With smartphone being the hot item in the tech world right now, many companies are trying to get the upper edge by using their patent portfolio against other companies. Apple, Samsung, Microsoft, and numerous giant corporations are suing each other over what they feel are patent infringements. These lawsuits have big consequences, for not only do court proceedings cost millions of dollars, but the outcome could even have far bigger implications. For example, Microsoft sued HTC, the maker of cell phones such as the HTC Sensation and HTC Rhyme, over patent infringements. When everything was settled, HTC agreed to pay Microsoft 5 dollars for every HTC Android smart phone sold. Microsoft actually made more money from the selling of Android phones than their own operating system, Windows Phone 7! Microsoft makes 5 times more money through the sell of an Android phone than they do for each Windows phone sold. Apple recently won a lawsuit against Samsung in Australia. Samsung now cannot sell their popular Galaxy Tab 10.1 in Australia as a result. While you agree or disagree with how these companies are using their patents as weapons, this type of patent warfare is not new. Back in the early 1900s, the use of patent as a offensive weapon was used to limit film production.
For those who are not familiar with the foundation of filmmaking and the rise in Hollywood, film production and film companies fought to dominate this new space through the enforcement of patents. The original camera maker and the biggest patent bully was Edision Corporation. Their camera design was patented and they used this patent among others to sue other companies out of business. It became an unwritten rule that those who wanted to produce a movie would have to pay Edision to do so. Those who didn’t pay this fee would could face future lawsuits. Those who didn’t want to be bossed by Edison Corporation grouped together to found their own corporation, but they ended up using their patents to remove competition as well. Because of these lawsuits, France’s and Italy’s film industry boomed during this time and those countries became the world leader’s in film. The USA’s film making industry struggled because too many studios were worried about legal action and the lack of funds. Only until the federal government began legal action and also when Edison Corporation lost some big court cases did the film industry begin to boom.
The current patent war in the smart phone arena is similar to the rise in film. As more and more legal lawsuits are filed seemly every week, one can only look back at history and see the effects these legal actions had on innovation and creativity.
techandfilm 