Patent Law

The following is excerpted from the above-titled article by Moon Kim in the September 21, 2009 issue of Korea IT Times:

When Worlds.com filed a patent for its invention of a system and method for enabling users to interact in a virtual space (US patent 7,181,690), it might not have even conceived of 3D virtual Internet and on-line gaming. Recently, however, Worlds.com claimed to hold a patent dating back to 1995 that could apply to every 3-D online world currently in existence. In fact, Worlds.com has already initiated litigation against NCSoft claiming infringement on its patent.

Recently patent litigations became a big issue to large Korean consumer electronics companies and industries, and even the Korean government recognizes the importance of IP protection.

Patent troll litigation has been growing rapidly in recent years due to the emergence of start-up venture finance. The current modus operandi of the patent troll is to purchase a patent, often from from bankrupt firms, academic institutions or individual inventors, and then sue another company by claiming that one of its products infringes on the patent. Patent trolls attempt to claim patent rights against purported infringers. Notably, what patent troll companies have in common is that they do not produce products relating to the inventions whose IP rights they own, and they neither own nor facilitate product manufacturing-related R&D.

...how can a company protect itself from patent trolls, and what best practices exist to strengthen a company's defenses?

IP management teams, which usually consist of technical professional leaders (such as IBM's Master Inventors) and legal professionals, initiate periodic reviews to examine a company's IP policies and the mechanics of IP generation, valuation and use of patents continuously. This effort, combined with an analysis of the company's patent portfolio and patent intelligence, allows an IP management team to identify the weakest area of company's IP portfolio, providing them with valuable information on how to quickly and efficiently fill gaps in the company's IP protection. Profitable patent licensing businesses also play an important role in IP management, bringing multiple billions of dollars of revenue to the company every year.

Often, the responsibility of managing a company's patent defense strategy lies with the company's IP department. For a well-managed company, however, the first line of IP defense comes from the company's technology developments, which often arise as a response to its competitors. These activities include:

• Creating a core technology and protecting it by filing broader IPs to surround it.

• Creating strategic IPs.
• Alternate Design Approach.
• Better Search capability.
• IP Intelligence.
• IP Product Clearance Search.

Read the full article here.