Da-Un Chung1, Sang-bok Lee2*, Seok-Kee Lee3
1Dept. of Smart Convergence Consulting, Hansung University, Seoul Korea
2Dept. of Industrial and Management Engineering, Hansung University, Seoul Korea
3Dept. of Computer Engineering, Hansung University, Seoul Korea
*Corresponding Author E-mail: dream8252@naver.com, slee@hansung.ac.kr, seelee@hansung.ac.kr
ABSTRACT:
Background/Objectives: The companies concentrate in M&A or investment for leading a VR technology, which is the one of the biggest issues in ICT industry. As VR market gets bigger, the patent litigation of NPE comes to a threatening issue. This litigation consumes a lot of money and time, so for that it has a purpose to suggest the way to minimize a company’s damage.
Methods/Statistical analysis: We will search whether the VR tech market develops or not, through the trend of patent application. As VR market gets bigger, we suggest the way to correspond to the litigation of NPE, which is the one of threatening issues. At first, by making a NPE list that is threatening for, monitoring patents that NPE is gathering with. Second, by monitoring VR tech patents, analyzes the related patents if there’s a patent gathered from NPE for the cases of changed authority. Third, acquiring a date of issue to correspond for patent litigation when submitted a VR tech application.
Findings: As VR market gets bigger, companies are spending on research and development to secure a share of the market with the better technology. Applies for patent to exercise the right of this technology, there are some NPE which makes profit from the litigation between companies without spending on research and development. This is a way to correspond the litigation with these NPE, the company suggested the way to protect this right by monitoring a status of patent purchase in the area of research and development. Patents to continuous purchased and technologies with a potential source of litigation prevent by designing around a patent or reinforcing. And above all, the patent grant a right to the person who submit patent application first uses the provisional application that can preoccupy a filing date of patent. So for that, company may protect the final result, which researched and developed by spent time and expense, moreover expect to minimize the damage of company from the patent litigation t.
Improvements/Applications: When the advanced patent was applied to the market retained VR technology, the company may minimize the damage from the patent litigation by securing the filing date of patent and corresponding of litigation through the NPE monitoring.
KEYWORDS: Virtual reality, Patent litigation, Patent dipute, Provisional application, NPE.
1. INTRODUCTION:
VR is a technology can build a space and object virtually on the platform in computer using a human’s imagination and can indirect experience the situations people can’t direct experience in reality for space and physical limitations by using five senses (sight, hearing touch, etc.). In the earlier days of VR Tech was used for the military training purpose to replace a training that takes a lot of expenses and time in virtual reality, not for experiencing difficult environment directly.1
There is a Head Mounted Display (HMD), one of the gadgets that increase the concentration of VR. Ivan Edward Sutherland of Utah University invented it in 1968. HMD is the first well-made virtual reality system. VR technology is existed from the old time and it expands the market by changing ICT related technology and contents production environment. 2
VR has a possibility to be expanded more to medical treatment, construction, education, and health care, etc., not only the limited to movie, game, or the theme park. It is applied on a diagnosis and treatment plan of the field of medicine and virtual reality simulation, and is utilized the flight, cruise training, and safety regulation test.
VR technology market expects to grow 10 times more to 70 billion dollars in 2020 than 6.7 billion dollars that expected in this year, 2016.For this reason, the global companies are trying to preoccupy the VR market.3
As VR technology grows and advanced, the companies apply the patent to be protected the right of the VR technology. As the number of patent application is increasing, the companies hold the VR technology should be prepared for the patent litigation.
There are the companies to make a profit by the patent litigation, which is called NPE. NPE (Non- Practicing Entity) is not making a profit from holding a patent and the product from it, but they make a profit through the patent litigation and the licensing.4
As VR market gets bigger, I suggest the way to prepare for it to be expected a patent litigation between NPE and the companies hold the VR technology.
2. TREND OF VR MARKET:
The global companies push forward to M&A and investment with VR related equipment and contents companies. The companies are trying to preoccupy the VR market. The government also supports a policy as the VR market gets bigger.
2.1. Trend of nation:
The government also supports a policy, as the VR market gets bigger. Look inside a trend of important nation’s policy, the United States appointed MR (Mixed Reality) as a key strategy of future technology, make a investment by applying on a public sector of traffic, medicine, national defense, etc. Europe precedes ‘Archeoguide’ project, which introduces a cultural heritage of Europe with the virtual tour of VR, and China announced ‘virtual reality industry development white paper’ to establish a road map of virtual reality industry development, and to make a standard of independent technology development. Several countries invest in it for expanding a VR market.
2.2. Trend of Company:
Companies also invest in VR technology. For example, Facebook took over VR of Oculus with 2.3 billion dollars and launched the business version of Oculus lift. ‘Selfie’, the VR platform of Facebook made a function of making conversation and taking a photo between people in different place by wearing a VR machine.
Google launched ‘DayDream’, the VR platform by investing 5.4 billion dollars to Magic Leap Company. It is a total platform that concluded hardware and software all of smartphone, headset, controller, and app based on the mobile operating system, ‘Android N’. Sony also launched PSVR for PS4, supports the exclusive VR game. Samsung electronics launched ‘Gear360’ camera. See the products in figure 1.
VR technology is used in many different fields. Disney and Hollywood movie companies are invested 650 million dollars in ‘Jaunt’, the VR solution startup company, and preparing for entering to movie, theme park, and broadcast markets. Google released a movie ‘Help’ as a VR shot film with 360 degree.
Theme park of Universal Studio and Disney Land also prepares adopting VR, and the service the game at the VR arcade in Japan. Everland in Korea opened the adventure theater applied Gear VR. Not only are the nations, the companies trying to develop a VR technology.
2.3. Trend of Patent:
To apprehend the trend of VR technology, I’ve searched tech trend using a patent data that can reach to the technology. 5 Through these patent data, it is able to analyze the competitiveness, and apprehend the tech trend, not even the technical information. So for that, I selected the patent data to search the trend of VR technology.
2.3.1 Patent Search:
Using a WIPSON, the DB of the patent information search of WIPS, collected data related to VR technology. I’ve searched Korea, the United States, Japan, and China called IP5 for patent reference with a key word of virtual reality. Search keyword was filled in with search formula in Korean and English by expanding the word of virtual reality to the similar word.
Search keyword: “virtual reality” “virtual space” “ virtual world” “virtual display” (virtual near1 (reality space world display))
|
|
Published |
Total |
|
|
US |
1,642 |
6,790 |
8,432 |
|
JP |
5,504 |
2,894 |
8,398 |
|
KR |
2,888 |
1,692 |
4,580 |
|
CN |
2.282 |
478 |
2,760 |
|
EP |
535 |
112 |
647 |
In case of existing published document and registered document by result of the patent search of 5 countries, I’ve searched the trend of total patent applications excluding an overlapped document that eliminates the published document. As seen as in figure 1 of the search result, the United States has 8,432 of a patent cases the most, Japan (8,398 cases), Korea (4,580), China, and Europe takes the place in a low. The United States is recognized as the most actively researched in VR technology field.
In the trend of patent application by nations as seen as on figure 2, patent of VR technology shows a significant increase by years. The patents are decreasing recently as you can see in a figure 2; recent patent might have a unpublished documents yet, marked with dotted line as a unpublished section.
2.4 NPE Analysis:
The company holds the VR technology should be prepared for patent litigation as the market bigger and a number of patent applications are increasing.6 there are many litigations to preoccupy the market in the technology area as the market gets bigger and bigger because patent makes a profit. There are companies has a business model to trade a patent and get a royalty from the license, is called NPE (Non-Practicing Entities).It was called “Patent Troll” before NPE. Recently it is used with a word, “Patent assertion Entities (PAE)” 7
On July, 2016, Unified Patents Co. 1 of the United States announced the trend of patent litigation in the United States of 2016 including the activity of NPE, the litigation by NPE takes 55% of new-patent litigations of 2016 and it revealed its 90% was related to the high advanced technology patent.
NPE, which has a purpose to pursue a profit from the patent litigation, also work in Korea, not just in the United States.
As seen as in figure 3, the status of accused companies by NPE, investigated from the Korean Intellectual Property Office, it has been increased 47 cases in 2010 to 161 cases in 2015 as seen as in figure 3.7
In a litigation case, the company located in the Unites States, “Virtual Immersion Technologies LLC”, files a lawsuit indiscriminately to the virtual reality figure companies, so need to be aware of it. “Virtual Immersion Technologies LLC” filed a lawsuit one of VR porno figure business operator for the violation of their own patent (US6,409,599), “Interaction available virtual reality theater entertainment system”. As you can see the drawings of this patent on figure 4, the patent they suggested was designed a format to watch the figures wearing a HMD with sitting on a chair.
They express it as ‘Theater’ to the point of view for watching figures by entering in a room some chairs equipped, and they tell recent VR businesses are violating their patent. It might be a considerable influence to other companies later if this company wins the lawsuit. In fact, there’s a possibility a most systems of watching figures with HMD using a computer are included into this patent.8
3. RESULTS:
As the market bigger and bigger, we need to make a strategy of the way to prevent litigation and to prepare of prevention. And also need the way to prepare from the patent litigation of NPE, and managing a patent strategically through the system.
3.1 Write a NPE LIST:
A company needs to write a NPE list that make a profit from the patent litigations. If the company apprehends fast whether the company is NPE or not when the company accused from, the company will be able to respond fast.
Apprehending these NPE is available by company’s litigation history, business model, holding patent technology area, and the patent purchasing history. It takes a time to apprehend NPE with this information, so it would be helpful if you make a NPE list at the first time. NPE list can be written with information that provided from a published document from foreign professional NPE Company or KOPIA (Korea Intellectual Property Protection Agency).
3.2 NPE Monitoring and Coping Methods:
By monitoring a status of patent purchasing of NPE, the company needs to prevent to avoid a patent litigation .As it is getting hard to respond if NPE file a lawsuit by setting up the portfolio, the company need to prevent the patent litigation by monitoring in advance, designing around a patent, or reinforcing a weak point of patent rights. As you see in the status of litigations of NPE top 10s, there are total 398 NPE companies that filed a lawsuit during a year in 2015, and the top 10 NPE Companies is shown in below. 9
|
Lanking |
NPEs |
Total |
|
1 |
Edekka, LLC |
102 |
|
2 |
Cellular Communications Equipment, LLC |
94 |
|
3 |
Data Carriers, LLC |
92 |
|
4 |
Rothschild Connected Devices Innovations, LLC |
62 |
|
5 |
Chri Mar Systems, Inc |
58 |
|
6 |
WetroLan, LLC |
56 |
|
7 |
Loramax, LLC |
52 |
|
8 |
Adaptive Data, LLC |
52 |
|
9 |
Adaptix, Inc |
51 |
|
10 |
Genavile, LLC |
51 |
It is one of the methods of monitoring, and it can be downloaded through the DB of patent information search in VR Technology area. By comparing information between an applicant and the current holder of a right, check the transfer of the rights. Referencing a NPE list, apprehend the status of Patents, which NPE take a patient’s right in current. Check the possibility of dispute with a holding patent in VR area or the studying technology, design around the patent, or search the data in advance to negate the holding patent by NPE. Examine an irritant data to avoid the dispute by designing around the patent or to respond against the litigation fast in dispute.
3.3Utilization method of patent system:
When invented new one, it is needed to secure the filing date for patent application to get the rights of the invention. As the rights of patent is given to the person who applies first, it is needed to secure the filing date by apply it as possible. As one of the methods to get the filing date fast, the provisional application system of the United States is used for. It is the system that able of patent application without writing a claim that insists on patent right. And, it is used a lot for secure a filing date. It is able to get a formal application by making up for the materialized contents and writing a claim within a year after the provisional application.
When judging a availability of registration, it is followed by the filing date of the provisional application. In case of the prior technology exists between the date of provisional application and a formal filing date, count the date of provisional application as a filing date, it doesn’t get rejected by the existing prior technology between the date of provisional application and a formal filing date. Oculus also took a strategy to secure the rights of technology, secured a fast filing date by using the provisional application, and then got a formal application within a year.
You can see the flows of patent, “Perception based predictive tracking for head mounted display (Us 9,063,330)” that applied by Oculus in figure 5. It had the provisional application on May 30, 2013, and then had a formal application on May 22, 2014. And, it registered on June 23, 2015. Like the patent of Oculus case, if it takes the provisional application on May 30, 2013, and then takes a formal application on May 22, 2014, it doesn’t rejected by the prior document between the provisional application and the a formal application.10
4. CONCLUSION:
As virtual reality technology market grows actively, it is expected to be focused an interest of NPE which threatening the market, this study suggest the method to respond the litigation with NPE.
The purpose of this study was a finding a method to reduce a company’s damages from the litigation with NPE which purchasing patents takes a profit from the litigation.
The first method is to make a NPE list, monitoring the status of purchasing patent, and check if there’s a similar patent with the company holds the VR patent.
For the second, after searching the VR patent through the DB of patent information search, check the companies that has changed applicant among of the searched patents. Check if there’s a NPE among of these companies. Designing around a patent by comparing the patent NPE purchases and the patent holding by companies, or prepares a patent conflict finding prior document which can make a nullity a purchased patent by NPE.
Third, it is the method to use a patent system. Use the provisional application system of the U.S., which is able to preoccupy the filing date of patent. The company will be able to prepare the patent conflict using these NPE monitoring or the provisional application, and it is also expected to reduce the time and expenses to preparing a litigation when accused from.
Monitoring NPE takes a lot of time. It is needed to study of building a NPE monitoring system. It may reduce the time for monitoring the NPE, if the anticipating NPE conflict program is developed later which comparing between a current holder and NPE list among of the cases extracted that the difference between the applicant name and current holder of rights, after search the patent of certain technology through the patent search DB. It will be able to monitor the newly established NPE, and prepare the conflict by building an NPE list updating system through the purchasing history of patent and the litigation history of the current holder of rights from the research result in certain technology area. It is needed to analyze and systematize of various business models about the methods to reduce the company’s damages from the litigation with NPE.
5. ACKNOWLEDGMENT:
This study was supported by the Research Program funded by the Han-Sung University.
6. REFERENCES:
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Received on 20.06.2017 Modified on 17.07.2017
Accepted on 10.08.2017 © RJPT All right reserved
Research J. Pharm. and Tech. 2017; 10(9): 2939-2944.
DOI: 10.5958/0974-360X.2017.00520.0