Patent Wars Are Pointless

Patent Wars Are PointlessThe Business Insider has new data about the value of the patent wars. BI cites Florian Mueller, the founder of the FOSS Patents blog. He says patent litigation is a waste of resources. His research found that the patent wars cost companies millions of dollars in time and lawyer fees. Mr. Mueller analyzed 222 Android smartphone patent assertions. He found that 90% of those cases have gone absolutely nowhere.

Patent trollAccording to BI Intelligence, Mr. Mueller’s data says that 49% of the assertions have failed thus far. Another 42% of assertions were dropped without a comprehensive settlement or a “comparably negative fate.” It turns out that only 9% of the patent assertions were able to establish liability. Even in that small sample, only 50% of those cases resulted in “lasting injunctive relief.” Mr. Mueller says that number would be even smaller if “the patents underlying Nokia’s German injunctions against HTC (2498) had come to judgment in the Federal Patent Court.”

Business Insier chart

In other words, based on patent cases brought to court by Apple (AAPL), Google (GOOG), Samsung (005930), Microsoft (MSFT), Nokia (NOK), Motorola (MSI), and a host of others, litigation is, more often than not, a serious waste of time and money for all parties involved.

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Back in 2012 Boston University estimated that patent shenanigans have cost the US economy $29 Billion annually, now there is evidence it is a total waste of time and money and only funds the lawyers.

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

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