Posts in Business

First, the biggest mistake lawyers make is that they primarily write for other lawyers.  That is a huge mistake.  There are only so many lawyers in any legal niche, and only a subset of them are going to be willing to read news or information on the Internet.  A smaller subset of those who use the Internet to acquire information will be willing to read blogs.  So if you are primarily writing for lawyers that means your audience is going to be kept small. Additionally, lawyers don’t typically turn into clients. So if you write like a lawyer for an attorney audience you are almost certainly missing the mark.

Even if the dispute with Apple and FlashPoint has not been fully resolved by the time of the final sale of the patent assets Kodak may still be able to proceed with the sale if they establish “adequate protection” under the Bankruptcy Code for Apple and Flashpoint at the time of sale. Kodak’s adequate protection could take many forms depending on the value of any remaining alleged interests, the amount of the sale proceeds, and other factors. Alternatively, the Bankruptcy Court also authorized Kodak to sell the patents subject to Apple and FlashPoint’s claims, if mutually agreed between Kodak and the winning bidder.

The IP Professional community must find ways to work with Wall Street to help educate and protect the credibility of IP as an emerging asset class, and not allow IP assets to become cannon fodder for deals or the investment “flavor of the month.” The InterDigital-Intel deal can be viewed as call to arms. Wall Street will ultimately choose to enlist or not credible transaction analysis. In most trades there are winners, and sometimes losers. Smart IP bankers will choose to do the homework and not be so quick to determine who, in fact, the beneficial parties are. Given the inefficiencies inherent in the patent marketplace, it is quite possible for a liquidity event like a patent transaction to have multiple winners. Reminding the financial community of this will not be easy.

No matter where we go these days, social media surrounds us. It seems everyone is saying, “Follow us on Twitter.” “Like us on Facebook.” “For More Information Scan Our QR Code.” Just this week alone I have seen at least a dozen places in my everyday life where social media has come into the real world; At church, On my way home from the airport on the backs of hotel shuttle vans; At my local coffee shop to name a few. Social media is here to stay and businesses of all sizes know it. But what many smaller businesses don’t know or care to realize is that there are several bad habits that still need to be broken in order to make the most out of their social media strategies. Following is a list of these common bad habits and what small business can do to get it break away from these same old mistakes.

A wholly owned subsidiary of Tessera Technologies has acquired a Tier One qualified camera module manufacturing business. While it likely wasn’t the only motivation, it would be naive, however, not to recognize the obvious reality that while this will significantly raise their bottom line it will also provide litigation advantages. Nevertheless, the reality is that Tessera and others shouldn’t have to explore manufacturing solely for the purpose of insulating themselves from ridiculous, asinine arguments by those in Silicon Valley who couldn’t innovate their way out of a wet paper bag. Having said that, if you are merely an innovator, patent troll, NPE or whatever you want to call it you really need to consider developing at least some manufacturing capabilities.

It was less than two weeks ago that AOL announced that it completed a $1.056 billion patent transaction with Microsoft Corporation (NASDAQ: MSFT). At the time of the announcement of the Microsoft transaction AOL explained that the company expected to provide additional details to shareholders by the end of June. Earlier today, AOL Inc. (NYSE: AOL) announced that it has commenced a modified Dutch auction tender offer to repurchase shares of its common stock up to an aggregate purchase price of $400 million, making good on its earlier promise to shareholders. Indeed, this announcement is being touted by the company as a first step in returning 100% of the proceeds of its recent patent transaction to its shareholders by the end of calendar 2012.

Merck and AstraZeneca Agree to Amend Partnership – Theradiag Acquires Innovative MicroRNA Technology Platform – 8×8 Sells Patent Family – MPEG LA Announces Call for Patents Essential HEVC – International Rectifier Enters Into Patent License Agreement – Acacia Subsidiary Acquires 156 U.S. and International Patents – Acacia Subsidiary Acquires Patents for X-Ray Powder Diffraction.

An assignment indicates who owns an issued patent or pending patent application. They are registered with the USPTO and available for public inspection. There is a special type of assignment called a “security agreement”. A security agreement indicates that a patent owner has used its patents as collateral for a loan. The security agreement says that the lender will get ownership of the patent if the current patent owner defaults on the loan. The security agreement also restricts what the patent owner can do with its patent so that the value of the patent is preserved. A patent owner might be obligated, for example, to pay the maintenance fees for an issued patent. Once the loan is paid off, the security agreement is released. If the loan goes into default, however, the ownership of the patent is transferred to the lender.

Yet another ad that the FTC took issue with was one featuring celebrities including Kim Kardashian and Brooke Burke, which aired during the 2011 Super Bowl. In the ad Kardashian is showed dumping her personal trainer for a pair of Shape-ups. In the Burke ad consumers were told that the newest way to burn calories, tone and strengthen muscles was to tie their Shape-ups shoe laces. Clearly, the message is that you don’t need to work out if you wear Shape-ups, which turns out to be untrue. What a surprise! Frankly, I’m not sure that these ads deserved the ire of the FTC.

It is also probably correct to say that the current business model for licensing technologies is extremely inefficient, not only because of the lack of a central clearinghouse, but because many of those who would be most interested in acquiring rights to exciting new technologies are really too small to attract the interest of patent owners. Even if they are large enough to attract interest from patent owners it take real time and real money to acquire rights. You don’t simply walk into a neighborhood bodega and order the rights to X technology for Y dollars, put it into your knapsack and walk away. Negotiations are hardly standard, must take into account multiple unique scenarios and are like any other business deal — unique. That requires attorneys to get involved and we all know what happens then, right? Too frequently attorneys get in the way of doing a deal rather than facilitate one.

The time has now come for Kodak to attempt to shed its non-strategic patents with the sale of roughly 10% of the overall Kodak patent portfolio.  Without an acceptable initial bid already in place Kodak will roll the dice and angle for an auction that would take place in early August 2012, assuming more than one bidder emerges.

Social Media is not a fad. It is not something that is going to go away nor is it going to be replaced by something bigger and better. Most businesses have embraced social media and all that it has to offer. Perhaps you, yourself have taken a ride on the social media bandwagon. But, even if you have a well-established social media presence, are you really getting the most out of your online relationships? Are you missing opportunities to truly leverage your business relationships online in order to reap bigger rewards and sales in the real world? Following are 5 easy ways that you can take to utilize your online business and real-world relationships to increase your overall social media ROI.

With the advent and rise of the Internet, digital property rights have become an increasingly hot-topic in the Board rooms and Executive Offices of major companies, particularly those in the hi-tech industry. Much like the information protected under intellectual property rights, digital products provide their creators with certain protections under the law. The problems and legal challenges facing major companies like Yahoo and Facebook will help better define the laws surrounding digital property rights, and likely present opportunities as well as a whole host of new legal questions.

Preventing artificial supply-side constraints? Now my spidey-senses are activated. That sure has a familiar ring to it, doesn’t it? I am skeptical about the desire to eliminate market inefficiencies when combined with simultaneous attempts to drive down royalty payments, thereby compensating innovators only for some perceived benefit to the ultimate consumer. The goal of the first, to reduce inefficiencies in a bilateral licensing negotiation is laudable, but minimizing the “artificial supply side constraints” based on the market as viewed by the ultimate consumer is a recipe for undervaluing innovative value-adds. And let’s not forget that some (perhaps many) of these value-adds mean the difference between having desirable functionality or not, and having a viable product or not.

Despite the reality that history teaches about the high-tech industry, shareholders/investors and the popular press will dive in and report what is being said by the newsmakers. Little is ever done, however, to figure out what all this actually means. Perhaps this is because the very nature of preparing a patent strategy is something that requires both understanding of the patent laws and a healthy understanding of business realities and evolving technologies, and not just business realities or technological advances in the abstract. Rather, in order to truthfully plot a course calculated to succeed company leaders need to be cognizant of the actual business realities facing the company, not the talking points of lobbyists or those who write SEC filings. Furthermore, a comprehensive understanding of the companies own research and development, as well as where the industry is heading, is crucial when attempting to create the patent strategy.