Who's Jumping Into Patent Pools?

It was interesting to see this interview with Harvard Business School professor Josh Lerner on the subject of Monetizing IP. Particularly topical this week was Professor Lerner's answer to this question about patent pools, posed by Sean Silverthorne:

Q: What is happening in the area of patent pools? Are these becoming more popular and, if so, in which industries?

A: In a patent pool, firms blend their patents with those of other firms. These pools allow users to access a number of firms' patents simultaneously, thereby avoiding the "patent thicket." In many cases, the pooling agreements also specify the pricing schedule in the agreement that establishes the pool, assuring that no party attempts to extract very high fees or to increase its fees after users are locked in.

Patent pools date back as far as the 1850s but have proliferated in recent years. Goods covered by patent pools totaled at least $100 billion in the United States in 2000, while multiple standard-setting bodies today cover virtually every high-technology product. Moreover, the scope of these activities is likely to grow in future years. In many industries, leaders have expressed frustration about the proliferation of patent thickets—the large number of overlapping awards—and the ensuing rise of costly and time-consuming litigation. In many cases, technology sharing has been proposed as a remedy.

And the scope of industries considering adopted patent pools has also grown. While the patent pools have been well established in basic manufacturing and electronic industries for decades, they have been seen as a potential solution for increasingly prevalent patent licensing issues elsewhere, such in new biotechnology-related fields. For instance, a great deal of interest has surrounded proposals to use patent pools to address the multiplicity of rights that are slowing research in critical diseases such as AIDS and breast cancer.

Patent pools are only one way in which firms share their technology with each other. The rapid growth of open source software over the course of this decade has been highlighted in numerous press accounts. The multibillion dollar initial public offerings of Red Hat and VA Linux, IBM's embrace of open source and its investment of billions of dollars into these projects, and the recent (though qualified) embrace of Linux by Microsoft, formerly a bitter opponent: all these events have been extensively documented. What is much less well appreciated, however, is that open source is only the tip of the iceberg of the technology sharing that is reshaping high-technology industries. Patent pools, standard-setting organizations, and technology licensing efforts are having a profound effect on how firms seek to exploit new discoveries.

This Q&A is especially topical this week  when, that very same day the interview was published, it was announced that Alcatel-Lucent, Cisco, Clearwire, Intel Corporation, Samsung Electronics and Sprint have formed the Open Patent Alliance (OPA) to advance a competitive and open intellectual property rights model stimulating a larger WiMAX industry that supports innovation through broader choice and lower equipment and service costs for WiMAX technology, devices and applications globally.

Zen and the Prior Art of Disclosures

This week, as the New York Times reported that writers blog till they drop dead, we were relieved to see IBM's technical disclosure in the IP.com Prior Art Database, promising a more relaxing experience for bloggers with the laptop of the future.

Method to use laptop generated heat for 'aromatherapy'

Often, certain smells can stimulate work productivity. Motivation and Healing by smell is a very common practice and long time tradition. How nice would be to be stimulated by the scent of Chocolate or a Coffee without have to digest it? Since one's convenience is sought after as a top priority in today's society, it is only fitting that it be addressed in respect to the integration of today's technology and the common practices or classic traditions of aromatherapy. 'Aromatherapy' via a fragrance gel/oil and your laptop's generated heat may be all you need to complete your daily tasks list more efficiently. This approach can result in enhance work experience and increased productivity.

Until that innovation finds its way into an IBM laptop of the future, technology bloggers should work on developing zen habits for haiku productivity.

Eco-Patent Commons Meets Open Innovation

The Eco-Patent Commons is an initiative to create a collection of patents that directly or indirectly protect the environment. The patents will be pledged by companies and other intellectual property rights holders and made available to anyone, free of charge. The Commons is a resource for connecting those who have had success with a particular challenge in a way that benefits the environment and those who are facing similar challenges.

With the launch of the Eco-Patent Commons earlier this week, four companies -- IBM, Nokia, Pitney-Bowes and Sony -- joined with the World Business Council on Sustainable Development to do something almost unprecedented: they agreed to relinquish their control over inventions that could benefit the planet in order to spur innovation for the greater good.


Thus begins the transcript of a very interesting podcast interview with IBM's Vice President of Environmental Affairs, Wayne Balta, on GreenBiz Radio.

Wayne Balta: The Eco-Patent Commons is a first of its kind initiative under which we at IBM and some other like-minded companies are partnering with the World Business Council for Sustainable Development to create a place where patents related to the environment can be pledged by the patent holder so that others around the world can access them and use them free of charge.

The basic premise here is that in the environmental arena, sharing knowledge and technology has the great potential to better address the world's problems. That there exists no organized way today to do this on a global basis. That leading businesses may hold patents that are not an essential source of business income to them. And that by sharing them with others on a global basis, both developed and developing countries, it can help people develop in a more sustainable way. And for those who pledge the patents it might also need to lead to new opportunities for innovation and collaboration with others, whom you might not otherwise reach.

...you know, pledging patents for free use by others is not necessarily a common way companies think about their portfolio of intellectual property and we at IBM recognize that. Now, we at IBM probably have as much or more experience as anyone with this because we have also done prior patent pledges. So we recognize that as we've spoken to others about the idea that it isn't something that you're innately thinking of doing. But as people think through the best use of some of this IP and the opportunities that could come out of a commons like the one we're creating, many have realized and others I believe will realize that it can be a win-win situation.

It can be a win for innovators in other parts of the world, who might look at these ideas and further them and use them as the basis of additional solutions. And it can be a win for those who pledge because it could open up opportunities to collaborate with people that you might not otherwise have collaborated with.

In a joint press release, other member companies of the Eco-Patent Commons today issued the following statements:

Donal O’Connell, Director of Intellectual Property, Nokia, said, “Environmental issues have great potential to help us discover the next wave of innovation because they force us all to think differently about how we make, consume and recycle products. From Nokia we have pledged a patent designed to help companies safely re-use old mobile phones by transforming them into new products like digital cameras, data monitoring devices or other electronic items. Recycling the computing power of mobile phones in this way could significantly increase the reuse of materials in the electronics industry.”


Angelo Chaclas, Vice President & Deputy General Counsel, Intellectual Property and Technology Law at Pitney Bowes, said, “The Eco-Patent Commons offers an effective framework to develop and make available technology that helps combat climate change and reduce the release of carbon dioxide. Our objective for the Eco-Patent Commons is to promote the spread of environmentally conscious technologies that make conservation and preservation a priority.”


Hidemi Tomita, General Manager of Sony Corporation’s Corporate Social Responsibility Department, said, “To more effectively protect the environment, it is time for business to join efforts rather than tackling the issue alone. We truly believe this joint effort with our peers will mark a significant step and help transfer innovative ideas and technologies across industries and beyond to developing countries. We are excited to launch this platform to share technologies that will bring about positive changes in the environment.”


These ideas are exemplary of a new wave of thinking described in a recent blog post on Open Innovators. "Companies need to get a lot better at bringing external ideas and knowledge in from the outside, while at the same time allowing internal ideas not being used to flow outside the organization."

The World Business Council for Sustainable Development (WBCSD) is a CEO-led, global association of some 200 companies dealing exclusively with business and sustainable development. The Council provides a platform for companies to explore sustainable development, share knowledge, experiences and best practices, and to advocate business positions on these issues in a variety of forums, working with governments, non-governmental and intergovernmental organizations. Members are drawn from more than 35 countries and 20 major industrial sectors.

Get the FAQs and download the Brochure of the Eco-Patent Commons in pdf here.

At IP.com Inc., we'd like to get involved in support of the Eco-Patent Commons project to expand this initiative to include the sharing of innovative ideas and technologies that directly or indirectly protect the environment, which have not yet been patented but are otherwise in the prior art and knowledge of the member corporations, the scientific community, and academia.

IP.com's Prior Art Database technology could be made readily available, free of charge, as a customized repository of  global innovation in support of the Eco-Patents Commons. How amazing would that be?