IBM Breaks U.S. Patent Record

IBM has announced that it earned 4,186 U.S. patents in 2008, becoming the first ever company to earn more than 4,000 U.S. patents in a single year.  According to CNNMoney, the total number of 2008 patents granted to IBM exceeds the combined issuances of Microsoft, Hewlett-Packard, Oracle, Apple, EMC, Accenture, and Google.

This is the 16th straight year that IBM has led in U.S. patents issuances.  Yet, while announcing their number of patents, IBM also announced that they plan on increasing the number of technical inventions they publish annually by 50%.  IBM plans on publishing these inventions instead of seeking patent protection.  This decision will make their inventions freely available to others, but IBM will still continue to seek patents and protect its intellectual property.  Officials at IBM believe that their planned increase in publishing inventions will increase the build of a new, smarter infrastructure.  IBM looks to help realize this goal by pledging not to assert certain patent rights in order to increase innovation.

IBM researchers will also join a project aimed at developing a Patent Quality Index to address the issue of low-quality patents.  The goal is to improve the patent system by establishing empirical, objective metrics that can be used to determine the clarity of claims as well as the quality of prior art cited. 

“Improving patent quality must become an essential priority and we believe the application of advanced data analytics can help create an empirical measure for what has previously been a subjective evaluation,” said Dr. Rick Lawrence, manager of Predictive Modeling for IBM Research.

Siemens Lawsuit against Seagate Backfires

Siemens went to court to sue Seagate for patent infringement; only the outcome was far from expected.

As reported on The Register, Siemens originally filed their lawsuit against Seagate in 2006, over a group of patents regarding multi-layer hard disk drive sensor technology in Giant Magneto-Resistive read heads.  Siemens had sought over $1 billion in the original lawsuit for the infringement, but after numerous court rulings, the price was reduced to $160 million.

During the most recent trial, Seagate stated that it had leased the technology in question from IBM.  They argued that this IBM technology predated the Siemens patent, and therefore invalidated the patents in question.  Furthermore, Seagate stated that the IBM technology used six layers, including a stabilizing layer, while the Siemens patents referred to just five layers, not including a stabilizing layer.

The trial concluded on December 23rd, with a California jury siding with Seagate attorneys.  The decision had two main effects - Seagate was not liable to pay Siemens at all, and the patents Siemens had asserted were deemed to be invalid.

 Siemens is expected to appeal the decision.

IBM Patents Device to “Split the Bill”

Tired of all the bickering that can occur when people “go dutch” at a restaurant?  Well, IBM has an answer.

Originally filed on November 25th, a recent IBM patent application details a device that can split restaurant bills for you.  Invented by researchers at IBM’s Austin, Texas labs, the patent application describes the machine as follows:

“When the initial bill is presented, a balance due will be displayed and the indication will be provided that the bill has yet to be paid in full.  As each transaction is entered, a running total will be displayed indicating the remaining balance due.  When the running total reaches zero, the bill is paid in full, and an indication will be provided, such as by illuminating a green indicator light or by displaying a balance due of $0.00.”

Perhaps this new machine, which IBM has named “Pay at the Table,” will reduce postprandial arguments by providing a way for the person who claims they “didn’t eat any of the appetizer,” to discreetly enter the amount they owe.

It should also be noted that this patent was first filed in 2000, but was rejected.  The rejection was recently overruled, setting the stage for the most recent filing.

RPX Looking To Fend Off Patent Trolls

RPX, a San Francisco start-up, was recently launched with the intent of acquiring patents to shield technology companies from costly lawsuits.  As The Wall Street Journal reports, RPX hopes to keep patents out of the hands of “patent trolls,” who obtain patents for the sole purpose of suing companies for royalties or licensing fees.

RPX is being financed by two venture capital firms, Kleiner Perkins Caulfield & Byers and Charles River Ventures.  While RPX plans to sell membership fees based on a company’s yearly revenue, it is reported that they have already negotiated deals with IBM and Cisco Systems Inc.

So far, RPX has spent $40 million on 150 patents, and they currently have 60 more applications.  However, some worry if this start-up is truly a worthwhile venture.  RPX has reported that they plan on spending $100 million during their first 12 months, and quick math suggests they have spent roughly $190,000 on each patent they already own.  With all of this money being thrown around, one may wonder if RPX will be out of money before they can put a sizeable dent in the patent troll problem.

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