Research in Motion Inc (RIM) has settled its long-running patent dispute with NTP with a US$ 613 million licencing deal. The case has prompted some commentators to question the viability of certain aspects of the current US patent system. Calls for patent reform have included an examination of whether purely software processes should be patentable. After a relaxing of judicial attitudes to the definition of patentable subject matter, over the past two decades in the US there occurred a dramatic increase in the number of business method and software patents. Some observers have urged a legislated end to this expanded scope of patentable material, calling it an unfortunate business experiment. In other circles, advocates for an increase in funding and training for examiners at the US Patent and Trademark Office contend that currently overworked examiners would have more time and resources to check for prior art, so that fewer patents would be granted which are later open to attack. In the meantime, for some observers the case highlights the benefits of a "settle early" strategy often taken by major US companies. Given the uncertainty and high cost of patent litigation, many prefer to swallow their corporate pride and pay up to patent trolls. For a copy of the RIM news release, see: http://www.rim.com/news/press/2006/pr-03_03_2006-01.shtml For articles on patent reform, visit: http://www.slate.com/id/2135559 and http://papers.ssrn.com/sol3/papers.cfm?abstract_id=869826 For a synopsis of the RIM/NTP dispute, see: http://makeashorterlink.com/?I13923BCC Summary by: James Kosa

E-TIPS® ISSUE

06 03 15

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