The nightmare of technology

Dell, Intel, Microsoft, Apple, McAfee, nVidia . are the names that are so familiar to computer lovers across the planet but are no stranger to . courts. The reason is simple: they often get into trouble with patent ownership laws.

In the first years of the 21st century, the world witnessed a technology race between manufacturers (hardware as well as software). Successful application of a new technology can bring in billions of dollars in profits but can also end with a 'punishment' worth the equivalent of profits.

Big firms always own more patents than small firms, but their number of times . goes to court. Microsoft is probably the most sued company. Multimedia support multimedia technology in Internet Explorer has "burned" the world's largest software company 520 million dollars after Chicago court declared Eolas Technologies and the University of California won the case on September 29, 2005.

Source: TTO Two months ago, the 'giants' also had to swallow up to $ 8.96 million in compensation for Guatemalan scientist Carlos Armando Amado for illegally using software to transfer data between Microsoft Excel. and Microsoft Access.

Most recently, on August 23, 2006, Microsoft had to compensate z4 Technologies for $ 140 million for violating Product Activation patents.

However, such compensation cannot be compared to the amount Microsoft must pay to Sun Microsystems in April 2004. After 10 years of pursuing the lawsuit, the two parties 'reconciled' and began to cooperate, in return Sun received nearly 2 billion USD.

Not only Microsoft but other major software firms also have trouble with ownership of inventions. AT&T has warned Apple, CyberLink, DivX, InterVideo and Sonic Solutions for "using the temple" MPEG-4 technology. Meanwhile, Forgent 'pocketed' over $ 100 million from 35 companies thanks to the JPEG format.

By April of this year, Apple was recalled by the court because Burst.com claimed that Apple's iTunes Music Store, iTunes software, iPod and QuickTime Streaming devices violated their patents. Burst.com won Microsoft in 2005 in a similar lawsuit. At that time Microsoft also had to 'mediate' by 60 million USD.

Google gets Rates Technology sued for 'missing' its application in Google Talk software, while McAfee has trouble with DeepNines. Even open-source software firms like Red Hat did not escape: FireStar accused them of violating an invention related to object-oriented software.

Meanwhile, the hardware world is not 'smooth'. World-leading processor chip maker Intel has just returned to court on Oct. 12 after being charged by Transmeta with "stealing inventions" and "causing $ 100 billion in damages". Earlier, at least Intel had to pay a fine for "using the temple" in July 2001 and March 2004 with a total fine of nearly $ 1 billion.

Well-known graphics processor (GPU) manufacturer nVidia was also sued by Scanner Technologies for using its ball grid array on September 19.

The majority of patent infringement lawsuits that infringe upon patent ownership are protected by small companies and the defendants are big firms. More specifically, according to Wikipedia statistics, up to 99% of patent infringement lawsuits end in the way of reconciliation. Of course there is no mediation for free!

Looking back at Microsoft's costly mediations ($ 2 billion for reconciliation with Sun) or Intel ($ 1 billion for mediation with Intergraph and MicroUnity), it can be concluded that 'market dispute' is the cause. The main lead to the 'movement' to sue due to the current 'patent infringement'.

When small companies are unable to compete, being swallowed by market giants, one of the wisest solutions is . sue the opponent. If they win, they will receive a large amount of compensation, enough to stabilize their financial situation; If they don't win, they have nothing to lose.

Of course, the number of '99% reconciliation 'that Wikipedia statistics is sufficient to ensure the safety of' tiny David daughters' and the 'patent infringement, invasion of property rights' nightmare will remain continue to haunt 'Goliath giants' in the information technology world.

Hoang Minh