Internet of Things: Imminent Industry Patent Wars

What is the Internet of Things?

Of all the tech-driven transformations that have emerged, the Internet of Things (IoT) is deemed to have attained the status of a megatrend today. IoT, in its broadest sense, is a universe of digital and mechanical objects (mostly in the field of Internet and Telecom) that communicate with each other at lightning speed, while generating data close to 5 quintillion bytes per day. The scope of this niche technology is manifold and it has the capacity to remold the world around us with the control being at our fingertips. Be it a smart thermostat or a high-tech fridge that tracks the stock level and creates grocery lists, IoT has indeed metamorphosed the way we live. This article explores the trends in the world of the Internet of Things and the risk of patent wars it poses.

Different technologies must come together to create an IoT system. The technical pieces of an IoT system are generally classified into five categories: End Nodes, Connectivity, Data Centers, Applications, and Security.

IoT and Intellectual Property

To date, the legal discussions of the Internet of Things commenced and concluded with issues of privacy. However, today, experts are looking at the realms of intellectual property and patents and linking them to IoT. The industry players are gauging the enormous economic impact this trend poses after having predicted that the market for consumer electronics is expected to double by 2022. It is of no surprise that there is a sudden flurry of patent filings observed in this domain.

The Emergence of Patent Pools

While filing an IoT innovation for a patent, a great deal of strategic planning is done as the IoT ecosystem encompasses several layers of technology such as sensors, protocols, embedded hardware, network infrastructure, and actuators. Samsung has been on a patent filing spree with almost 9550 patents under its belt as of 2019. In a span of 5 years, Samsung has surpassed the individual patent count of LG, the former top patent assignee worldwide. Furthermore, the technology giant has entered into a partnership with other tech biggies such as Intel and Dell to collaboratively develop standards in the sphere of IoT, thus magnifying the competition in getting IoT innovations patented. 

IoT and Patent Litigation

Gone are the days when the smartphone patent wars were a rage. Today, the players remain the same, but the battlefield has changed to suit the IoT patent war. While the basis of most patent wars has been the economic impact and competing standards, there have also been other grounds for these patent conflicts. For instance, in December 2019, Roku, the number one manufacturer of streaming media devices in the US was alleged of having infringed on MV3’s patented mobile streaming innovation. This is clear litigation over IoT technology, specifically because of the convergence of technology and the compound nature of various devices that contribute to the product in question and the way these disparate devices interact. As in the case of a smartphone, the technology driving IoT also integrates a host of technologies making it quite complex to secure, enforce, and license IoT patent rights. It is also an equally laborious activity for companies to ascertain if their patented algorithm has been unintentionally infringed on.

Patent Stockpiles

A trend of stockpiling is also highly prevalent among tech companies to generate revenues from patents and defend it against potential attacks from infringers. However, a lot of these patents contain claims that are too narrow and lack in quality and utility. A competitor may always be able to work their way by designing around these patents and coming up with an amended version or abstract idea that stemmed from your innovation. Such massive stockpiling could further culminate in a patent cold war. 

Moreover, another driving force of a technology patent war is that IoT is a hugely fragmented market. Inevitable as it is, the domains that IoT caters to are limitless and have constantly been on the rise. With countless new companies and small players vying to enter this dynamic industry with lucrative technological solutions, there is an increase in the number of litigated IoT patents.

Conclusion

Now that we’ve given you a tiny nugget of wisdom pertaining to patent war, you might want to kick start your patenting process for your IoT technology. Our team of experts and attorneys are more than equipped to provide valuable counsel. With economic factors considered, we are absolutely able to work within different capacities. After all, the end goal is to forward your ingenuity. To learn more, you can get in touch with us for a complimentary consultation at +971 4 282 2677 or email us at [email protected].