TOP NPE - IPnomics
Transcription
TOP NPE - IPnomics
who is dangerous? IP dispute risk diagnosis - Automaker 2014 No. ➒ IP노믹스 유료보고서는 한글/영문으로 제공합니다. Contact : etrc@etnews.com 미래기술연구센터 +82 2 2168-9485 This is the abridgement of the report “Automotive patent war, who is dangerous?” You can purchase the full version at our website, http://www.ipnomics.co.kr Contact us at etrc@etnews.com/82-2-2168-9485 Copyright © Etnews, KGT Lab.. All Rights Reserved. 94-152 Youngdeungpo-dong 2st, Youngdeungpo-gu, Seoul, Korea Etnews ETRC TEL : +82-2-2168-9485, e-mail : etrc@etnews.com IPnomics Information IP + Economics Technology Trend Industry Outlook Dispute Risk Forecast Company Analysis 2 IP insight report 2014 No.10 & NEXT Summary In the automobile market, IP disputes have emerged as a new risk. Patent trolls (NPEs) began to file lawsuits against automakers indiscriminately. Automotive litigation has sharply NPEs have built their IP portfolios around patents having a great influence on the automobile industry. increased since 2011 with most of the lawsuits launched by NPEs who have been capitalizing on the experience they gained from their attacks in the IT sector Automakers are increasingly citing NPE patents. The ‘increased number of patent citations’ means that the influence of NPEs, owners of the cited patents, has grown. The ‘increased number of citations’ is not unrelated to the possibility of ‘disputes.’ NPEs built their IP portfolios with a focus on influential technologies to sue automakers. to target the automotive industry that is relatively vulnerable to patent litigation. We diagnosed the ‘current dispute risks’ facing automakers and the ‘future dispute risks’ 2~3 years down the line. We identified dispute risks based on the number of times that automakers cited NPE patents. We also diagnosed future dispute risks with a focus on NPEs that have been cited frequently by automakers in the past three years though they have not filed any lawsuit yet. California also have a high IP dispute risk. NPEs targeting the automotive market are using various offensive strategies, e.g. establishing subsidiaries, transfer of patent rights, and collaboration with other NPEs. The IP influence of IT enterprises on the auto industry is quickly increasing. The automobile industry has been citing smart car-related patents of IT companies with an increasing frequency. The increased number of citations means that the influence of global IT companies, owners of the cited patents, has increased. It is forecast that the formation of IP alliances and license agreements between the automobile industry and IT companies is inevitable. The most threatening NPEs are Paice and American Vehicular Sciences. The NPE currently with the highest dispute risk is Paice, while the NPE with the highest future dispute risk is American Vehicular Sciences. University research centers of MIT and the University of 3 IP insight report 2014 No.9 American Vehicular Science Auto industry embroiled in litigation 4 IP insight report 2014 No.9 Auto industry embroiled in litigation Automotive patent lawsuits have sharply increased since 2011. In the automotive market where leaders are competing fiercely, IP disputes have emerged as a new risk. Automotive patent lawsuits exceeding 100 a year Automotive lawsuits have been sharply increasing since 2011. Most of the lawsuits have been brought against global automakers. Among them, the two companies targeted the most were Ford and BMW, but during the past 3 years lawsuits against Toyota and Nissan have greatly increased. In Korea, the number of lawsuits brought against Hyundai & Kia has also sharply increased during the past 3 years. So it is clear that patent litigation has become a new risk factor in the automotive market where leading players are competing fiercely with one another. 2003 No. of patents 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2011 2012 2013 2014 Total Total Patent lawsuits emerging as a risk factor for global automakers Lawsuits by auto maker Fierce competition among automakers to be included in the top 5 in terms of market share Changes in the market shares of leading automakers Changes in ranking in the automotive 1 market 2 5 2000 2005 2009 2013 GM 15.7% GM 13.5% Toyota 11.7% Toyota 12.4% Ford 12.6% Toyota 12.2% Volkswagen 10.0% GM 12.0% 3 Toyota 10.5% Ford 11.6% GM 9.8% Volkswagen 12.0% 4 Volkswagen 8.8% Nissan 9.2% Nissan 8.5% Nissan 9.6% 5 Nissan 8.7% Volkswagen 8.1% Hyundai 7.9% Hyundai 9.4% IP insight report 2014 No.9 2003 2004 2005 2006 2007 2008 2009 2010 Recent 3 years Auto industry embroiled in litigation Automotive patent lawsuits are mostly filed by patent trolls (NPE). NPEs account for a massive 90% of all patent lawsuits filed in the past 3 years. Lawsuits filed by NPEs account for 90% of all lawsuits on an annual average in recent 3 years The automotive industry is facing increased patent litigation risk. Indeed, disputes have sharply increased since 2009 with 328 lawsuits (62.0%) having been filed in the past 3 years. More than 90% of them were filed by NPEs who leverage the litigation skills they accumulated in the ICT sector to attack the automotive industry which is relatively vulnerable to patent litigation. The targets of NPE attacks are not specific companies, but the entire automotive industry. 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Lawsuits brought by NPEs against automakers have sharply increased. The number of automotive lawsuits filed by NPEs sharply increases every year. 2003 2003 6 IP insight report 2014 No.9 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Recent 3 years Auto industry embroiled in litigation The number of NPE patents cited by automakers has been sharply increasing. The increasing ‘number of citations’ is not unrelated to the likelihood of ‘disputes.’ NPE patents cited by automakers have increased every year The number of NPE patents cited by automakers has been sharply increasing. It began to rise in 2011 and amounted to 855 in 2013. The companies which have cited NPE patents most often since 2003 are Ford, GM and Honda in that order. The increased number of ‘patent citations,’ which reflects the utility of technologies, means that the influence of NPEs, the rights holders of the cited patents, has grown. The increased patent citations are related to the litigation risk. In particular, NPEs built their IP portfolios with a focus on influential technologies in order to press on with their automotive litigation. The number of patents cited by the automotive industry has increased every year. 2000 7 IP insight report 2014 No.9 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Recent 3 years 3-year share Auto industry embroiled in litigation Technology groups frequently used by NPEs for litigation in the past 3 years Those NPEs which actively brought lawsuits against automakers in the past 3 years have a high dispute risk. Technology groups NPEs used for litigation The NPE that brought the greatest number of lawsuits against automakers is Beacon Navigation that has filed a total of 64 lawsuits to date. Signal IP is also noteworthy as they filed 14 lawsuits in 2014 alone. As Affinity Labs of Texas consistently caused disputes, it is highly likely to be involved in litigation. A variety of patent technologies were used to sue automakers. Based on USPC (US Patent and Trademark Office) Subclass level, there are more than 82 technology groups. The patents used most frequently to sue automakers are smart car-related technologies, such as vehicle control, land vehicle alarms and indicators, and navigation. Number of patent lawsuits by NPE NPE 8 IP insight report 2014 No.9 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total * No of Patent lawsuit is collected by docket number No. of patents used for litigation Recent 3 years Share Recent 1 year Share Auto industry embroiled in litigation Technology groups often cited by NPEs in the past 3 years NPEs have built their litigation portfolios with a focus on patents frequently cited by automakers. NPEs’ automotive technologies cited by automakers The NPE that owns the greatest number of patents frequently cited by automakers is American Vehicular Sciences (AVS). Their number of citations has been sharply increasing since 2011, and the number of citations in the past 10 years now totals 461. This means that AVS has the most powerful patent portfolio among all the NPEs threatening the auto arena and thus poses a higher litigation risk as well. Cummins, which has been passive about litigation until now, has also built a portfolio with a focus on patents that have a great influence on the automobile industry. NPEs built portfolios with a focus on patents that have a great influence on the automobile industry. NPE patents cited by automakers 9 IP insight report 2014 No.9 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 10-year citations 3-year citations Total number of citations No of citations in the past 3 years Recent 3-year share IP dispute risks by automaker 10 IP insight report 2014 No.9 10 IP dispute risks by automaker Automaker TOP Current risks Future risks Currently the most dangerous NPE for Ford is Paice. Significantly, the Ford Motor Company has cited a total of 123 patents that Paice has used for litigation. America Vehicle Sciences is also noteworthy, and the patents of university research centers, particularly the University of California and MIT, have also been cited frequently. And as universities have been increasingly aggressive when it comes to litigation in recent years, they pose a high dispute risk. The current distribution of dispute risks and number of patent citations by NPE NPE Total number of cited patents used for litigation Many mid-to-large NPEs have not filed any lawsuit against Ford yet, but as Cummins’ patents have been cited often in total in the past 3 years they pose a high future dispute risk. And as Blue Leaf I.P.’s recent 3-year share of citations has exceeded 55.6%, they are also regarded as dangerous. * Total number of cited patents used for litigation: The number of patents used by NPEs for litigation that were cited by automakers * Total number of citations: Total number of times that NPE patents were cited by automakers Number of citations in the past 3 years Total number of citations High Influence Number of citations in the past 3 years NPE MIT • Paice • Number of citations in the past 3 years Beacon Navigation • 1) The number of Paice patents that Ford cited includes Patent #: US-5343970 that it cited 72 times, and has entered into a license agreement. 11 IP insight report 2014 No.9 Distribution of future dispute risks and citations by NPE Total number of citations Total number of citations Number of citations in the past 3 years 10 IP dispute risks by automaker Automaker TOP Current risks Future risks Currently the most dangerous NPE for BMW is Paice. BMW cited a total of 9 patents that Paice has used for litigation. American Calcar is also noteworthy. As these two NPEs have been concentrating on securing automotive patents recently, it is forecast that the litigation risks they pose will increase further. Many mid-to-large NPEs have not filed any lawsuit against BMW yet. A typical example is Cummins. As Cummins’ patents have been cited often in total and in the past 3 years, they now pose a high future dispute risk. And as Intellectual Ventures’ recent 3-year share of citations now exceeds 70%, they are regarded as posing a high future dispute risk. The current distribution of dispute risks and number of patent citations by NPE NPE Total number of cited patents used for litigation High Influence Total number of citations Number of citations in the past 3 years American Vehicular Sciences • Number of citations in the past 3 years 12 IP insight report 2014 No.9 Number of citations in the past 3 years Distribution of future dispute risks and citations by NPE NPE • American Vehicular Sciences Total number of citations Total number of citations Number of citations in the past 3 years 10 IP dispute risks by automaker Automaker TOP Current risks Future risks Currently the most dangerous NPE for GM is Paice. GM has so far cited 46 patents that Paice has used for litigation. America Vehicle Sciences is also noteworthy. The total number of AVS patents that were cited that were also used for litigation was high, and the total number of citations so far is 114, so Paice poses a high dispute risk. The patents of research centers of universities like the University of California and MIT have also been cited often, and as the number of university patents used for litigation has been increasing recently, they also pose a dispute risk. GM has so far cited more NPE patents than their competitors, and as they have cited the patents of many NPEs like BDF IF and Cummins, which have not filed any lawsuit yet, they face a high dispute risk. And as the patents of university research centers like the Wisconsin Alumni Research Foundation, MIT, etc. are also cited frequently, they are thought to pose a high future dispute risk. The current distribution of dispute risks and number of patent citations by NPE NPE Total number of cited patents used for litigation High Influence Number of citations in the past 3 years Total number of citations Number of citations in the past 3 years 13 IP insight report 2014 No.9 Number of citations in the past 3 years Distribution of future dispute risks and citations by NPE NPE Total number of citations Total number of citations Number of citations in the past 3 years 10 IP dispute risks by automaker Automaker TOP Current risks Future risks Currently the most dangerous NPE for Toyota is American Vehicular Sciences. So far Toyota has cited a total of 4 patents that American Vehicular Sciences has used for litigation. Affinity Labs of Texas and Mobilemedia Ideas are also noteworthy. Toyota cites fewer NPE patents than its competitors. As they cite the patents of aggressive NPEs like American Vehicular Sciences and MIT frequently, however, they are not free from litigation risks. In particular, American Vehicular Sciences’ 3year share of citations now exceeds 95%, so this NPE poses a high future dispute risk. The current distribution of dispute risks and number of patent citations by NPE NPE Total number of cited patents used for litigation High Influence Total number of citations Number of citations in the past 3 years Number of citations in the past 3 years 14 IP insight report 2014 No.9 Number of citations in the past 3 years Distribution of future dispute risks and citations by NPE NPE Total number of citations Total number of citations Number of citations in the past 3 years 10 IP dispute risks by automaker Automaker TOP Current risks Future risks Currently the most dangerous NPE for Mercedes Benz (“Benz”) is Paice. So far Benz has cited a total of three patents that Paice has used for litigation. MIT and the University of California are also noteworthy. MIT patents are cited most often among the patents posing a high dispute risk. Though Benz cites relatively more NPE patents than its competitors, they are only No. 4 among automakers in terms of the number of times sued by NPEs Many mid-to-large NPEs have not filed any lawsuit against Benz yet. As BDF IP’s patents have been cited often in total and in the past 3 years, they pose a high future dispute risk. Cummins and American Vehicular Sciences are also regarded as having a high litigation risk. The current distribution of dispute risks and number of patent citations by NPE NPE Total number of cited patents used for litigation High Influence Number of citations in the past 3 years Total number of citations Number of citations in the past 3 years 15 IP insight report 2014 No.9 Number of citations in the past 3 years Distribution of future dispute risks and citations by NPE NPE Total number of citations Total number of citations Number of citations in the past 3 years 10 IP dispute risks by automaker Automaker TOP Current risks Future risks Currently the most dangerous NPE for Honda is American Calcar. So far Honda has cited a total of 61 patents that American Calcar has used for litigation. American Vehicular Sciences is also noteworthy. American Vehicular Sciences has a total of 119 patents that were cited by Honda, more than any other NPE. Honda cites more NPE patents than its competitors. In particular, as they have cited the patents of aggressive NPEs like Cummins and American Vehicular Sciences, they face a high litigation risk. Many mid-to-large NPEs have not filed any lawsuit against Honda yet. And as BDF IP’s patents have been cited often in total and in the past 3 years, they pose a high future dispute risk. The current distribution of dispute risks and number of patent citations by NPE NPE Total number of cited patents used for litigation High Influence Number of citations in the past 3 years Total number of citations Number of citations in the past 3 years 16 IP insight report 2014 No.9 Number of citations in the past 3 years Distribution of future dispute risks and citations by NPE NPE Total number of citations Total number of citations Number of citations in the past 3 years 10 IP dispute risks by automaker Automaker TOP Current risks Future risks Currently the most dangerous NPE for Nissan is Paice. So far Nissan has cited a total of 24 patents that Paice has used for litigation. University research centers like the University of California and MIT are also noteworthy. Nissan cited the patents of Boston University more than those of other NPEs posing a high future dispute risk. As the number of university patents used for litigation has been increasing recently, they pose a rising dispute risk. Many mid-to-large NPEs have not filed any lawsuit against Nissan yet. Intellectual Ventures is a typical example. The current distribution of dispute risks and number of patent citations by NPE NPE Total number of cited patents used for litigation High Influence Number of citations in the past 3 years Total number of citations Number of citations in the past 3 years 17 IP insight report 2014 No.9 Number of citations in the past 3 years Distribution of future dispute risks and citations by NPE NPE Total number of citations Total number of citations Number of citations in the past 3 years 10 IP dispute risks by automaker Automaker TOP Current risks Future risks Currently the most dangerous NPE for Volkswagen is American Calcar. So far Volkswagen has cited a total of 11 patents that American Calcar has used for litigation. Immersion is also noteworthy. American Vehicular Sciences and the University of California, who are actively suing the automobile industry, are also regarded as posing a high litigation risk. Volkswagen has cited fewer NPE patents than their competitors, but as they have cited the patents of aggressive NPEs like American Vehicular Sciences and American Calcar, they are not free from litigation risks. The current distribution of dispute risks and number of patent citations by NPE NPE Total number of cited patents used for litigation High Influence Total number of citations Number of citations in the past 3 years Number of citations in the past 3 years NPE Paice • Number of citations in the past 3 years 18 IP insight report 2014 No.9 Distribution of future dispute risks and citations by NPE Total number of citations Total number of citations Number of citations in the past 3 years 10 IP dispute risks by automaker Automaker TOP Current risks Future risks Currently the most dangerous NPE for Hyundai is PJC Logistics. So far Hyundai has cited a total of 3 patents that PJC has used for litigation. The University of California is also noteworthy, and American Vehicular Sciences and Automotive Technologies International, which sued Hyundai successively, are also regarded as posing a high litigation risk. Hyundai has cited fewer NPE patents than their competitors. However, even though they have not yet cited any patent of any NPE, Hyundai should not be seen as free from dispute risks. As a matter of fact, Hyundai has never cited any Beacon Navigation patent, but was sued 4 times. And as they have cited the patents of aggressive NPEs like American Vehicular Sciences, Cummins and Blue Leaf, they actually do face a high probability of litigation risk. The current distribution of dispute risks and number of patent citations by NPE Total number of cited patents used for litigation Number of citations in the past 3 years PJC Logistics 3 3 University Of California 2 3 Unitrac 2 2 NPE UUSI 2 2 Parker Intangibles 1 7 Automotive Technologies International 1 2 55 Brake Company 1 1 Paice 1 1 Renaissance Group IP Holdings 1 1 TC License 19 High Influence IP insight report 2014 No.9 1 1 Total number of citations Parker Intangibles • American Vehicular Sciences • University Of California • Number of citations in the past 3 years Number of citations in the past 3 years Blue Leaf I.P 17 0 American Vehicular Sciences 13 9 Cummins 7 4 Parker Intangibles 7 1 ITRI 6 3 Round Rock Research 4 1 Blue Leaf I.P 3 1 BDF IP 3 1 PJC Logistics 3 0 Tendler Cellular 3 0 University Of California 3 0 Automotive Components 2 2 Great Lakes Intellectual Property 2 2 Unisys 2 1 UUSI 2 1 Intellectual Ventures 2 1 NPE Cummins • Paice • Total number of citations Number of citations in the past 3 years PJC Logistics • Unitrac UUSI • • Automotive Technologies International • Distribution of future dispute risks and citations by NPE ITRI • • Automotive Components Round Rock Blue Leaf I.P Research • • Parker Intangibles • Total number of Blue Leaf I.P citations • 10 IP dispute risks by automaker Automaker TOP Current risks Future risks Currently the most dangerous NPE for Chrysler is Paice. So far Chrysler has cited a total of 12 patents that Paice has used for litigation. Condatis is also noteworthy. American Vehicular Sciences and the University of California, who are actively suing the automobile industry, are each also regarded as posing a high litigation risk. Chrysler has so far cited fewer NPE patents than their competitors, but nevertheless they are not free from dispute risks. Indeed, because the few patents they have cited were of aggressive NPEs like Blue Leaf I.P and Mellea, which have not yet filed any lawsuit against Chrysler, there is a litigation risk. The current distribution of dispute risks and number of patent citations by NPE NPE Total number of cited patents used for litigation High Influence Number of citations in the past 3 years Total number of citations Number of citations in the past 3 years American Vehicular Sciences • Paice • Condatis • Omega Patents • NPE American Vehicular Sciences • MIT • University Of California • Blue Leaf I.P • UUSI • University Of California • American Calcar • Number of citations in the past 3 years 20 IP insight report 2014 No.9 PJC Logistics • Vehicle IP • Distribution of future dispute risks and citations by NPE Omega Patents • Unisys Paice MIT • • • Total number of citations Total number of citations Number of citations in the past 3 years NPEs focusing on automobiles 21 IP insight report 2014 No.9 20 NPEs focusing on automobiles Current risk Dispute Risk TOP NPE Distribution map of NPE Non-practicing entity NPE Total number of cited patents used for litigation Total number of citations High Influence Current Risk 300 Total number of cited patents used for litigation Paice University of California American Calcar American Vehicular Sciences UUSI Civix-DDI Immersion Polaris Industries MIT Condatis Parker Intangibles Blue Leaf I.P Melea Smart Audio Technologies Total number of citations 600 22 IP insight report 2014 No.9 20 NPEs focusing on automobiles Dispute Risk Future risk TOP NPE NPE Distribution map of NPE Non-practicing entity High Influence Future risk Total number of Citations Number of citations in the past 3 years Recent 3 Years Percentage 300 Number of citations in the past 3 years American Vehicle Sciences Cummins MIT Blue Leaf I.P Paice American Calcar Burani Consulting BDFIP Polaris Industries Immersion UUSI Eastman Kodak Company Round Rock Research Total number of citations 600 * RPX : RPX is a typical defensive NPE. Their core business model is to purchase patents with high litigation potential to resolve disputes of member companies or reduce their risks. 23 IP insight report 2014 No.9 NPEs focusing on automobiles NPE focusing Automobile 1 Current disputes Beacon Navigation Patent technologies owned by Beacon Navigation Beacon Navigation, headquartered in Switzerland, filed lawsuits against 14 automakers in October 2011 at the same time. Beacon built a litigation portfolio with a focus on a total of 8 patents including navigation and relative location. Patent technologies owned by Beacon Navigation Technologies 24 IP insight report 2014 No.9 No. of Patents Technologies Registration No. Name of Invention Registration Year NPEs focusing on automobiles NPE focusing Automobile 2 Current disputes American Vehicular Science Technologies related to vehicle displays like HUDs Technologies related to vehicle diagnosis/remote control Patent technologies owned by American Vehicular Science American Vehicular Sciences is a subsidiary established by Acacia Research Group, a large NPE, to specialize in the automotive sector. AVS has in their possession a total of 255 patents that it got from aggressive NPEs like Automotive Technology International and Intelligent Technologies International in 2012, and has used them to file lawsuits. Previous Right Holder of America Vehicular Science’s Patent Technologies 25 IP insight report 2014 No.9 No. of Patents Technologies No. of Patents American Vehicular Science’s lawsuit Defendant 2012 2013 2014 Total NPEs focusing on automobiles NPE focusing Automobile 3 Current disputes Paice Technology of Hybrid Car Hybrid Paice’s lawsuit Paice files lawsuits against automakers with a focus on patents in the hybrid car segment. Unlike most NPEs that build IP portfolios through transactions, Paice uses the patents it registered itself for litigation. Patent technologies owned by American Vehicular Science 2004 2007 2008 2010 2012 2014 No. of Patents Technologies Total Since 2001, Paice has registered about one or two patents a year some of which they have used to sue Toyota as soon as the Prius (hybrid car) was released in 2004. As a result of that settlement, Paice entered into a license agreement with Toyota in 2010 with regard to all of the patents they own. Ford also entered into a license agreement with Paice with regard to their hybrid engine after it too was sued, but Ford was sued again by Paice in 2014 on account of another patent. Automakers producing hybrid cars are not free from dispute risks with Paice. Hyundai was also sued by Paice as soon as the Sonata Hybrid was released. Paice patent registrations/applications 1992 26 IP insight report 2014 No.9 1994 1999 2000 2001 2002 2003 2006 2007 2008 2009 2012 2014 Total Automotive dispute risks and IT companies 27 IP insight report 2014 No.9 Automotive dispute risks and IT companies As competition in the automotive industry intensifies, leading automakers are looking at smart car technologies as a strategy to differentiate themselves from their competitors. Patent registration by smart car technology Name of technology ■ No. of patents in the past 3 years) ■ No. of patents (03~13) TOP5 In the so-called smart car market where the paradigm of the automotive industry is changing and technology competition is taking place at the same time, patents are the most important variable. Leading automakers are choosing smart car technologies as a key strategy for differentiating themselves from their competitors. In principle, the distinction between the IT and automotive industries is meaningless, and smart car technology is a new hot issue of the automotive industry. If smart car technologies are summarized based on the patent technology classification of the US Patent and Trademark Office, most (3,302) patents are concentrated in the vehicle control segment which accounts for about 30% of all smart car patents, followed by navigation (1,621), land vehicle alarms or indicators (1,342), directive (938), and vehicle position indication (591). These top 5 technologies account for about 70% of all smart car patents. Top10 Top5 84.9% 70.3% * There is the detail content about patent of Smartcar in IPnomics Report (No.01) ‘When it comes to smart cars, Who will come out a winner?’. 28 IP insight report 2014 No.9 TOP10 Automotive dispute risks and IT companies Lawsuits involving smart car patents began to sharply increase in 2010. Distribution of automakers’ litigation risks and patents Name of technology ■ No. of patents involved in litigation in the past 3 years) ■ No. of patents involved in litigation (03~13) TOP5 Recent changes in the automotive industry surrounding smart car technologies have sent a strong signal to intellectual property (IP) as well. Lawsuits involving smart car patents began to sharply increase in 2010. Lawsuits are not concentrated against only a few targeted companies but have been filed across the entire automotive industry. As patent lawsuits hinder corporate activities quite often, they emerge as a big issue regardless of the maturity of technologies. In the navigation/directive segment where technologies are quite saturated not many new patents are being registered, but many patent lawsuits are underway. Top10 Top5 78.7% 58.1% * There is the detail content about patent of Smartcar in IPnomics Report (No.01) ‘When it comes to smart cars, Who will come out a winner?’. 29 IP insight report 2014 No.9 TOP10 Automotive dispute risks and IT companies As competition in the smart car segment intensifies, IT companies’ IP influence on the automotive industry is quickly increasing. Distribution of global IT companies’ IP influence on the automotive industry 2000 Hitachi is an IT company that has the greatest IP influence in the smart car segment. The patents owned by this company were cited 4,438 times in total. GE also needs to be watched closely because citations of their patents in the past 3 years have exceeded 1,500. The number of citations of Microsoft’s patents in the past 3 years also account for a large portion of the total, so it is regarded as a major partner for cooperation. Automakers are citing the smart car patents of IT companies with increased frequency. The increased number of citations means that global IT companies, who are the rights holders of the cited patents, have a greater influence. The increased patent citations are not unrelated to litigation risks. Accordingly, it is forecast that the automotive industry will have to enter into an IP alliance or sign license agreements with IT companies in the future. High Influence Citations in Recent 3Years Company 1 2 3 GE 4 5 6 7 8 9 10 11 12 13 14 15 16 Intel NAVTEQ • • TOMTOM • Lucent Tech • Apple Alcatel Lucent 17 18 Total Citations • 5000 30 IP insight report 2014 No.9 19 Total Citations Citations In 3Years Share Major NPEs for the top 9 dispute risks and comprehensive analysis of automakers at risk 31 IP insight report 2014 No.9 Automotive dispute risks and IT companies Major NPEs for each of the top 9 dispute risks and comprehensive analysis of automakers at risk Automaker 20 Dispute Risk TOP NPE NPE Paice University Of California American Vehicular Sciences Beacon Navigation American Calcar UUSI MIT Omega Patents Silver State Intellectual Technologies PJC Logistics Cummins Blue Leaf I.P Parker Intangibles Unisys Burani Consulting Intellectual Ventures Immersion Eastman Kodak Company Automotive Technologies International BDF IP 32 IP insight report 2014 No.9 10 Automaker TOP High Risk The Electronic Times is the most traditional and respected provider of information technology news and analysis in Korea. 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Appendix 34 IP insight report 2014 No.9 Appendix * Technology segments where NPEs filed lawsuits against automakers Technologies 35 IP insight report 2014 No.9 No. of patents invol ved in litigation Recent 3 years Share Recent 1 year Share Technologies No. of patents invol ved in litigation Recent 3 years Share Recent 1 year Share Appendix * NPE patents cited by automakers NPE 36 IP insight report 2014 No.9 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Past 3 Years Appendix * Automotive technologies segments cited by automakers(1) Technologies 37 IP insight report 2014 No.9 ~1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Appendix * Automotive technologies segments cited by automakers(2) Technologies 38 IP insight report 2014 No.9 ~1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Appendix * Total number of cited patents used for litigation(Ford) NPE 39 IP insight report 2014 No.9 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Appendix * Total number of times that NPE patents were cited by Ford NPE 40 IP insight report 2014 No.9 ~2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Appendix * Total number of cited patents used for litigation(BMW) NPE 41 IP insight report 2014 No.9 1997 2001 2004 2005 2007 2008 2009 2010 2011 2012 2013 Total Appendix * Total number of times that NPE patents were cited by BMW NPE 42 IP insight report 2014 No.9 ~2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Appendix * Total number of cited patents used for litigation(GM) NPE 43 IP insight report 2014 No.9 ~2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Appendix * Total number of times that NPE patents were cited by GM NPE 44 IP insight report 2014 No.9 ~2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Appendix * Total number of cited patents used for litigation (Toyota) NPE 45 IP insight report 2014 No.9 2008 2009 2010 2011 2012 2013 Total Appendix * Total number of times that NPE patents were cited by Toyota NPE 46 IP insight report 2014 No.9 ~2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Appendix * Total number of cited patents used for litigation (Mercedes-Benz) NPE 47 IP insight report 2014 No.9 ~2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Appendix * Total number of times that NPE patents were cited by Mercedes Benz NPE 48 IP insight report 2014 No.9 ~2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Appendix * Total number of cited patents used for litigation (Honda) NPE 49 IP insight report 2014 No.9 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Appendix * Total number of times that NPE patents were cited by Honda NPE 50 IP insight report 2014 No.9 ~2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Appendix * Total number of cited patents used for litigation (Nissan) NPE 51 IP insight report 2014 No.9 ~2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Appendix * Total number of times that NPE patents were cited by Nissan NPE 52 IP insight report 2014 No.9 ~2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Appendix * Total number of cited patents used for litigation (Volkswagen) NPE 53 IP insight report 2014 No.9 ~2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Appendix * Total number of times that NPE patents were cited by Volkswagen NPE 54 IP insight report 2014 No.9 ~2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Appendix * Total number of cited patents used for litigation (Hyundai) NPE 55 IP insight report 2014 No.9 ~2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Appendix * Total number of times that NPE patents were cited by Hyundai NPE 56 IP insight report 2014 No.9 ~2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Appendix * Total number of cited patents used for litigation (Chrysler) NPE 57 IP insight report 2014 No.9 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Appendix * Total number of times that NPE patents were cited by Chrysler NPE 58 IP insight report 2014 No.9 ~2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Appendix * Total number of times that NPE patents were cited by automakers NPE 59 IP insight report 2014 No.9 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Appendix * NPE patents cited by automakers NPE 60 IP insight report 2014 No.9 ~2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Appendix * IT Company’s Patents cited by automakers Technologies 61 IP insight report 2014 No.9 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Past 3Years