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Software industry

Patent-Holding Company Sues Six Tech Giants in Smartphone Infringement Case

Strategic Insights

— 2 min read

Patent-holding company NTP Inc. has sued six major technology companies, including Apple Inc., Google Inc., and Microsoft Corp., claiming infringement of patents related to wireless email technology. The lawsuits, filed in U.S. District Court in Richmond, Virginia, follow a similar case against Research In Motion (RIM) that ended with a $612.5-million settlement in 2006. NTP's president, Don Stout, stated that the company hopes to resolve the cases without going to trial. The company's patents have been re-examined by the U.S. Patent and Trademark Office, and many of their claims have been thrown out, but three claims were upheld.

Key Takeaways:

  • NTP Inc. has sued six technology companies, including Apple Inc., Google Inc., and Microsoft Corp., for infringing on patents related to wireless email technology.
  • The lawsuits follow a similar case against Research In Motion (RIM) that ended with a $612.5-million settlement in 2006.
  • NTP's president, Don Stout, stated that the company hopes to resolve the cases without going to trial.
  • The company's patents have been re-examined by the U.S. Patent and Trademark Office, and many of their claims have been thrown out, but three claims were upheld.
  • Alexander Poltorak, chairman and CEO of General Patent Corp., commented that NTP faces a more difficult legal environment than it did when it sued RIM.
  • The defendants have less reason to settle for large amounts due to a Supreme Court ruling in 2006 that made court-ordered halts of product sales and operations more difficult for non-practising entities like NTP.
  • NTP's main hope is that the court will decide that the defendants have to pay damages and royalties on patent-infringing products, and it can claim royalties on products made up to six years ago.
  • NTP's patents expire in two years, which means there won't be many future royalties.

Statistics:

  • $612.5 million: The settlement reached between NTP Inc. and Research In Motion (RIM) in 2006.
  • 3: The number of patent claims upheld by the U.S. Patent and Trademark Office out of 10 claims examined in the aftermath of the RIM settlement.
  • 7.01%: The percentage increase in RIM shares on the Toronto Stock Exchange after the lawsuits were filed.
  • 2006: The year in which the RIM settlement was reached and the Supreme Court made court-ordered halts of product sales and operations more difficult for non-practising entities like NTP.
  • 6 years: The time period during which NTP can claim royalties on patent-infringing products.
  • 2 years: The time period remaining before NTP's patents expire.

Sources:

  • The Associated Press
  • The Hamilton Spectator, 2010

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