Intellectual Property And Patents In The Smartphone Industry

There is just a one person who sells products or services and there are no incentives which help to break this monopoly. There are many monopoly industries in the market. In monopoly, they use patents because they don’t like if someone’s copy their inventions.

Protection of intellectual property are investments based on acquired knowledge, thought and effort by one or multiple individuals on behalf of themselves, the business they work for when the property is created, and a financial investment. Each of these – acquired knowledge, thought, physical effort, financial investment – have a value that can be attached as it relates the usefulness or importance of the resulting product. That value will have a level of importance to the individual(s) creating the product and if applicable, the investor providing the funds in support of the creation.

Patent: A government authority or license conferring a right or title for a set period, especially the sole right to exclude others from making, using, or selling an invention.

Proponents of patent reform largely focus on the cost of patent infringement litigation to the U.S. economy and companies. While some argue that the type of patents issued should be limited in order to uphold the intent of Article I, Section 8, others claim that standards for issuing patents should be strengthened in order to reduce the number of costly patent infringement lawsuits. The cost of litigation and standards for issuing a patent is the focus of the proceeding text and justification for patent reform in the United States.

A patent gives the authority to deny people the right to use, make or sell the invention. You can only patent an invention if it is completely new and not an adaption of an invention already present in the market, and if it can be made or used.

The Leahy-Smith America Invents Act, passed on September 16, 2011, was the most significant reform to the patent system in the United States since the Patent Act of 1952, which redefined the patentability of patent to include being nonobvious in addition to new and useful (1). The demanding need for patent reform had been discussed and debated frequently both within the literature focusing on patent trolls and consistently in Congress with the introduction of many patent reform acts that were never enacted: the Patent Reform Act of 2006 at the 109th Congress, the Patent Reform Act of 2007 at the 110th Congress, and the Patent Reform Act of 2009 at the 111th Congress (2-5). The enactment of the America Invents Act in 2011 after the failure of previous reform attempts signifies its importance in addressing the pressing issues of the United States patent system. The America Invents Acts specifically aimed to confront problems that were impeding innovation: the ever-increasing expense of the patent process, the exploitation of the patent system by patent trolls, and the unnecessary complexity and inefficiency of the patent process as a whole.

A patent is a twenty year exclusive monopoly on the right to make, use and sell a qualifying invention. This legal monopoly is considered a reward for the time and effort expended in creating the invention. In return, the invention must be described in detail to the Patent Office, which publishes the information, thus increasing the amount of technological knowledge available to the public. To obtain a U.S. patent, an inventor must apply to the Patent Office and demonstrate that the invention is new (as compared to prior technology), useful, and "nonobvious." An invention is nonobvious if it is more than a trivial, obvious next step in the advance of the technology. Software patents can be extremely powerful economic tools. They can protect features of a program that cannot be protected under copyright or trade secret law. For example, patents can be obtained for ideas, systems, methods, algorithms, and functions embodied in a software product: editing functions, user-interface features, compiling techniques, operating system techniques, program algorithms, menu arrangements, display presentations or arrangements, and program language translation methods. Since patent rights are exclusive, anyone making, using or selling the

A patent is defined as “a document issued by a government office which describes an invention and creates a legal situation in which the patented invention can normally only be exploited - manufactured, used, sold, imported - with the authorization of the owner of the patent” (World Intellectual Property Organization). Thus, a patent is a form of intellectual property. Patent infringement occurs when the defendant has violated this intellectual property, by making, using, selling, offering to sell, or importing an infringing invention or its equivalent. “For a court to find infringement, the plaintiff must show the presence of every element or its substantial equivalent in the accused device” (Wolverine World Wide, Inc. v. Nike, Inc., 38 F.3d 1192, 1199, Fed. Circ. 1994).

The best-selling Apple iPhone by any measure of financial and market performance is an unparalleled success. The Apple iPhone is credited with creating one of the most robust, extensive supply chain ecosystems globally today, fueling nearly $7B to $10B in ancillary products and services. Paradoxically even the success of the iPhone has done little to increase U.S. exports. Startlingly the Apple iPhone's success, according to a recent study, has actually fueled an even greater deficit in the U.S., making a significant contribution to the $1.9B deficit with China (Xing, Detert, 2011). This counterintuitive finding from the analysis of the researchers suggest that transaction velocity and supply chain coordination across global networks increase export surpluses not of the nation who company built the product, but the one that builds it (Xing, Detert, 2011).

Patent infringement occurs when there is a violation of the patentee’s exclusive right. In their work, W. Kintner & L. Lahr, (1975) argue about the three types of infringement encompassed in the US Patent Act, which are: direct, active inducement and contributory.

In basic terms, a market structure regarded monopolistic is deemed to have some elements or components of both competition and monopoly. In such a market structure, there exists a large number of entities offering for sale goods that in addition to being substitutes also happen to be differentiated significantly. In this text, I highlight the mobile phone market monopolistic competition. Further, I discuss how such a market would be impacted by both an increase in the price of an input regarded important and a decrease in the demand of mobile phones.

A patent is an exclusive right granted for an invention, product or process that provides a new way of doing something, or that offers a new technical solution to a problem. An invention in general must fulfill certain criteria in order to be protected by a patent. For example, the Patents Act, 1970 in S. 2(1) (j) defines invention as a new product or process involving an inventive step and capable of industrial application. In other words, an invention in order to be patentable must show an element of novelty, must show “an inventive step”, and must be of practical use. Particularly, the Patents Act, 1970 defines “inventive step” as a feature of an invention that involves technical advance as compared to the existing knowledge or having economic significance or both and that makes the invention not obvious to a person skilled in the art. In other words, patent rights are not available for new advances that are merely obvious extensions or modifications of prior designs. Besides, the requirement of difference over prior art, there is a requirement to establish the extent of common general knowledge that exists while

Smartphone market is fast-moving and very high competitive due to intense competition between two big smartphone producers, Apple and Samsung. At the beginning, Apple dominated this market solely by introducing a new innovative type of smartphone by Steve Jobs that has revolutionized people lifestyle and mobile industry. A few years after launching iPhone, a new fast following competitor, Samsung came into this market, and their sales have outperformed Apple from the year 2011 (According to Chart A1 in Appendix). In term of developing their product, Samsung has created its products by following Apple’s technology since the beginning of producing its smartphone, therefore there are many patent lawsuits between them. Since Steve Job passed away, Apple has continued to develop its core competence, which is an innovation of new type of smartphone that could help them to take back their market share from its rival, Samsung. Nonetheless, the competition between Apple and Samsung will still continue intensively in the future.

Patent : A patent is a government license that gives the holder exclusive rights to a process, design or new invention for a designated period of time. Applications for patents are usually handled by a government agency. You can use a patent to protect your invention. It gives you the right to take legal action against anyone who makes, uses, sells or imports it without your permission.

Think different. It was more than an advertising slogan. It was a manifesto, and with it, former Apple CEO Steve Jobs upended the computer industry, the music industry and the world of mobile phones. The digital visionary 's next plan was to bring radical change to schools and textbook publishers, but he died of cancer before he could do it