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© 2007 - 2013 Sagacious Research. All Rights Reserved. www.sagaciousresearch.com S A G A C I O US U P D A T E S Sagacious Research India Sponsors IP Service World 2013 in Germany Sagacious Research is the proud sponsor of Europe’s biggest and most prestigious information and networking event for IP professionals, “IP Service World” 2013 scheduled for Nov 25-26 th in Munich. Director Mr. Anant Kataria is representing Sagacious Research at the event. He is on a 15 days business trip to Germany and other Schengen states. Emerging Economies Spending ~466 B$/Annum on Trademark Filings Trademark filings of emerging economies are increasing as against high-income countries and as suggested by recent WIPO report has almost tripled their trademark applications over the past 20-25 years. Introduction World Intellectual Property Organization (WIPO) recent study suggests that branding investments are closely interconnected with the level of a country’s economic development as a brand incarnates an enterprise’s reputation. Thus, it is the one of the most valuable assets of an enterprise. As such, it has been observed that companies around the globe spend almost $ 466 B per annum on branding including advertising, communications, marketing and trademark filings as against their expenses on research, development and design. Statistics also reveal that TM filings have paid major dividends to nations such as Spain, Portugal and South Korea. Thus, less-developed economies as against big-name players of high-income countries spend a greater slice of their resources on branding to get a leading edge for their businesses. Trademark & Trademark Registrations Vol- 10, Date: 25th November, 2013 G E N E R A L N E W S Follow Us at: We Believe in Building Trust…

Sagacious research newsletter-25 nov-2013

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Sagacious Research is a ISO certified patent research & analytics firm based in India. Weekly IP Digest is a newsletter by Sagacious Research, that is aimed to keep the professionals of IP domain updated about some of the recent & interesting updates on Intellectual Property, Patenting, Trademark news. News are collected and covered from multiple countries and in multiple domains like: engineering, technology, life sciences etc. The news are updated on a daily basis on the blog of Sagacious Research: http://www.sagaciousresearch.com/blog/

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© 2007 - 2013 Sagacious Research. All Rights Reserved.

www.sagaciousresearch.com

S A G A C I O US U P D A T E S

Sagacious Research India

Sponsors IP Service

World 2013 in Germany

Sagacious Research is the

proud sponsor of Europe’s

biggest and most prestigious

information and networking

event for IP professionals, “IP

Service World” 2013

scheduled for Nov 25-26th in

Munich. Director Mr. Anant

Kataria is representing

Sagacious Research at the

event. He is on a 15 days

business trip to Germany and

other Schengen states.

Emerging Economies Spending ~466 B$/Annum on Trademark

Filings

Trademark filings of emerging economies are increasing as against high-income

countries and as suggested by recent WIPO report has almost tripled their

trademark applications over the past 20-25 years.

Introduction

World Intellectual Property Organization (WIPO) recent study suggests that branding

investments are closely interconnected with the level of a country’s economic

development as a brand incarnates an enterprise’s reputation. Thus, it is the one of

the most valuable assets of an enterprise. As such, it has been observed that

companies around the globe spend almost $ 466 B per annum on branding including

advertising, communications, marketing and trademark filings as against their

expenses on research, development and design. Statistics also reveal that TM filings

have paid major dividends to nations such as Spain, Portugal and South Korea. Thus,

less-developed economies as against big-name players of high-income countries

spend a greater slice of their resources on branding to get a leading edge for their

businesses.

Trademark & Trademark Registrations

Vol- 10, Date: 25th November, 2013

G E N E R A L N E W S

Follow Us at:

We Believe in Building

Trust…

© 2007 - 2013 Sagacious Research. All Rights Reserved.

www.sagaciousresearch.com

Trademark is a distinctive sign which identifies certain goods or services as those produced or provided by a specific person or enterprise.

It provides protection to the owner of the mark by ensuring the exclusive right to use it to identify goods or services, or to authorize another

to use it for royalty. Since now markets have become global, further distributed and virtual, the protection provided by trademarks has

become increasingly important. Trademark applications are filed to register a trademark with national or regional Intellectual Property (IP)

offices. There is also provision for the international registration of marks at World Intellectual Property Organization (WIPO)

under Madrid Protocol. The Madrid system is a low cost and user friendly system that helps in protecting and managing trademark

portfolio in export markets. As such, India-based trademark owners are allowed to protect their trademark in 89+ countries and European

Union’s Community Trade Mark (CTM) by filing just one application and paying fees just once. The period of TM protection varies for

different trademarks but it can be renewed indefinitely beyond the time limit on payment of additional fees.

WIPO Report on Global Trademark Filings

According to a recent WIPO report, it has been found that emerging economies have almost tripled their trademark applications over the

past 20-25 years.

In between 1985-2011:

• Middle-income nations trademark filings relative to gross domestic product increased by a factor of 2.6.

• In high-income economies, meanwhile, the factor of increase was 1.6.

The top slot is captured by US giants Apple, Google, Coca-Cola and IBM and China continues to lead the Asian countries with the highest

number of trademark applications followed by India. 26 Chinese companies including China Mobile Ltd, the Industrial and Commercial

Bank of China, and online giant Baidu appears on the list. 9 firms from Brazil, including banking sector’s Bradesco and Itau have also

secured place in the list. In our earlier blog article “Trademark Filings on Rise in India, Suggests IPO Data of Past 5 Years“, we

discussed IPO findings that suggested there has been 12% annual growth in the number of trademark applications for registering

trademarks by Indian companies of which the Chennai region’s share was the highest. And now, in the WIPO report 6 Indian firms such as

Tata has appeared.

Conclusion

It is observed that now there is heightened awareness for adequate management of intellectual

property in India and other developing economies. Their spending on branding and TM filings

has tremendously increased, however, there still remains the scope for further promoting the

importance of trademark filing and securing valid IP rights. It is important that Indian

businesses realize that for better promoting their businesses on global scale, having a valid

and registered trademark is very important. This gives recognition to brand and enhances

business’s good will. Thus, businesses (before pursuing their business, products and services

in a particular country) must once conduct or engage a professional to conduct a detailed

online global trademark search (both word and picture marks) in desired jurisdictions to

find what already exists similar to the proposed mark in the given classes and avoid all

possibilities of getting into any sought of legal trouble related to trademark infringement.

Further, periodic trademark searches could also be conducted to ensure that your trademark doesn’t infringe others trademark

within the open public opposition periods in a particular jurisdiction/country.

Patenting Situation in Europe to Improve With Major Law Amendments

Radical changes introduced much recently in policies and patent laws across Europe will improve the current situation of

patenting in Europe, make it inventor-friendly and promote further innovation

The European patent system, in particular in the phase after granting a patent, is very expensive and complex. This is widely

recognized as a hindrance to innovation in Europe.

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However, some radical changes have been introduced much recently in policies and patent laws across Europe to improve the

current situation of patenting in Europe, make it inventor-friendly and promote further innovation. Presently, inventions can be

protected in Europe in following three ways-

1. “National patents”

• These are granted by the national authorities.

• The protection conferred by a national patent is limited to the territory of the State concerned.

2. “Classical European patent”

• These are granted by the European Patent Office (EPO). The EPO comprises of 38 countries (EU 27 + 11 other European

countries), and examines patent applications and grants European patents.

• For a granted European patent to be effective in a Member State, the inventor has to request validation in each country

where patent protection is sought.

• The European patent grant process involves considerable translation and administrative costs, reaching approx. €32 000

when patent protection is sought in the EU27, of which €23 000 arises from translation fees alone. In total, obtaining patent

protection in 27 Member States, including the procedural costs, could reach € 36 000.

• The maintenance of European patents requires the payment of annual renewal fees country by country and a transfer of the

patent or a licensing agreement to use the patented invention has to be registered in the same way.

3. Unitary Patent

• The unitary patent is centrally administered by the EPO throughout the

patent term, i.e. 20 years from the filing date of the patent application.

• The international agreement that created a unified patent court will most

likely enter into force on 1 January 2014 or after 13 contracting states ratify

it, provided that UK, France and Germany are among them.

• Any inventor (or patent holder) will be able to request to the EPO for an EU

unitary patent valid in all 25 EU member states taking part. Applications

will have to be made in English, German or French. If made in another

language, they will have to be accompanied by a translation into one of

these three languages.

• Patent holders may also request the unitary effect at the European Patent

Office (EPO) no later than 1 month after the grant of their European

patent. The unitary effect which is entered by the EPO into its Register transforms the European patent into one single

patent for the 25 Member States.

• Anybody, regardless of the country of origin, can opt for a unitary patent.

• The translation costs for unitary patent in 25 Member States would be €680 in the long run, and less than €2 500 during a

transitional period. Translation costs will be fully reimbursed for EU-based small and medium-sized enterprises, non-profit

organisations, universities and public research organisations. The renewal fees, which account for a large share of total costs,

will also be set at a level that takes account of the special needs of small firms (SME’s).

• Spain and Italy are currently outside the new regime.

Overhaul in German Patent Office Proceedings

With the revision of the German Patent Act, German Patent and Trade Mark Office (DPMA)

procedures and functionality have become strikingly efficient compared with the application

procedure of the EPO, in particular for first applicants. Earlier, the German patent office (DPMA) was

not as competitive but now is in a serious bid to become better than EPO.

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1. They have brought drastic changes in their translation regulations and are also issuing a substantiated search report, to

attract companies from outside Germany and overhaul the number of first applications as compared to EPO.

2. Their substantiated search report will be issued within the priority year for patent applications in English or French

language also. They have plans to formulate the report in an official action format at a very reasonable price.

3. The application fee for such an extensive search report is just € 300 and thus far below the search fee of the European

Patent Office, which is currently € 1,165.00.

4. They have adopted international search standards, and have extended the scope of the content of their search reports

significantly on lines of EP and PCT procedure. As such, the German search report now also has comments on novelty and

inventive step, along with sufficient disclosure and unity of the invention in detail.

5. Since June 2011, DPMA is also managing its files electronically so that principally, files are accessible via the internet,

something that brings it at par with European Patent Office.

6. The term for filing an opposition is also extended from currently 3 months to 9 months, which is also the case at the EPO.

7. For foreign language patent applications, costs for a translation into English or French language are much below the fee for

the search report by the EPO, provided translation is filed within 12 months from the application date, for the first

application. When a priority is claimed, the translation must be filed within 15 months from the priority date.

8. The difference in the search fee between the DPMA and the EPO of at least €915 is another tempting incentive.

Conclusion

Unitary patent will be cheaper and more effective than current systems in protecting the inventions of individuals and firms in

Europe. It will be relatively inexpensive and offer patent protection in all 25 participating member states simultaneously,

subsequently boosting innovation and European economy. Considering that it offers so many advantages, national patent offices

in Europe (such as that of Germany)are taking cues and have revised their country’s patent laws to create a more conducive

environment to catch up or to even overtake the EPO with regard to the number of first applications. To get past the advantages of

European unitary patent and increase national German patent applications, DPMA has taken concrete measures and consequently,

in 2012, 57K national patent applications as first applications where received by the DPMA as against 64K direct EP first

applications received by the EPO. Thus, it is certain that emergence of new alternatives such as unitary patent and positive changes

in patent laws will certainly have a powerful impact on the patenting situation of Europe.

S O M E O T H E R T O P N E W S I N T H I S C A T E G O R Y:

Auburn University Honored with Research award for Role in Developing Top 100 Patent of 2013 Read: http://bit.ly/176TlbO Amazon’s Patent Grants Touches A Remarkable Figure of 1,263 Read: http://bit.ly/18hwbjS Summary of Proposed Patent Law Amendments (2013) Read: http://bit.ly/HM5Dg3 In Global Intellectual Property Index (GIPI 4) UK Attains Top spot Read: http://bit.ly/HM5Dg3 Learn How to Rein in Patent Litigation Via Fee Shifts Read: http://bit.ly/1aFK6MX

© 2007 - 2013 Sagacious Research. All Rights Reserved.

www.sagaciousresearch.com

When the patent of the drug nears expiration, other manufacturers can apply to FDA to sell its generic versions.

Aciphex is used in treatment of-

• Gastroesophageal reflux disease (GERD) and its symptoms such as heartburn, regurgitation of acid, and nausea.

• Zollinger-Ellison syndrome, a medical condition in which the stomach produces too much acid.

• Ulcers

This medication i.e. Aciphex (rabeprazole sodium) is so widely used that it is important to have access to affordable treatment options. It

is widely used to treat adults as well as adolescents (age 12 and above).

About Aciphex & Aciphex Patent

Aciphex is chemically rabeprazole sodium. Rabeprazole falls in a class of medications referred to as proton- pump inhibitors. The drug

works by decreasing the amount of acid made in the stomach. The US 5045552 patent for Aciphex (rabeprazole sodium) was held by

Eisai Inc. till August 2013. Back in 2008, US Federal Court had ruled that Dr. Reddy’s Laboratories, Inc. (collectively “Dr. Reddy’s”) and

Teva Pharmaceuticals USA, Inc. (“Teva”) had infringed on this patent. At the same time, each of the two companies had also filed ANDAs

(abbreviated new drug application) seeking to manufacture a generic version of Aciphex much before the expiration of the ’552 patent.

FDA Approval Requirements

Firm applying for generic drug selling must meet the following requirements for the FDA’s review-

1. An FDA-approved brand-name drug must be provided as the reference for the proposed generic.

2. Generic manufacturer must establish drugs bioequivalence i.e. drug’s performance.

Generic must have the same active ingredient(s)

Generic must have the same labeled strength as the reference product.

Generic must have the same dosage form (tablets, patches and liquids)

Generic must be administered the same way, for example, swallowed as a pill or given as an injection.

3. Generic manufacturer must fully document the generic drug’s chemistry, manufacturing steps and quality control measures.

4. Generic manufacturer must assure the FDA that the raw materials and the finished product meet USP specifications, if these

have been set. The USP, or U.S. Pharmacopoeia, is the non-profit, scientific body chartered by Congress to set standards for

drug purity in US.

5. Generic manufacturer must show that its generic drug maintains stability as labeled before it can be sold. 11. Once on the

market, the firm must continue to monitor the drug’s stability.

US FDA Nods To Selling of Generic Aciphex

The patent incentivizes the drug manufacturer by giving exclusive right to sell the drug while the patent

is in effect for its investment in the drug development. When the patent of the drug nears expiration,

other manufacturers can apply to FDA to sell its generic versions.

Generic Drugs

Inexpensive copies of brand-name drugs that have exactly the same dosage, intended use, side effects, route of

administration, risks, safety, and strength as the original drug are referred to as generics. New or pioneering

drugs are developed under patent protection. The patent (valid intellectual property right) incentivizes the

drug manufacturer by giving exclusive right to sell the drug while the patent is in effect for its investment in

the drug development.

L I F E S C I E N C E S

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6. Generic manufacturer must provide a full description of the facilities it uses to manufacture, process, test, package, label &

control the drug. It must also certify that it complies with federal regulations about current good manufacturing practices and

undergo FDA inspection of the manufacturing facility to assure compliance.

Moreover, prior to approval, FDA usually conducts an inspection at the proposed manufacturing site to make sure the generic

manufacturer is capable of meeting its application commitments and can manufacture the generic consistently. Thus, health care

professionals and consumers can be assured that FDA-approved generic drugs have met the same rigid standards of quality as the brand-

name drug.

Firms that Received US FDA Nod to Market 1st Generic Version of Aciphex

1. Lupin Pharmaceuticals Inc

2. Kremers Urban Pharmaceuticals Inc

3. Mylan Pharmaceuticals Inc

4. Teva Pharmaceuticals USA

5. Torrent Pharmaceuticals Ltd

6. Dr Reddy’s Laboratories Ltd.

Conclusion

In our blog article “Scaling Ahead of The Problem of Patent Cliff”, we discussed how the phenomenon of patent expiration has led

to abrupt drop in sales of big pharmaceutical brands and a simultaneous rise of generic drug makers, particularly of Indian origin. The

news that US FDA has given positive nod to 6 Indian pharmaceutical companies to actively pursue selling of generic version of a

significant branded drug “Aciphex” further proves our point. Not only these FDA approvals will give the desired boost to the spirits of

Indian domestic pharma sector, grappling long with issues like lack of funds & resources for R&D but will also be beneficial for healthcare

industry and consumers at large. The biggest plus point with generic prescription drugs approved by the FDA are that they have the same

high quality and strength as brand-name drugs as they pass the same quality standards as those of brand-name drugs. Yet, these are

available at an average of 30% of the price of the brand-name originals.

Companies like Lupin, and Dr. Reddy’s Labs will gain the most considering that in 2013, rupee has faced its steepest depreciation against

the US dollar and these firms earn majority of their revenues from the US.

1. Energy Generation

Alternative energy generation technologies, including wind and solar, are the focus of a trio of patents issued to Siemens recently.

U.S. Patent No. 8567833, titled Blade Lifting System with Saloon Doors, protects a system of removing blades from wind

turbine hubs that is more time-efficient and requires much less manual labor.

U.S. Patent No. 8568103, issued under the title Wind Turbine Rotor Blade, protects the design of an improved wind turbine

rotor blade with increased aerodynamic qualities that doesn’t increase production costs dramatically.

Siemens AG – Leader in Patenting in Medical &

Alternative Technologies

Here are unleashed some of the most interesting inventions of Siemens

AG, a pioneering company in patenting in Medical & Alternative

Technologies segment

Introduction

Germany-based Siemens AG is an integrated technology company that

innovates in not one but several technical domains. We here are specifically

unleashing some of the most interesting and valuable inventions of Siemens

in the following segments-

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U.S. Patent No. 8544273, which is titled Solar Thermal Power Plant, protects the design of a solar power plant that operates

in two solar heating modes. It should be noted that the incredible length of Claim 1 may make the patent protections too narrow

to be of much use to Siemens.

Siemens also recently received a $400 million contract to deliver two power plant blocks to the state of Pennsylvania and was

also issued patents protecting improvements to systems of maintaining wind turbines as well as one protecting a solar thermal

power plant.

2. Medical technologies

US Patent Application No. 20130209970 entitled Method for Training Speech Recognition, and Training Device

This is a method for speech training of hearing-impaired individuals.

U.S. Patent Application No. 20130281856, entitled Tongue Imaging in Medical Diagnostic Ultrasound,

This discusses a system of ultrasound imaging for the tongue that can aid in the creation of individualized speech therapies.

U.S. Patent No. 8565500 entitled Automatic Patient and Device Recognition and Association System

This system would use video image processing to determine patient identity and any connected medical device. This will improve

the ability of hospital staff to coordinate movement of patients throughout the facility.

Skin Temperature Control in Therapeutic Medical Ultrasound U.S. Patent Application No. 20130281877

High-intensity focused ultrasound (HIFU) is a medical procedure that uses ultrasound therapy to destroy damaged/ diseased

tissues in patients. HIFU requires the heating of tissues through the skin using an ultrasound transducer to deliver acoustic

energy directly to the patient. Siemens filed this patent application with the USPTO to protect a system of analyzing the

temperature of a patient’s skin during HIFU (High-intensity focused ultrasound). This system uses a standoff layer between the

ultrasound transducer and a patient’s skin. This temperature feedback system can help provide more effective control of HIFU

and other ultrasound therapies.

Conclusion

Now-a-days, securing patents (or relevant IP protection) for emerging technologies is becoming increasingly significant because they are a

very important part of overall business strategy. On taking cues from big techs, like Siemens AG, who rely primarily on R&D for furthering

their businesses, we can easily make out the kind of significance intellectual property holds for businesses these days. The number

of patent applications filed by Siemens continues to rise. In fiscal 2012, the company filed some 4,600 patent applications – 7% more

than 2011. According to the European Patent Office, Siemens notched second position (just behind Samsung) in the European ranking in

2012, ceding the status it held in 2011 as the European patent champion. Overall, Siemen’s patent portfolio now holds approx. 60,200

patents.

Siemens AG is reinstating that investing in R&D, innovation, technological excellence and intellectual property is a beneficial pursuit

and a profitable business strategy. Some of the most recent Siemens patents & patent applications, encompass some or the other futuristic

technological processes. Besides staying within the desired realms and with an increased focus on medical and alternative energy

technologies, Siemens has retained its position on the global scale as one of the most innovative companies simply by investing in

innovation and timely securing valid patent rights on them.

© 2007 - 2013 Sagacious Research. All Rights Reserved.

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S O M E O T H E R T O P N E W S I N T H I S C A T E G O R Y:

Checkout Top 10 Drug Patent Losses of 2014 Read: http://goo.gl/42dA97 Recent Drug Approvals for Sunovion Pharmaceuticals Make Up for Insomnia Drug “Lunesta” Patent Expiry Read: http://bit.ly/1aFKlaG Aspartame Patent Made Public With Shocking Revelation That It is Made From Bacterial Poop Read: http://bit.ly/1aUNjOH FTC & US Dept. of Justice Rules That Pharma Patent Transfers Are Now Subject to the HSR (Hart-Scott-Rodino) Act Read: http://bit.ly/1cEx6tR

© 2007 - 2013 Sagacious Research. All Rights Reserved.

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Here are some examples of popular & profitable patent related deals:

Thus, Google’s electronic skin tattoo appears to be the next big thing in wearable computing technology.

Electronic Skin Tattoo Module

Electronic skin tattoo could be applied to throat region of the body. It includes-

An embedded microphone

A transceiver for enabling wireless communication with mobile communications device

A power supply configured to receive energizing signals from a personal area network associated with the mcd

When developed, the throat tattoo can open a new avenue for users to issue commands to their smartphones, tablets, or other mobile

devices – or even configure these devices. This invention of Google has a big stake in mobile technology, just as Google’s massively popular

Android operating system. In the disclosure of electronic tattoo patent, it is also mentioned that it can communicate over Near-Field

Communications, Bluetooth, Infrared or other short-range technology.

Possible Uses of Electronic Tattoo

• If a throat microphone (military also actively used throat microphones in World War II to improve wireless communications

between the ground and personnel on noisy airplanes) is embedded in an electronic tattoo, it could help reduce street noise and

other nearby sounds that often enter microphones and interfere with communications.

• Electronic tattoo might also be placed on the throat of an animal to pick up sounds or as a display with a user interface.

• It may also be used as a galvanic skin response detector to act as a lie detector. It is contemplated that if user may be feeling

nervous while speaking falsehoods, he will possibly exhibit different galvanic skin response than a truth telling individual and this

tattoo would possibly detect this.

Conclusion

The concept of electronic tattoo is in line with using voice commands to computers. If it gets productized, consumers will have a much-

improvised, hands-free-experience with their modern mobile devices. However, it could take years for this new and innovative gear to

launch. Even after publishing, a patent application goes through a long and complex patent lifecycle. Patent Offices often take years to

examine the patentability of the inventions in light of the report of the novelty search that they conduct. In lieu, if the inventor (or tech

corporation) himself shoulders the responsibility to seek novelty search services from a professional patent research service

provider, it would most likely accelerate the patent grant process and save much time. Moreover, it also prepares the inventor and his

attorney to amend the patent application (if at all patent office raises objections on grounds of obviousness or novelty of invention) during

the process of patent prosecution.

Google Plans Next Big Thing in Wearable Computing Tech,

Files Patent for Electronic Skin Tattoo

Recently filed patent application of Google reveals an electronic skin tattoo

for a modern mobile communication device

The Motorola Mobility (now a Google-owned subsidiary) seeks to couple the

electronic skin tattoo to a modern mobile communication device like a

smartphone or tablet in their recently filed patent application.

T E C H N O L O G Y

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It is expected that Microsoft could be earning as much as $8.8 B from Android patent licenses by 2017. Over the last few years, Microsoft

has aggressively went after Android manufacturers, forcing them into patent agreements claiming that Android community violates its

existing patents and everyone is rather curious to know about those patents in Microsoft’s intellectual property portfolio that makes it a

strong assertion entity against almost all the Android mobile vendors.

Here are listed some of the Microsoft’s patents (there are

many more in its kitty) that the company asserted

against other companies to force them into entering in

licensing deals-

• Patents ‘517 & ‘352, related to “implementing

both long and short file names in the same file system”

• Patent ‘762 covering API’s related to cellular

technology, including one that lets applications “issue

commands without needing knowledge of the cellular

telephone’s underlying radio structure and without

needing specific knowledge of the radio network’s

specific commands.”

• Patent ‘910 for “managing changes to a contact database.”

• Patent ‘376 for API that lets mobile apps learn about state changes in the device.

• Patent ‘133 covering “context sensitive menu system/menu behavior,” known more generally as a graphical user interface that lets

users “quickly and easily select/execute the desired computer resource.”

• Patent ‘054 covering online and offline transmission of data through methods that “eliminate data transmission and allow multiple

copies of data to be synchronized via incremental changes.”

• Patent ‘566 for “Generating Meeting Requests and Group Scheduling From a Mobile Device.”

We are also listing in chronological (starting from recent) order, all licensing deals of Microsoft concerning Android platform–

1. License Agreements of Microsoft (2013)

• In February, Microsoft & Nikon entered a Patent Agreement to cover certain Nikon cameras using Android platform.

• In April, Microsoft and Foxconn Parent Hon Hai Signed Patent Agreement for Android and Chrome Devices broadly covering

Microsoft’s patent portfolio to manufacturer of more than 40% of the world’s consumer electronics.

• Microsoft also granted ZTE a license to Microsoft’s worldwide patent portfolio for ZTE phones, tablets, computers and other

devices running Android and Chrome OS

In 2013, Microsoft & Nokia also entered in a 10Y licensing deal to a massive treasure trove of Nokia’s patents.

Microsoft Making Big Bucks from Royalty Fees of its

Android Patents

According to some estimates, Microsoft could be earning as much as

$8.8 B from Android patent licenses by 2017.

Introduction

It is surprising but true that 80% of Android smartphones sold in the U.S.

and a majority of those sold worldwide are covered under license

agreements with Microsoft.

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2. License Agreements of Microsoft (2012)

• LG Signed Patent Agreement with Microsoft Covering Android and Chrome OS Based Devices in Jan, 2012.

In April, Microsoft entered in Patent Agreement & Strategic Partnership with-

• Pegatron Corp. Covering Android- and Chrome-Based Devices

• Barnes & Noble for its NOOK eReader and Tablet products

• In July, Microsoft Signed Patent Agreement with Aluratek Inc. and Coby Electronics.

• In November, Microsoft Signed Licensing Agreements With Sharp, Sigma, NextoDi, Black Magic and Atomos Global covering

Sharp Android tablets, Sigma and NextoDi high-end cameras and accessories, and Black Magic and Atomos Global broadcast-

quality video-recording devices. Microsoft also settled its patent disputes with HTC and Apple.

• In December, Microsoft and EINS Signed Android Patent Agreement over android devices under the Cat brand in Germany

and also with Hoeft & Wessel AG over devices running the Android platform.

3. License Agreements of Microsoft (2011)

• In June, Microsoft entered in patent licensing agreement with General Dynamics Itronix, Velocity Micro, Inc. and Onkyo

Corp. for their devices running the Android platform.

• In July, Microsoft and Wistron Signed a Patent Agreement covering Wistron’s Android tablets, smartphones and e-readers.

• In September, Microsoft Signed a Patent License Agreement with Acer & Viewsonic covering their respective Android

tablets and smartphones. It also broadened its partnership with Samsung & started receiving royalties for Samsung’s mobile

phones and tablets running the Android mobile platform.

• Microsoft and Compal Electronics Signed Patent Agreement Covering Android and Chrome Based Devices in Oct 2011.

4. License Agreements of Microsoft (2010)

• In April, Microsoft Entered a Patent Agreement with HTC to cover their Android phones.

Conclusion

Microsoft earns somewhere between $5-$10 per Android device sold (according to a rough estimate) and thus, it is most likely to generate

$4.3 B in Android royalties in 2013, and is set to make around $1.73 B in 2014. In fact, the rise that Microsoft reported for its Windows

Phone revenue ($1.2 B in the 2013 fiscal year) is also attributable to patent licensing revenue and sales of Windows Phone licenses.

Otherwise, Microsoft’s “entertainment and devices division” (EDD) covering products like Xbox, Skype and Windows Phone was going in

loss and it was alleged that Microsoft was using the money earned from its licensing agreements with more than 20 Android

manufacturers, to conceal those losses.

All the aforementioned figures are based on assumptions. Yet, one cannot doubt that Microsoft’s patent licensing deals are turning

company’s fortunes. Thus, Microsoft’s strategic management of its massive intellectual property portfolio (via mining licensable patents,

infringer identification etc.) has now yielded reasonable profits for the company.

S O M E O T H E R T O P N E W S I N T H I S C A T E G O R Y:

Top 5 Technological Innovations of Google in 2013 Read: http://bit.ly/1asYHPQ Bank of America Seeks Patent on ATM with a USB Port Read: http://bit.ly/1cEx6tR Toymail Co.’s WiFi-enabled Mailmen an Exceptional Invention Read: http://bit.ly/1cExJU0 Microsoft Files New Patent Application with USPTO for Touch-aware Sensor on the Grip of a Tablet Device Read: http://bit.ly/1cExDMl

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