RIM and Mosaid: The Patent is Only the Beginning

As the high-tech economy matures and the manufacture of many high-tech products slows, it is more important than ever to harness and protect your intellectual property.   One method of doing so is by patenting innovative technology.   However, recent cases involving successful Canadian companies illustrate that obtaining a patent is only the beginning. Mosaid Technologies Inc., a Canadian company based in Ottawa, is embroiled in two lawsuits over its US patents on Dynamic Random Access Memory (DRAM).   The first suit Mosaid initiated in 2001 was against Samsung for alleged patent infringement.   The second suit was commenced by Infineon, seeking to invalidate Mosaid's US patents, and Mosaid, in turn, counterclaimed for infringement.   In recent years, Mosaid has been forced to dramatically cut production and staffing, and licensing fees have become an important source of revenue.   As a result, Mosaid is vigorously defending its IP rights. For an update on the litigation, visit these pages on the Mosaid web site: http://www.mosaid.com/licensing/samsung_litigation_update.htm; or http://www.mosaid.com/licensing/infineon_litigation_update.htm. Research in Motion (RIM), a Waterloo-based company, is another Canadian success story.   RIM, which makes the ubiquitous BLACKBERRY wireless PDA, recently suffered a setback in a patent infringement case launched by NTP Inc., a US-based holding company.   As owner of various patents relating to wireless technology, RIM was successfully sued by NTP for infringing its patents relating to radio frequency wireless communications in e-mail systems.   Fortunately for RIM, an injunction order has been stayed pending the appeal of the decision and a re-examination of NTP's patents by the US Patent Office.   Although analysts suggest that in the long term RIM will remain healthy, in the short term the company may be forced to license technology from NTP and pay a significant penalty (estimates cite a figure of $52 million, which represents half   of RIM's revenue last year). For an update on the RIM/NTP litigation, visit: http://zdnet.com.com/2100-1103_2-5060296.html. These high profile cases illustrate how important it is to protect your company's intellectual property assets from the outset.   If you are a start-up company with leading technology, contact Deeth Williams Wall LLP for assistance in developing an IP protection plan. Summary by:   Lenni Carreiro and James Kosa