Any international investor, or potential innovator, might gaze across at ice wall surface of patent knowledge surrounding united states tech companies and conclude it is not breached. it seems that if any group creates an easy method all over present engineering techniques, they're going to only be torn to pieces by hostile us attorneys.
But ice walls melt and appropriate methods can change on technology monopolists. that happened to thomas edison with movie patents, at&t with telephony, and may also be occurring today searching for interactive vocals reaction (ivr).
Ivr is most likely the most annoying collection of technologies ever before developed: they control that which you notice while you over and over bang down on the 0 attempting to get a human customer support representative.
For the previous couple of years, the ivr market was ruled by nuance communications of massachusetts. nuances share price has actually increased by more than 118 percent in the past 12 months, because has actually finally slipped into profit.
And why shouldnt it is area of the monopoly-us-tech-stock-market? after all, as its investor relations website says, nuance has actually about 3,000 patents. a large number of those had been obtained from, or accredited from, ibm. others had been obtained for the duration of a 2005-18 acquisition binge completed by paul ricci, nuances former ceo.
Nuance obtained not merely businesses, but something of a reputation as an aggressive patent litigant. exactly how aggressively the business uses its patent profile to pursue not just areas, but possible purchases is the subject of two countersuits by ivr organizations, mmodal and omilia.
They assert that nuance partcipates in sham patent litigation which, if the courts agree with them, would means that the appropriate dominance conferred by patents is withdrawn, and nuance could be charged with antitrust violations enabling its challengers to claim up to treble problems.
None associated with the current ivr litigants agreed to continue the record. but a reading associated with the filings in legal actions and discussions with appropriate experts reveal truth be told there appears to be four hurdles for succeeding at sham patent litigation proceedings.
First, there's having already been some negotiations over a deal with the alleged patent violator, utilizing the monopolist counterparty threatening expensive violation fits. 2nd, the protecting company should have a great instance in the face from it that the patents are way too obscure or else inapplicable.
Third, the less monied technology competitor must get some good outside money that provides it confidence to outlast the patent-heavy monopolist. (mmodal has become backed by 3m and omilia by grafton capital of london.) finally, it helps to own accurate documentation of other attempts by the so-called illegal monopolist to utilize patent holdings as a negotiating tool.
A lot of people who are not both attorneys and designers tend to be intimidated by patents. but some patents into the sectors i have investigated are vaguely written, and address innovations being therefore like prior art, that they cannot really be enforceable.
Nuance values its patent profile rather highly, although i am not certain why. for example, without technical talent that goes with the (ibm) patents, those have limited price to nuance, says walter tetschner, quite a long time specialist for the ivr business.
Indeed nuance has lost two patent suits, one in 2013 to a character-recognition organization labeled as abbyy and another in 2011 to vlingo, another ivr organization.
It might be argued your high priced businesses obtained in nuances merger binge shield the companys administration from takeovers, since nuances $4.09 guide worth (against a stock cost of $31) turns into a bad -$4.32 tangible book value when goodwill is subtracted.
I had written to and labeled as nuance asking them for instances where company had claimed one last view on a patent suit, and got no reply.
A buyer when you look at the ivr business philosophically states: nuance will be a rational actor. when they had adequate next generation items to keep their particular $500m of recurrent income, they might. instead they just defend the present products in any manner they can.
How much regarding the us technology stock bubble signifies real development, and exactly how much signifies the socially useless costs of a costly appropriate system?