Patent law is supposed to reward innovation and provide incentives for inventors. Instead, the muddled system we’ve created often does the opposite. Granting of questionable patents, including many software patents, ends up creating a minefield of litigation risk. The end result is that companies spend outrageous sums defending and settling such suits. Many go so far as to acquire competitors in order to own their patent portfolios, shield themselves from further risk and accumulate intellectual property ammo that can be used to sue others.

The recently announced acquisition of Motorola’s smart phone business by Google is a prime example, according to many. The value of Motorola’s patents has been noted
by almost every news report about the deal and not because these patents will allow Google to innovate further or build on existing technology.

According to the Wall Street Journal, Google’s top attorney recently noted that competitors in the field purchase wireless patents because they want to make “Android devices more expensive for consumers.” This could be why Microsoft and Apple, Google’s Android competitors, recently teamed up to buy thousands of patents from Nortel.

Google’s response? Purchase thousands of wireless patents held by Motorola.

Google has stated that the acquisition of Motorola’s smart phone business is about more than patent litigation, that it serves other useful business purposes. But
considering the current state of our patent system, especially with regard to software patents, many feel otherwise.

Schein & Cai was recently named one of the Top US Patent Firm for 2010 by Intellectual Property Today®. We assist companies in Silicon Valley and beyond,
including San Jose, Santa Clara, Mountain View, Sunnyvale, Morgan Hill, Oakland, San Francisco, Palo Alto, San Mateo, Santa Cruz, South San Francisco, Daly City,
Cupertino, Saratoga and Emeryville.

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