Tuesday January 18, 2011 – Myra Moore
There wasn’t a lot of technical innovation at the latest edition of the Consumer Electronics Show that concluded last week, but that is not unusual for a trade show that is supposed to focus on end products that can be shipped to retailers and TV service providers in the near future.
The real innovation wasn’t technical but was of the business variety. With the plethora of tablets, smart phones, and internet-connected devices, the annual meet up that used to have audio/video products at the center of its existence, felt more like an Internet-centric show than a consumer electronics show.
We all knew the Internet/CE nuptials were coming but the engagement period was long and we weren’t sure exactly when the union would take place. Let’s call January 6, 2011 the wedding date so we can start wringing our hands over how the couple will adjust to a shared and intimate existence.
This marriage will probably give a new definition to honeymoon if the union of phones and computers is any indication. Smart phones are the hottest intellectual property battleground for traditional IT, software and mobile phone companies. Tech giants like Microsoft, Motorola, Apple, Google, and RIM are suing one another over patent infringement as these converged devices use technology from varying industry sectors. Some of those companies take the stance that these converged devices are nothing more than mini computers and are infringing on IPR owned by software and operating system developers. So, now we can look forward to rival clans with different IP cultures thrown together at the next blended-family event.
Some of these disputes will be worked out with cross-licensing agreements, but judging from the smart phone litigation, some disputes will likely end up in court or in settlements. High-tech litigation is expensive and last week’s eye-popping announcement that Intel agreed to pay Nvidia $1.5 billion to settle a patent infringement suit illustrates just how high the stakes can be.
Patent disputes can drive up costs and slow down product availability – not to mention serve as a blunt instrument for gaining and maintaining market share. Maybe most of the battles fought over smart phones will preempt clashes bound to erupt over tablets and connected CE devices. The seemingly insatiable demand for getting internet-delivered content to all of our devices suggests that the sorting out of “who owns what” is only beginning. So much for the honeymoon.
