There’s a Spanish proverb that “fools and obstinate men make rich lawyers”. Given the high-tech landscape these days, it would be easy to tweak it to read “Fools, obstinate men and patents make rich lawyers.”
In the past month or so, the patent marketplace has gone crazy. A consortium happily coughs up $4.5 billion for Nortel’s 6,000 patents. Google wants to spend $12.5-billion for Motorola Mobility and its 17,000 patents, and Wi-Lan has bid $480 million for Mosaid.
For all the talk about patents protecting innovation, it is looking more and more like patents will be used as a weapon to discourage innovation….unless you’re willing to pay for the privilege. We should have seen the writing on the wall in 2006 when RIM paid $612.5-million for NTP, a patent troll, to go away.
With high-tech companies aggressively building their patent portfolios, we should prepare ourselves for a flurry of lawsuits or, at least, threats of lawsuits as everyone attempts to protect their investments.
It goes without saying this will be a goldmine for lawyers who will be happy as pigs in shit as the patent wars are unleashed. With the stakes so high given how much money is being spent on patents, the legals fees for both sides (the patents owners and the alleged patent infringers) will be enormous.
My take is this is going to be a disaster for the high-tech industry as patents rather than innovation take centre stage. For people creating new products and services, it means having to look over their shoulder for an army of lawyers who will contend that a patent has been infringed.
That’s no way to encourage innovation.
Would you buy car with no brakes or doors? Would you buy a pair of hockey skates with no blades? What about a laptop with no keyboard?
If you listen to Apple, size matters when it comes to the number of mobile apps offered to iPhone users. It’s seen as a strategic strength compared with rivals such as Android, BlackBerry and Microsoft, which have smaller but growing portfolios.
Life is full of choices. You need to choose what to have for lunch. You need to choose how much of a retirement fund contribution to make. You need to choose whether that person you met at a party on the weekend is worth calling for a date. And for many of us in the digital sphere, you have to choose whether or not to buy an iPad2.