Apple and Google are usually archrivals, but they agree wholeheartedly that patent lawsuits can be a waste of time and money. The two Silicon Valley leaders are joining forces in asking the Supreme Court to consider the impact of frivolous lawsuits as the chief justices prepare to deliberate two cases involving fee awards in patent litigation.
If the high court makes it easier for patent lawsuit winners to collect attorneys’ fees from the losers, companies are more likely to exercise caution in filing patent lawsuits. Currently, a number of non-practicing entities hold patents primarily for the purpose of suing operating companies, and the lawyers representing these NPEs may work on contingency. But if the litigants know a loss in court will leave them to foot the bill for the lawyers representing a giant like Apple or Google, the dynamics are likely to change significantly.
According to Bloomberg, Apple and Google have each been sued more than 190 times by companies that get most of their revenue from patent lawsuits. Apple says that each lawsuit is a trigger for more claims, prompting other companies to demand royalties.
Almost 20% of all patent lawsuits are filed by NPEs, according to the Government Accountability Office. Apple, Google and other technology companies have told the Supreme Court that NPEs should have to pay the winner’s legal fees if they lose in court. They say that since these companies do not make products, it is hard to counter-sue them with competing patent lawsuits, a strategy that the big players often use against one another.
Google and Apple of course often find themselves opposing one another in court. Apple is part of the Rockstar Consortium that is currently suing makers of several Android devices over patents formerly held by Nortel Networks that are now held by Rockstar. Recently Huawei became the first of these Android OEMs to settle with Rockstar.
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