InterDigital Inc (IDCC)

[jaytaylor]

It is presumed that most on this board know the basics about patents, but some appear not to. I hope the following is helpful.

Patents can have a broad, intermediate or narrow scope. Broad patents are worth alot, narrow ones very little. An essential patent is broad, because, by definition, no one can practice the industry Standard without infringing the patent. Even one essential patent is obviously worth a great deal. A narrow patent can be designed around usually by easy and minor changes and so is worth very little.

In general, in litigation as opposed to licensing negotiations, a patent is an offensive weapon rather than a defensive one. As an offensive weapon, a patent gives the right to prevent others from making, using, selling, or distributing the patented invention. It is a right to prevent others' use. However, a patent does not give the patent owner the right to use his own patented invention. Thus, where an infringement suit is brought based on an earlier broader patent, a later patent cannot be asserted in court to defend against infringement.

In licensing negotiations, patent portfolios of the two sides can be cross-licensed, and, in this sense, possession of an extensive portfolio can be a defensive weapon.