LTE smartphone implementation in the current US market as of 4Q 2012.

The IPR shareholders (including the number of issued patents and published applications) for smartphone LTE patents are Alcatel-Lucent, Apple, Broadcome, Ericsson, ETRI, Huawei, Innovative Sonic, InterDigital, Intellectual Ventures, LG, Motorola, NEC, Nokia, NSN, NTT DoCoMo, Qualcomm, RIM, ROCKSTAR, Samsung, Sharp, Sony, TI and ZTE. Among the 23 IPR shareholders for smartphone LTE patents, Qualcomm is the leader followed by LG, Apple, Nokia, Samsung, Motorola, InterDigital, RIM, Ericsson, ZTE, ETRI, TI and NSN.

Among the 837 patents for smartphone LTE implementation, 404 patents are issued as of 4Q 2012: LG is the leader followed by Nokia, Apple, Samsung, Motorola, Qualcomm, Ericsson, InterDigital, RIM and TI.

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

©2012 TechIPm, LLC All Rights Reserved
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Samsung Galaxy S IV: Fatal blow to Apple iPhone?

According to The Kyunghyang Shinmun in S. Korea, Samsung is now developing the next version of Galaxy smartphone. The new product development project is named ‘J Project’ (here, J means Samsung CEO J. Shin). The new Samsung’s smartphone is scheduled to be launched early next year.

The new smartphone’s main features will be a flexible display and faster processor. The new features are the essential elements for the implementations of deep user experience (DUX). The DUX is considered as a key success factor for the future premium smartphones.

Additionally, it is expected that the new smartphone can avoid Apple’s potential patent infringement lawsuits, unlikely for the case of Galaxy SIII (recently, Apple claimed that several Samsung Galaxy SIII’s features infringed its UI patents: http://www.slideshare.net/alexglee/samsung-galaxy-s-iiis-features-targeted-by-apples-second-patent-lawsuit).

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