TOP NPE - IPnomics

Transcription

TOP NPE - IPnomics
who is dangerous?
IP dispute risk diagnosis - Automaker
2014 No. ➒
 IP노믹스 유료보고서는
한글/영문으로 제공합니다.
Contact : [email protected]
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This is the abridgement of the report “Automotive patent war,
who is dangerous?”
You can purchase the full version at our website,
http://www.ipnomics.co.kr
Contact us at [email protected]/82-2-2168-9485
Copyright © Etnews, KGT Lab.. All Rights Reserved. 94-152 Youngdeungpo-dong 2st, Youngdeungpo-gu, Seoul, Korea Etnews ETRC TEL : +82-2-2168-9485, e-mail : [email protected]
 IPnomics Information
IP + Economics
Technology Trend
Industry Outlook
Dispute Risk Forecast
Company Analysis
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IP insight report 2014 No.10
&
NEXT
 Summary
In the automobile market, IP disputes have emerged as a new risk.
Patent trolls (NPEs) began to file lawsuits against automakers
indiscriminately.
Automotive litigation has sharply
 NPEs have built their IP portfolios around patents having a
great influence on the automobile industry.
increased since 2011 with most of the
lawsuits launched by NPEs who have
been capitalizing on the experience they
gained from their attacks in the IT sector
Automakers are increasingly citing NPE patents. The ‘increased
number of patent citations’ means that the influence of NPEs, owners
of the cited patents, has grown. The ‘increased number of citations’ is
not unrelated to the possibility of ‘disputes.’ NPEs built their IP
portfolios with a focus on influential technologies to sue automakers.
to target the automotive industry that is
relatively vulnerable to patent litigation.
 We diagnosed the ‘current dispute risks’ facing
automakers and the ‘future dispute risks’ 2~3 years down
the line.
We identified dispute risks based on the number of times that
automakers cited NPE patents. We also diagnosed future dispute risks
with a focus on NPEs that have been cited frequently by automakers
in the past three years though they have not filed any lawsuit yet.
California also have a high IP dispute risk. NPEs targeting the
automotive market are using various offensive strategies, e.g.
establishing subsidiaries, transfer of patent rights, and collaboration
with other NPEs.
 The IP influence of IT enterprises on the auto industry is
quickly increasing.
The automobile industry has been citing smart car-related patents of
IT companies with an increasing frequency. The increased number of
citations means that the influence of global IT companies, owners of
the cited patents, has increased. It is forecast that the formation of IP
alliances and license agreements between the automobile industry
and IT companies is inevitable.
 The most threatening NPEs are Paice and American
Vehicular Sciences.
The NPE currently with the highest dispute risk is Paice, while the
NPE with the highest future dispute risk is American Vehicular
Sciences. University research centers of MIT and the University of
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IP insight report 2014 No.9
American
Vehicular
Science
Auto industry embroiled in litigation
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IP insight report 2014 No.9
 Auto industry embroiled in litigation
Automotive patent lawsuits have sharply increased since 2011. In the automotive market
where leaders are competing fiercely, IP disputes have emerged as a new risk.
 Automotive patent lawsuits exceeding 100 a year
Automotive lawsuits have been sharply increasing since 2011. Most of the lawsuits have
been brought against global automakers. Among them, the two companies targeted the most
were Ford and BMW, but during the past 3 years lawsuits against Toyota and Nissan have
greatly increased. In Korea, the number of lawsuits brought against Hyundai & Kia has also
sharply increased during the past 3 years. So it is clear that patent litigation has become a
new risk factor in the automotive market where leading players are competing fiercely with
one another.
2003
No. of patents
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2011
2012
2013
2014
Total
Total
 Patent lawsuits emerging as a risk factor for global automakers
Lawsuits by
auto maker
 Fierce competition among automakers to be included in the top 5 in terms of market share
Changes in the
market shares of
leading automakers
Changes in
ranking in the
automotive 1
market
2
5
2000
2005
2009
2013
GM
15.7%
GM
13.5%
Toyota
11.7%
Toyota
12.4%
Ford
12.6%
Toyota
12.2%
Volkswagen
10.0%
GM
12.0%
3
Toyota
10.5%
Ford
11.6%
GM
9.8%
Volkswagen
12.0%
4
Volkswagen
8.8%
Nissan
9.2%
Nissan
8.5%
Nissan
9.6%
5
Nissan
8.7%
Volkswagen
8.1%
Hyundai
7.9%
Hyundai
9.4%
IP insight report 2014 No.9
2003
2004
2005
2006
2007
2008
2009
2010
Recent
3 years
 Auto industry embroiled in litigation
Automotive patent lawsuits are mostly filed by patent trolls (NPE).
NPEs account for a massive 90% of all patent lawsuits filed in the past 3 years.
 Lawsuits filed by NPEs account for 90% of all lawsuits on an annual average in recent 3 years
The automotive industry is facing increased patent litigation risk. Indeed, disputes have
sharply increased since 2009 with 328 lawsuits (62.0%) having been filed in the past 3
years. More than 90% of them were filed by NPEs who leverage the litigation skills they
accumulated in the ICT sector to attack the automotive industry which is relatively
vulnerable to patent litigation. The targets of NPE attacks are not specific companies, but the
entire automotive industry.
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total
 Lawsuits brought by NPEs against automakers have sharply increased.
 The number of automotive lawsuits filed by NPEs sharply increases every year.
2003
2003
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IP insight report 2014 No.9
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total
Recent
3 years
 Auto industry embroiled in litigation
The number of NPE patents cited by automakers has been sharply increasing.
The increasing ‘number of citations’ is not unrelated to the likelihood of ‘disputes.’
 NPE patents cited by automakers have increased every year
The number of NPE patents cited by automakers has been sharply increasing. It began to
rise in 2011 and amounted to 855 in 2013. The companies which have cited NPE patents
most often since 2003 are Ford, GM and Honda in that order.
The increased number of ‘patent citations,’ which reflects the utility of technologies, means
that the influence of NPEs, the rights holders of the cited patents, has grown. The increased
patent citations are related to the litigation risk. In particular, NPEs built their IP portfolios
with a focus on influential technologies in order to press on with their automotive litigation.
 The number of patents cited by the automotive industry has
increased every year.
2000
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2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total
Recent
3 years
3-year
share
 Auto industry embroiled in litigation
 Technology groups frequently used by NPEs for litigation in the past 3 years
Those NPEs which actively brought lawsuits against automakers in the
past 3 years have a high dispute risk.
Technology groups NPEs used for litigation
The NPE that brought the greatest number of lawsuits against automakers is Beacon Navigation
that has filed a total of 64 lawsuits to date. Signal IP is also noteworthy as they filed 14 lawsuits
in 2014 alone. As Affinity Labs of Texas consistently caused disputes, it is highly likely to be
involved in litigation.
A variety of patent technologies were used to sue automakers. Based on USPC (US Patent and
Trademark Office) Subclass level, there are more than 82 technology groups. The patents used
most frequently to sue automakers are smart car-related technologies, such as vehicle control,
land vehicle alarms and indicators, and navigation.
 Number of patent lawsuits by NPE
NPE
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2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total
* No of Patent lawsuit is collected by docket number
No. of patents
used for litigation
Recent
3 years
Share
Recent
1 year
Share
 Auto industry embroiled in litigation
 Technology groups often cited by NPEs in the past 3 years
NPEs have built their litigation portfolios with a focus on patents frequently
cited by automakers.
NPEs’ automotive technologies cited by automakers
The NPE that owns the greatest number of patents frequently cited by automakers is American
Vehicular Sciences (AVS). Their number of citations has been sharply increasing since 2011,
and the number of citations in the past 10 years now totals 461. This means that AVS has the
most powerful patent portfolio among all the NPEs threatening the auto arena and thus poses a
higher litigation risk as well. Cummins, which has been passive about litigation until now, has
also built a portfolio with a focus on patents that have a great influence on the automobile
industry.
 NPEs built portfolios with a focus on patents that have a great influence on the automobile industry.
NPE patents cited by automakers
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2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
10-year
citations
3-year
citations
Total number of
citations
No of citations in the
past 3 years
Recent 3-year
share
IP dispute risks by automaker
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10
 IP dispute risks by automaker
Automaker
TOP
Current risks
Future risks
Currently the most dangerous NPE for Ford is Paice.
Significantly, the Ford Motor Company has cited a total of
123 patents that Paice has used for litigation. America
Vehicle Sciences is also noteworthy, and the patents of
university research centers, particularly the University of
California and MIT, have also been cited frequently. And as
universities have been increasingly aggressive when it
comes to litigation in recent years, they pose a high dispute
risk.
 The current distribution of dispute risks and
number of patent citations by NPE
NPE
Total number of
cited patents used
for litigation
Many mid-to-large NPEs have not filed any lawsuit against
Ford yet, but as Cummins’ patents have been cited often in
total in the past 3 years they pose a high future dispute risk.
And as Blue Leaf I.P.’s recent 3-year share of citations has
exceeded 55.6%, they are also regarded as dangerous.
* Total number of cited patents used for litigation: The number of patents used by NPEs for litigation that
were cited by automakers
* Total number of citations: Total number of times that NPE patents were cited by automakers
Number of
citations in the
past 3 years
Total number of citations
High Influence
Number of citations in the past 3 years
NPE
MIT
•
Paice
•
Number of
citations in the
past 3 years
Beacon Navigation •
1) The number of Paice patents that Ford cited includes Patent #: US-5343970 that it cited 72 times, and has entered into a license agreement.
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IP insight report 2014 No.9
 Distribution of future dispute risks and citations
by NPE
Total
number of
citations
Total
number of
citations
Number of
citations in the
past 3 years
10
 IP dispute risks by automaker
Automaker
TOP
Current risks
Future risks
Currently the most dangerous NPE for BMW is Paice. BMW
cited a total of 9 patents that Paice has used for litigation.
American Calcar is also noteworthy. As these two NPEs have
been concentrating on securing automotive patents recently,
it is forecast that the litigation risks they pose will increase
further.
Many mid-to-large NPEs have not filed any lawsuit against
BMW yet. A typical example is Cummins. As Cummins’
patents have been cited often in total and in the past 3 years,
they now pose a high future dispute risk. And as Intellectual
Ventures’ recent 3-year share of citations now exceeds 70%,
they are regarded as posing a high future dispute risk.
 The current distribution of dispute risks and
number of patent citations by NPE
NPE
Total number of
cited patents used
for litigation
High Influence
Total number of citations
Number of
citations in the
past 3 years
American Vehicular Sciences •
Number of
citations in the
past 3 years
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IP insight report 2014 No.9
Number of citations in the past 3 years
 Distribution of future dispute risks and citations
by NPE
NPE
• American Vehicular Sciences
Total
number of
citations
Total
number of
citations
Number of
citations in the
past 3 years
10
 IP dispute risks by automaker
Automaker
TOP
Current risks
Future risks
Currently the most dangerous NPE for GM is Paice. GM has
so far cited 46 patents that Paice has used for litigation.
America Vehicle Sciences is also noteworthy. The total
number of AVS patents that were cited that were also used for
litigation was high, and the total number of citations so far is
114, so Paice poses a high dispute risk. The patents of
research centers of universities like the University of
California and MIT have also been cited often, and as the
number of university patents used for litigation has been
increasing recently, they also pose a dispute risk.
GM has so far cited more NPE patents than their competitors,
and as they have cited the patents of many NPEs like BDF IF
and Cummins, which have not filed any lawsuit yet, they face
a high dispute risk. And as the patents of university research
centers like the Wisconsin Alumni Research Foundation, MIT,
etc. are also cited frequently, they are thought to pose a high
future dispute risk.
 The current distribution of dispute risks and
number of patent citations by NPE
NPE
Total number of
cited patents
used for litigation
High Influence
Number of
citations in the
past 3 years
Total number of citations
Number of
citations in the
past 3 years
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IP insight report 2014 No.9
Number of citations in the past 3 years
 Distribution of future dispute risks and citations
by NPE
NPE
Total
number of
citations
Total
number of
citations
Number of
citations in the
past 3 years
10
 IP dispute risks by automaker
Automaker
TOP
Current risks
Future risks
Currently the most dangerous NPE for Toyota is American
Vehicular Sciences. So far Toyota has cited a total of 4
patents that American Vehicular Sciences has used for
litigation. Affinity Labs of Texas and Mobilemedia Ideas are
also noteworthy.
Toyota cites fewer NPE patents than its competitors. As they
cite the patents of aggressive NPEs like American Vehicular
Sciences and MIT frequently, however, they are not free from
litigation risks. In particular, American Vehicular Sciences’ 3year share of citations now exceeds 95%, so this NPE poses
a high future dispute risk.
 The current distribution of dispute risks and
number of patent citations by NPE
NPE
Total number of
cited patents
used for litigation
High Influence
Total number of citations
Number of
citations in the
past 3 years
Number of
citations in the
past 3 years
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IP insight report 2014 No.9
Number of citations in the past 3 years
 Distribution of future dispute risks and citations
by NPE
NPE
Total
number of
citations
Total
number of
citations
Number of
citations in the
past 3 years
10
 IP dispute risks by automaker
Automaker
TOP
Current risks
Future risks
Currently the most dangerous NPE for Mercedes Benz
(“Benz”) is Paice. So far Benz has cited a total of three
patents that Paice has used for litigation. MIT and the
University of California are also noteworthy. MIT patents are
cited most often among the patents posing a high dispute
risk. Though Benz cites relatively more NPE patents than its
competitors, they are only No. 4 among automakers in terms
of the number of times sued by NPEs
Many mid-to-large NPEs have not filed any lawsuit against
Benz yet. As BDF IP’s patents have been cited often in total
and in the past 3 years, they pose a high future dispute risk.
Cummins and American Vehicular Sciences are also
regarded as having a high litigation risk.
 The current distribution of dispute risks and
number of patent citations by NPE
NPE
Total number of
cited patents
used for litigation
High Influence
Number of
citations in the
past 3 years
Total number of citations
Number of
citations in the
past 3 years
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IP insight report 2014 No.9
Number of citations in the past 3 years
 Distribution of future dispute risks and citations
by NPE
NPE
Total
number of
citations
Total
number of
citations
Number of
citations in the
past 3 years
10
 IP dispute risks by automaker
Automaker
TOP
Current risks
Future risks
Currently the most dangerous NPE for Honda is American
Calcar. So far Honda has cited a total of 61 patents that
American Calcar has used for litigation. American Vehicular
Sciences is also noteworthy. American Vehicular Sciences
has a total of 119 patents that were cited by Honda, more
than any other NPE.
Honda cites more NPE patents than its competitors. In
particular, as they have cited the patents of aggressive NPEs
like Cummins and American Vehicular Sciences, they face a
high litigation risk. Many mid-to-large NPEs have not filed
any lawsuit against Honda yet. And as BDF IP’s patents have
been cited often in total and in the past 3 years, they pose a
high future dispute risk.
 The current distribution of dispute risks and
number of patent citations by NPE
NPE
Total number of
cited patents used
for litigation
High Influence
Number of
citations in the
past 3 years
Total number of citations
Number of
citations in the
past 3 years
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IP insight report 2014 No.9
Number of citations in the past 3 years
 Distribution of future dispute risks and citations
by NPE
NPE
Total
number of
citations
Total
number of
citations
Number of
citations in the
past 3 years
10
 IP dispute risks by automaker
Automaker
TOP
Current risks
Future risks
Currently the most dangerous NPE for Nissan is Paice. So far
Nissan has cited a total of 24 patents that Paice has used for
litigation. University research centers like the University of
California and MIT are also noteworthy.
Nissan cited the patents of Boston University more than
those of other NPEs posing a high future dispute risk. As the
number of university patents used for litigation has been
increasing recently, they pose a rising dispute risk. Many
mid-to-large NPEs have not filed any lawsuit against Nissan
yet. Intellectual Ventures is a typical example.
 The current distribution of dispute risks and
number of patent citations by NPE
NPE
Total number of
cited patents used
for litigation
High Influence
Number of
citations in the
past 3 years
Total number of citations
Number of
citations in the
past 3 years
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IP insight report 2014 No.9
Number of citations in the past 3 years
 Distribution of future dispute risks and citations
by NPE
NPE
Total
number of
citations
Total
number of
citations
Number of
citations in the
past 3 years
10
 IP dispute risks by automaker
Automaker
TOP
Current risks
Future risks
Currently the most dangerous NPE for Volkswagen is
American Calcar. So far Volkswagen has cited a total of 11
patents that American Calcar has used for litigation.
Immersion is also noteworthy. American Vehicular Sciences
and the University of California, who are actively suing the
automobile industry, are also regarded as posing a high
litigation risk.
Volkswagen has cited fewer NPE patents than their
competitors, but as they have cited the patents of aggressive
NPEs like American Vehicular Sciences and American Calcar,
they are not free from litigation risks.
 The current distribution of dispute risks and
number of patent citations by NPE
NPE
Total number of
cited patents used
for litigation
High Influence
Total number of citations
Number of
citations in the
past 3 years
Number of citations in the past 3 years
NPE
Paice
•
Number of
citations in the
past 3 years
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IP insight report 2014 No.9
 Distribution of future dispute risks and citations
by NPE
Total
number of
citations
Total
number of
citations
Number of
citations in the
past 3 years
10
 IP dispute risks by automaker
Automaker
TOP
Current risks
Future risks
Currently the most dangerous NPE for Hyundai is PJC
Logistics. So far Hyundai has cited a total of 3 patents that
PJC has used for litigation. The University of California is
also noteworthy, and American Vehicular Sciences and
Automotive Technologies International, which sued Hyundai
successively, are also regarded as posing a high litigation
risk.
Hyundai has cited fewer NPE patents than their competitors.
However, even though they have not yet cited any patent of
any NPE, Hyundai should not be seen as free from dispute
risks. As a matter of fact, Hyundai has never cited any
Beacon Navigation patent, but was sued 4 times. And as they
have cited the patents of aggressive NPEs like American
Vehicular Sciences, Cummins and Blue Leaf, they actually
do face a high probability of litigation risk.
 The current distribution of dispute risks and
number of patent citations by NPE
Total number of
cited patents
used for litigation
Number of
citations in the
past 3 years
PJC Logistics
3
3
University Of California
2
3
Unitrac
2
2
NPE
UUSI
2
2
Parker Intangibles
1
7
Automotive Technologies
International
1
2
55 Brake Company
1
1
Paice
1
1
Renaissance Group IP Holdings
1
1
TC License
19
High Influence
IP insight report 2014 No.9
1
1
Total number of citations
Parker Intangibles
•
American Vehicular Sciences
•
University Of California
•
Number of
citations in the
past 3 years
Number of
citations in the
past 3 years
Blue Leaf I.P
17
0
American Vehicular Sciences
13
9
Cummins
7
4
Parker Intangibles
7
1
ITRI
6
3
Round Rock Research
4
1
Blue Leaf I.P
3
1
BDF IP
3
1
PJC Logistics
3
0
Tendler Cellular
3
0
University Of California
3
0
Automotive Components
2
2
Great Lakes Intellectual Property
2
2
Unisys
2
1
UUSI
2
1
Intellectual Ventures
2
1
NPE
Cummins
•
Paice
•
Total
number of
citations
Number of citations in the past 3 years
PJC Logistics
•
Unitrac UUSI
•
• Automotive
Technologies
International
•
 Distribution of future dispute risks and citations
by NPE
ITRI
•
• Automotive
Components
Round Rock
Blue Leaf I.P Research
•
•
Parker
Intangibles
•
Total
number of
Blue Leaf I.P
citations
•
10
 IP dispute risks by automaker
Automaker
TOP
Current risks
Future risks
Currently the most dangerous NPE for Chrysler is Paice. So
far Chrysler has cited a total of 12 patents that Paice has
used for litigation. Condatis is also noteworthy. American
Vehicular Sciences and the University of California, who are
actively suing the automobile industry, are each also
regarded as posing a high litigation risk.
Chrysler has so far cited fewer NPE patents than their
competitors, but nevertheless they are not free from dispute
risks. Indeed, because the few patents they have cited were of
aggressive NPEs like Blue Leaf I.P and Mellea, which have
not yet filed any lawsuit against Chrysler, there is a litigation
risk.
 The current distribution of dispute risks and
number of patent citations by NPE
NPE
Total number of
cited patents used
for litigation
High Influence
Number of
citations in the
past 3 years
Total number of citations
Number of citations in the past 3 years
American Vehicular
Sciences
•
Paice
•
Condatis
•
Omega
Patents
•
NPE
American Vehicular Sciences
•
MIT
•
University Of
California
•
Blue Leaf I.P
•
UUSI
•
University Of
California
•
American Calcar
•
Number of
citations in the
past 3 years
20
IP insight report 2014 No.9
PJC Logistics
•
Vehicle IP
•
 Distribution of future dispute risks and citations
by NPE
Omega Patents
•
Unisys Paice MIT
•
•
•
Total
number of
citations
Total
number of
citations
Number of
citations in the
past 3 years
NPEs focusing on automobiles
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IP insight report 2014 No.9
20
 NPEs focusing on automobiles
Current risk
Dispute Risk
TOP NPE
Distribution map of NPE
Non-practicing entity
NPE
Total number of
cited patents used
for litigation
Total
number of
citations
High Influence
Current Risk
300
Total number of cited patents
used for litigation
Paice
University of California
American Calcar
American Vehicular
Sciences
UUSI
Civix-DDI
Immersion
Polaris Industries
MIT
Condatis
Parker Intangibles
Blue Leaf I.P
Melea
Smart Audio Technologies
Total
number of
citations
600
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IP insight report 2014 No.9
20
 NPEs focusing on automobiles
Dispute Risk
Future risk
TOP NPE
NPE
Distribution map of NPE
Non-practicing entity
High Influence
Future risk
Total
number of
Citations
Number of
citations in
the past 3
years
Recent 3
Years
Percentage
300
Number of citations in the past 3 years
American Vehicle
Sciences
Cummins
MIT
Blue Leaf I.P
Paice
American Calcar
Burani Consulting
BDFIP
Polaris Industries
Immersion
UUSI
Eastman Kodak Company
Round Rock Research
Total
number of
citations
600
* RPX : RPX is a typical defensive NPE. Their core business model is to purchase patents with high litigation potential to resolve disputes of member companies or reduce their risks.
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IP insight report 2014 No.9
 NPEs focusing on automobiles
NPE focusing Automobile 1
 Current disputes
Beacon Navigation
Patent technologies owned by Beacon Navigation
Beacon Navigation, headquartered in Switzerland, filed
lawsuits against 14 automakers in October 2011 at the
same time. Beacon built a litigation portfolio with a
focus on a total of 8 patents including navigation and
relative location.
Patent technologies owned by Beacon Navigation
Technologies
24
IP insight report 2014 No.9
No. of Patents
Technologies
Registration
No.
Name of Invention
Registration
Year
 NPEs focusing on automobiles
NPE focusing Automobile 2
 Current disputes
American Vehicular
Science
Technologies related to vehicle
displays like HUDs
Technologies related to vehicle
diagnosis/remote control
Patent technologies owned by American Vehicular Science
American Vehicular Sciences is a subsidiary established
by Acacia Research Group, a large NPE, to specialize in
the automotive sector. AVS has in their possession a
total of 255 patents that it got from aggressive NPEs like
Automotive Technology International and Intelligent
Technologies International in 2012, and has used them
to file lawsuits.
Previous Right Holder of America Vehicular
Science’s Patent
Technologies
25
IP insight report 2014 No.9
No. of
Patents
Technologies
No. of
Patents
American Vehicular Science’s lawsuit
Defendant
2012
2013
2014
Total
 NPEs focusing on automobiles
NPE focusing Automobile 3
 Current disputes
Paice
Technology of
Hybrid Car
Hybrid
Paice’s lawsuit
Paice files lawsuits against automakers with a focus on
patents in the hybrid car segment. Unlike most NPEs
that build IP portfolios through transactions, Paice uses
the patents it registered itself for litigation.
Patent technologies owned by American Vehicular Science
2004
2007
2008
2010
2012
2014
No. of
Patents
Technologies
Total
Since 2001, Paice has registered about one or two
patents a year some of which they have used to sue
Toyota as soon as the Prius (hybrid car) was released in
2004. As a result of that settlement, Paice entered into a
license agreement with Toyota in 2010 with regard to all
of the patents they own. Ford also entered into a license
agreement with Paice with regard to their hybrid engine
after it too was sued, but Ford was sued again by Paice
in 2014 on account of another patent.
Automakers producing hybrid cars are not free from
dispute risks with Paice. Hyundai was also sued by
Paice as soon as the Sonata Hybrid was released.
 Paice patent registrations/applications
1992
26
IP insight report 2014 No.9
1994
1999
2000
2001
2002
2003
2006
2007
2008
2009
2012
2014
Total
Automotive dispute risks
and IT companies
27
IP insight report 2014 No.9
 Automotive dispute risks and IT companies
As competition in the automotive industry intensifies, leading automakers are looking
at smart car technologies as a strategy to differentiate themselves from their
competitors.
Patent registration by smart car technology
Name of technology
■ No. of patents in the past 3 years)
■ No. of patents (03~13)
TOP5
In the so-called smart car market where the paradigm of the automotive industry is changing
and technology competition is taking place at the same time, patents are the most important
variable. Leading automakers are choosing smart car technologies as a key strategy for
differentiating themselves from their competitors. In principle, the distinction between the IT
and automotive industries is meaningless, and smart car technology is a new hot issue of
the automotive industry.
If smart car technologies are summarized based on the patent technology classification of
the US Patent and Trademark Office, most (3,302) patents are concentrated in the vehicle
control segment which accounts for about 30% of all smart car patents, followed by
navigation (1,621), land vehicle alarms or indicators (1,342), directive (938), and vehicle
position indication (591). These top 5 technologies account for about 70% of all smart car
patents.
Top10
Top5
84.9%
70.3%
* There is the detail content about patent of Smartcar in IPnomics Report (No.01)
‘When it comes to smart cars, Who will come out a winner?’.
28
IP insight report 2014 No.9
TOP10
 Automotive dispute risks and IT companies
Lawsuits involving smart car patents began to sharply increase in 2010.
Distribution of automakers’ litigation risks and patents
Name of technology
■ No. of patents involved in litigation in the past 3 years)
■ No. of patents involved in litigation (03~13)
TOP5
Recent changes in the automotive industry surrounding smart car technologies have sent a
strong signal to intellectual property (IP) as well. Lawsuits involving smart car patents began
to sharply increase in 2010. Lawsuits are not concentrated against only a few targeted
companies but have been filed across the entire automotive industry.
As patent lawsuits hinder corporate activities quite often, they emerge as a big issue
regardless of the maturity of technologies. In the navigation/directive segment where
technologies are quite saturated not many new patents are being registered, but many patent
lawsuits are underway.
Top10
Top5
78.7%
58.1%
* There is the detail content about patent of Smartcar in IPnomics Report (No.01)
‘When it comes to smart cars, Who will come out a winner?’.
29
IP insight report 2014 No.9
TOP10
 Automotive dispute risks and IT companies
As competition in the smart car segment intensifies,
IT companies’ IP influence on the automotive
industry is quickly increasing.
Distribution of global IT companies’ IP influence on the automotive industry
2000
Hitachi is an IT company that has the greatest IP influence in the
smart car segment. The patents owned by this company were cited
4,438 times in total. GE also needs to be watched closely because
citations of their patents in the past 3 years have exceeded 1,500.
The number of citations of Microsoft’s patents in the past 3 years also
account for a large portion of the total, so it is regarded as a major
partner for cooperation.
Automakers are citing the smart car patents of IT companies with
increased frequency. The increased number of citations means that
global IT companies, who are the rights holders of the cited patents,
have a greater influence. The increased patent citations are not
unrelated to litigation risks. Accordingly, it is forecast that the
automotive industry will have to enter into an IP alliance or sign
license agreements with IT companies in the future.
High Influence
Citations in Recent 3Years
Company
1
2
3
GE
4
5
6
7
8
9
10
11
12
13
14
15
16
Intel
NAVTEQ
•
•
TOMTOM
•
Lucent Tech
•
Apple Alcatel Lucent
17
18
Total Citations
•
5000
30
IP insight report 2014 No.9
19
Total
Citations
Citations
In 3Years
Share
Major NPEs for the top 9 dispute risks
and comprehensive analysis of
automakers at risk
31
IP insight report 2014 No.9
 Automotive dispute risks and IT companies
Major NPEs for each of the top 9
dispute risks and comprehensive
analysis of automakers at risk
Automaker
20
Dispute Risk
TOP NPE
NPE
Paice
University Of California
American Vehicular Sciences
Beacon Navigation
American Calcar
UUSI
MIT
Omega Patents
Silver State Intellectual Technologies
PJC Logistics
Cummins
Blue Leaf I.P
Parker Intangibles
Unisys
Burani Consulting
Intellectual Ventures
Immersion
Eastman Kodak Company
Automotive Technologies International
BDF IP
32
IP insight report 2014 No.9
10
Automaker
TOP
High Risk
The Electronic Times is the most traditional and respected provider of information
technology news and analysis in Korea.
Since 1982, The Electronic Times has grown to become the nation's largest and most extensive IT related
newspaper and every technical expert and business man including top-level executives and policy makers
have relied on The Electronic Times for acquiring speedy and accurate information they need.
As a leading newspaper in IT industry coverage, The Electronic Times has played a very important role in
growth and development of Korean information technology by delivering the latest domestic and international
IT business news and policy strategies. With more distribution to the public, The Electronic Times has
approached to the common people more closely and stabilized its position as an essential daily mass media
KGT Lab Co., Ltd. is a patent database, assessment and solutions company
specializing in patent informatics.
Notice
• The IPnomics Report contains the results of an analysis conducted on the basis of reliable data and information owned by the
Electronic Times and KwangGaeTo Lab, but does not guarantee the accuracy or completeness of the analysis results, nor will IPnomics
Report take any responsibility for any improprieties, errors or omission of information.
• The IPnomics Report contains the results of an analysis conducted by a professional research organization, but should not be
construed to be completely infallible. In no event shall IPnomics Report take any legal responsibility for the results of investments in
financial instruments like stocks.
Since its establishment in 2002, it has been the leading patent intelligence solutions provider in the market.
The company launched Patent Rank (http://rank.patentpia.com/about/outline.kgt) in 2012, a total patent
assessment service that provides recommendations for patent purchases, licensing targets and possible
cooperative partnerships with other patent holders. In 2013, the lab released a comprehensive, globalstandard patent database, the KGT Database (http://patentpia.com/db/data.kgt), fully utilizing its extensive
research and development over the past ten years. The database achieved “Database Quality CertificationValue” issued by Korea Database Agency. The company also provides KGT Report, a service created for
producing tailor-made reports for inquiring customers.
Appendix
34
IP insight report 2014 No.9
Appendix
* Technology segments where NPEs filed lawsuits against automakers
Technologies
35
IP insight report 2014 No.9
No. of
patents invol
ved in
litigation
Recent
3 years
Share
Recent
1 year
Share
Technologies
No. of
patents invol
ved in
litigation
Recent
3 years
Share
Recent
1 year
Share
Appendix
* NPE patents cited by automakers
NPE
36
IP insight report 2014 No.9
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Total
Past 3 Years
Appendix
* Automotive technologies segments cited by automakers(1)
Technologies
37
IP insight report 2014 No.9
~1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total
Appendix
* Automotive technologies segments cited by automakers(2)
Technologies
38
IP insight report 2014 No.9
~1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total
Appendix
* Total number of cited patents used for litigation(Ford)
NPE
39
IP insight report 2014 No.9
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Total
Appendix
* Total number of times that NPE patents were cited by Ford
NPE
40
IP insight report 2014 No.9
~2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total
Appendix
* Total number of cited patents used for litigation(BMW)
NPE
41
IP insight report 2014 No.9
1997
2001
2004
2005
2007
2008
2009
2010
2011
2012
2013
Total
Appendix
* Total number of times that NPE patents were cited by BMW
NPE
42
IP insight report 2014 No.9
~2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total
Appendix
* Total number of cited patents used for litigation(GM)
NPE
43
IP insight report 2014 No.9
~2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Total
Appendix
* Total number of times that NPE patents were cited by GM
NPE
44
IP insight report 2014 No.9
~2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total
Appendix
* Total number of cited patents used for litigation (Toyota)
NPE
45
IP insight report 2014 No.9
2008
2009
2010
2011
2012
2013
Total
Appendix
* Total number of times that NPE patents were cited by Toyota
NPE
46
IP insight report 2014 No.9
~2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total
Appendix
* Total number of cited patents used for litigation (Mercedes-Benz)
NPE
47
IP insight report 2014 No.9
~2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Total
Appendix
* Total number of times that NPE patents were cited by Mercedes Benz
NPE
48
IP insight report 2014 No.9
~2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total
Appendix
* Total number of cited patents used for litigation (Honda)
NPE
49
IP insight report 2014 No.9
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total
Appendix
* Total number of times that NPE patents were cited by Honda
NPE
50
IP insight report 2014 No.9
~2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total
Appendix
* Total number of cited patents used for litigation (Nissan)
NPE
51
IP insight report 2014 No.9
~2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Total
Appendix
* Total number of times that NPE patents were cited by Nissan
NPE
52
IP insight report 2014 No.9
~2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total
Appendix
* Total number of cited patents used for litigation (Volkswagen)
NPE
53
IP insight report 2014 No.9
~2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Total
Appendix
* Total number of times that NPE patents were cited by Volkswagen
NPE
54
IP insight report 2014 No.9
~2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total
Appendix
* Total number of cited patents used for litigation (Hyundai)
NPE
55
IP insight report 2014 No.9
~2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Total
Appendix
* Total number of times that NPE patents were cited by Hyundai
NPE
56
IP insight report 2014 No.9
~2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total
Appendix
* Total number of cited patents used for litigation (Chrysler)
NPE
57
IP insight report 2014 No.9
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Total
Appendix
* Total number of times that NPE patents were cited by Chrysler
NPE
58
IP insight report 2014 No.9
~2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total
Appendix
* Total number of times that NPE patents were cited by automakers
NPE
59
IP insight report 2014 No.9
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total
Appendix
* NPE patents cited by automakers
NPE
60
IP insight report 2014 No.9
~2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total
Appendix
* IT Company’s Patents cited by automakers
Technologies
61
IP insight report 2014 No.9
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total
Past
3Years