This little joke is brought to you by a poster from the Ericy message board:
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Re: more patents !! foot note
by: sitrap1 02/20/03 12:49 pm
Msg: 120042 of 120043
just want to add a reminder to WHY i track the patents and why its important ..<since Jan they have now added over 360>
"If a particular company tries to hinder Ericsson's operations or shut us out of a standard by holding on to a patent, it's imperative that we have the ability to respond with similar tactics. A judicial process then becomes pointless for the parties involved. The more valuable the patent, the better the negotiating position."
Göran Nordlundh likens this patent game to the balance of power during the cold war where both parties had the most to gain from constructive negotiations. Most often, negotiations over large,general patent portfolios lead to an exchange of licenses that both parties can freely make use of, so-called cross-licensure. Otherwise, licenses for specific patents are bought and sold like any other trade goods.
Since patents protect against competitors, Ericsson primarily seeks patents in those countries where competing firms have their manufacturing. As a result, most of Ericsson's patent applications are in the U.S., Europe and Japan. The patent market is large, and there are, in fact, companies who do nothing but buy and sell patents rather than manufacture products.
"Such a shortsighted way of thinking does not correspond to our view on patents. Our basic philosophy is that patents should primarily serve to protect the results of our research and development, so that we can deliver leading edge products which are our biggest
source of income."
"We do, however, also believe in supporting open standards and low royalties in order to increase the spread of technology. Everyone benefits from a rapidly expanding market," says Göran Nordlundh.
Ericsson is also very active in various standardization organizations such as UMTS-IPR, ITU and ETSI, in order to be in a position to encourage more openness in the industry. Over the years, Ericsson has been successful in working in a way that has created new, open standards that are in line with Ericsson's technology.
Unlike many other companies, patent issues at Ericsson are handled by the Marketing and Strategic Business Planning corporate functions.More commonplace is to see companies divide the task up between their technical and legal departments.
Strategic market tool
"This shows our view of patent issues - that they are merely a strategic marketing tool. By adopting such an organizational structure, it also makes it easier for us to raise patent awareness within the company. The majority of patent work occurs out in the line organization as a natural part of our research and product development," says Göran Nordlundh.
In every business segment, including applied research, there are patent representatives available to support their unit's patent operations and to ensure that there is an active patent program.
Basis from everyday work
Göran Nordlundh maintains that it is still everyday work that forms the basis for Ericsson's successful patent strategy and the primary reason that Ericsson's patent applications have increased both in quantity and quality in recent years
AI
