'Armies of Attorneys' Hired to Aid Chipmakers During Slump
Companies that manufacture computer chips are retaining “armies of patent lawyers” to combat rival products or collect patent royalties.
The uptick has meant a much busier U.S. International Trade Commission, which has started investigating 42 intellectual property complaints this year, the largest number since 1983, Bloomberg reports.
“Lawyers are expensive, particularly patent lawyers in Silicon Valley, but it’s a great area to get money,” Hans Mosesmann, a semiconductor analyst for Raymond James & Associates in New York, told Bloomberg. “You’re going to see more litigation and more aggressive maneuvering.”
Overproduction and falling demand for chips have led to a slump in the market.
Qimonda, LSI and Spansion, are among the companies that are pursuing cases at the ITC, which Bloomberg notes typically winds up investigations in half the time taken by U.S. courts. Plus, the ITC has the authority to halt imports at the border.
In Spansion’s case, if the company succeeds, the ITC could ban products using Samsung chips, including Research in Motion’s BlackBerry and Apple’s iPod.
Robert Krupka, who co-chairs the IP group at Kirkland & Ellis, told Bloomberg, “No one in an economic downturn wants to be excluded from the biggest market in the world. It’s like a toll. I’m willing to pay a royalty if the total royalty still leaves me with a profit and is less than the litigation.”
Also see:
ABA Journal (January 2007): “Patent Rocket Docket: Patent holders choose the International Trade Commission for fast, powerful results” (Last item)
