Firms face more patent disputes

Samsung SDS introduces key technology trends for 2013

By Kim Yoo-chul

A local technology expert has warned Korean technology companies should increase efforts for coping with international patent disputes because a growing number of their rivals abroad are expected to file lawsuits against them.

The warning came at a press conference hosted by Samsung SDS, Tuesday to unveil ``2013 IT Mega Trends’’ to dominate the technology world.

“We believe that Korean technology companies, which are generally late in responding regarding intellectual property issues, should be more active about defending their businesses by implementing finely-tuned strategies. Korean firms have so far been passive about patents. When you want to prepare for the future, then you should invest more in patents,’’ said Cha In-hyok, vice president of Samsung SDS.

“Patents are essential and exclusive. Decades ago, they only focused on technologies. But patents themselves have now become a new business model. They are seeing comprehensive segmentation. We should catch up with developed countries by securing own patents,’’ Cha said

According to an observation from the solutions unit of the Samsung Group, blurring lines between software and hardware amid industry convergence and collaboration are pushing technology companies to struggle with more patent disputes.

Apple, Microsoft and even Google have the deep pockets needed for long-term patent disputes but their opponents have shown that they are happy to fight fire with fire. Like the observation offered by the SDS vice-president, if everyone fires off lawsuits, the entire industry will become bogged down in a costly quagmire of patent suits.

Referring to Intellectual Ventures ― a U.S.-based patent troll ― the executive said the implementation of patents should be varied and applied according to countries and culture.

Lawyers are benefiting from the disputes. But Microsoft, meanwhile, is raking in millions in revenue from its license agreements with all major technology companies. For consumers, patent disputes are eliminating choice, hurting competition and leading to higher prices ― which was Samsung’s claim before last month’s California verdict that awarded Apple $1.05 billion.

It’s tough to see any positives coming out of patent suits these days. Maybe Microsoft and Apple will remain buoyant but in the end, consumers seem destined to suffer because of such legal disputes.

“That’s why technology companies are accelerating efforts to sell solutions not just to sell single products. Consumers can obtain greater creative value through buying patent-combined products,’’ said the Samsung executive.

But he didn’t comment on the dispute between Samsung and Apple because that fight doesn’t involve his company but Samsung Electronics.

New technology trends

During the conference, SDS identified nine elements as big flows or movements in global information and communications technology industries with potential to cause a large impact on them.

SDS said the trends could be summarized as new values, new threats, new creativities and new growth. When looking for new values, the Samsung executive said integrated digital devices are being widely used, therefore new values are being created to give users new services and to give firms more room to enhance their competitiveness.

``Technology evolution, however, is also creating new dangerous situations such as intelligent and sophisticated cyber attacks and crippling patent disputes, which we characterize as new threats,’’ Cha said, adding convergence between information and communications technology and the automobile is also creating an opportunity to evolve the automobile into the new category of very smart devices, which SDS identified as new creativities.

New growth is based on the rise of firms external to, but dependent on the technology industry, because companies are taking advantage of the evolution of eco-systems.

Valuable big data, progress in cloud services, consolidation, advanced cyber attacks, patents are strategic weapons, contextual devices and services, smart vehicles, re-visioning of green information technology, and rapid business development are the nine elements for which SDS expects to see for new technology trends in the foreseeable future.

“Highly-organized, intelligent and often persistent new cyber attacks are emerging and threatening all nations and their infrastructures,’’ according to Cha.

“Through use of open-source software, cloud computing, and/or social funding, developing new products, establishing businesses, and even accomplishing Web scales, are all achievable at unprecedented speeds,’’ he told reporters.