Wednesday, July 20, 2011

#MoDevDC everyone is getting sued - Now what?

I am here @Teqcorner. The third Wednesday o the month is a business focus First Wednesday is a technical focus.
This session is about the current legal and patent Landscape in mobile development.
This is a practical View of the situation.
Why do you need to care?
Issue 1 - bad patents
Issue 2 - patent assertion is lucrative $10B litigation costs 2005-10.
Issue 3 - asserting patents v write software
Issue 4 - smaller developers being targeted
Issue 5 - nobody is safe
Issue 6 - nobody is safe anywhere or of any size
Issue 7 - no penalty for a failed assertion
Issue 8 - it is cheaper to attack than defend
Issue 9 - USPTO low standards of quality for patents
Issue 10 - high concentration of startups makes for great targets. USA is the worst market foe this App developers should organize to defend themselves. Organize to get commitments from platform makers.

The views of a developer....

What to do:
1. Day 1 - Panic. But don't do anything major for 4 days.
2. Day 5. Look for support. Lawyers , others in same situation, research.
3. Day 10. Evaluate options. Fight v settle. 4. Day 15. Act. Plan, set goals and execute. Get back to work!
Patent infringement law suit 101
Examples applicable to a mid market law firm.
Assess exposure Initial defenses $15-50k
Settlement discussions $15-30k
File an answer $10-25k
Motion to dismiss/transfer $15-20k
Scheduling/pre trial $15-20k
Fact and expert discovery $800k-$1M
- interrogatories
- document requests
- discovery disputes
- dispositions
- experts
Claim construction/markman $200-250k
Mediation/settlement $25-50k
Summary judgement $150-200k
Prepare for trial $250-300k
Trial $600-700k
Total $2.0-2.5M
Check for prior art to invalidate patent or identify non-infringement.
Do We need a kickstarter platform for legal defense.
Patent Troll AKA non practicing entity.
About 90-95% cases settle before trial.
iOS and android have productized development. So what can be done together?
Article 1 partners has created an online community to improve patent quality.
NPE have been growing exponentially.
Patents have to be valid, novel, obvious and of patentable subject matter.
Litigation costs are rising. Average is $3G per litigation.
Large companies receive over 100 infringement notices per year. This is trickling down to smaller entities.
What to do: - monitor issued patents
- collect prior art
- pool prior art
Q & A discussion
An LLC, properly operated, can protect personal assets.
Defense has a big drain on your time which has a significant cost. NPEs may still seek licensees because it builds credibility when facing bigger companies.
If app developers band together they should make sure that they are able to share settlement details with members of their group. Transparency and sunlight is the best Protection. will time stamp and make public your prior art Best advice for developers: act like a company. Don't register as an individual in the app store. Put your products in to a company.
That's a wrap..... All in all a fascinating discussion.
Mark Scrimshire
....Sent from my iPhone