microsoft
21 May 2013Patents

Microsoft backs clearer US patent records

Tech company Microsoft is publicly supporting draft US patent legislation that aims to bring more clarity to patent ownership.

The End Anonymous Patents Act (EAP), introduced on May 17, wants to force patent owners to reveal their identity shortly after their patent is granted or transferred, removing their ability to remain anonymous.

Horacio Gutierrez, deputy general counsel at Microsoft, wrote in a blog post that the current system, which does not require patent owners to disclose their identities, leads to inaccurate and incomplete details being listed.

“Some patent owners take advantage of this obscurity to try to hide what they own for tactical advantage in licensing negotiations or to avoid complying with patent licensing commitments,” he said.

The EAP Act, Gutierrez said, would “help improve the operation of the patent system, facilitate licensing and thus reduce litigation, and for that reason [we] are heartened by the introduction of this bill”.

The act was introduced by Ted Deutch, a US representative for Florida’s 21st congressional district and is supported by Patrick Leahy, a senior senator from Vermont. Both men are influential politicians in the IP arena, said Robert Stoll, partner at Drinker, Biddle & Reath LLP, which means the act has a good chance of being approved.

He added: “Microsoft will not be alone in this [support for the bill]. I expect IBM and other big companies to support it. This will have very strong support”

Rodney Sweetland, partner at Duane Morris LLP, said: “The bill is not terribly controversial and there is no public policy argument against it. There is no explanation why the system doesn’t have this openness already, and there is no empowered constituency that can make any strong commercial or legal arguments against it.”

He added: “In large part, this is directed against non-practising entities, known as patent trolls. Something needs to be done.”

The act would have big implications for companies with large patent portfolios, according to Sweetland, forcing them to reveal details about patents that can sometimes be obscured by layers of business divisions.

In a blog post, Norman Van Treek, attorney at Sheldon Mak & Anderson PC, singled out Microsoft for refusing to divulge details about various patents to “threaten both the open source community and now anyone producing an Android device”.

Asked about Van Treek’s allegations, Sweetland said that “any large company with a portfolio like Microsoft there will inevitably have issues about some number of its patents. Whether or not they do it intentionally, I can’t say”.

Microsoft operates a successful patent licensing programme, particularly covering Android technology. The company has signed 20 Android licensing deals, including with Samsung, HTC and LG, and claims that 80 percent of Android smartphones sold in the US and a majority of those sold worldwide are covered by Microsoft agreements.

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Adrian Tapping at atapping@newtonmedia.co.uk