Digital Wars
The Wall Street Journal (WSJ) reported on November 3 (local time) that patent wars flared up again in the IT sector. Rockstar, a consortium composed of Apple, Microsoft, Blackberry, Ericsson, and Sony sued Google, Samsung Electronics, LG Electronics, HTC, and Asustek, companies that together run the rival Android operating system, for patent infringement.
Last week, Rockstar filed its first patent suit in a Texas federal court, claiming that Google and others are infringing on Nortel patents for technology that matches search words with relevant advertising on the Internet.
A Rockstar official pointed out, “In 2011, Google presented US$900 million [956 billion won] for the initial bidding price in order to get the Nortel patents. After that, the company raised its biding price several times, but to no avail. Eventually, Nortel Networks was sold to a consortium led by Rockstar’s stockholders at US$4.5 billion.” At that time, Rockstar acquired 6,000 patents owned by Nortel, while Google purchased Motorola Mobility by investing US$12.5 billion, following its failure in the bidding.
The official said, “Since losing in the takeover of Nortel, Google has continued to infringe on the patents related to basic functions for smartphones. Google’s patent infringement is deliberate.”
John Veschi, chief executive of the Rockstar venture, commented, “The lawsuit has nothing to do with Apple or Microsoft. It was initiated at the consortium level, not by the shareholders of each company.” These remarks appear to suggest his intention to settle.
The chief executive went on to say, “In 2011, I believed that it would be better for each other to suggest patent license agreements.” He concluded by saying, “I hope that patent issues will be resolved through negotiations, although we filed a lawsuit.”
According to the WSJ, Android devices make up 75% of the global smartphone market, whereas Apple’s iOS, Microsoft’s Windows Phone, and Blackberry and others comprise 25%.