Post 14: Tela Innovations’ Patent War

On Tuesday this week, the U.S. Iternational Trade Commission voted to investing allegations that LG, Nokia and others were importing smartphones that infringe integrated circuit patents held by Tela Innovations Inc. ITC also said it would investigate Google, Motorola, HTC and Pantech to see if these companies violated Section 337 of the Tariff Act of 1930 by importing phones that copy seven of Tela’s patents.

Many large mobile phone and tablet companies, such as Apple, Samsung, Nokia have been involved in a large number of patent disputes. Tela’s actions remind us how easily those electronics device manufacturers can be sued by the components of the technology patent developer or supporters. I remembered on Monday’s lecture, Dr. Well mentioned that there were more than 250,000 active patents relevant to today’s smartphone. Thus, it’s quite difficult for the smartphone companies to check every single patent before release their new products, which also caused a relatively large number of smartphone related lawsuit.

California-based Tela sued those companies in both ITC and Delaware federal court last month. In Delaware’s court, Tela requested for permanent banning and compensation. In ITC, Tela proposed the prohibition of infringing devices into the U.S. market. I think that is another big headache or nightmare for those companies. ITC has the similar right as the court, once it has been hearing and found that certain types of imports into the U.S violates U.S intellectual property, ITC has the right to issue an order prohibiting the import of such goods to the U.S. More and more companies choose to sue other companies due to the following reasons: the investigation process of ITC is faster than the court; ways of finding evidences are loose; ITC can effective banned the import of oversea products into the U.S. market; judges in ITC have more experience in patent litigation.

In my opinion, it seems like Tela would not like to negation with any of these companies. Tela was founded in 2005. If I were Tela, I would discuss with those companies about licensing issue rather than sue them through ITC. As a young and starting company, I think it might be good to make friends than making enemies. Meanwhile, as an electronic technology company, it will have connections with other technique companies. I don’t doubt the profit Tela can get whether it can win or lose the case; however, unless it is big enough as Samsung, which is strong enough to fight with other big companies. Otherwise, it might be a huge obstacle for Tela to develop in the future.