Lexmark vs Impression Products

Lexmark vs Impression Products: A case with bigger implications than printing

Overview:

Originally the case began about laser ink cartridges. However, the implications and precedent set by the court, in favor of Lexmark, drew in corporate giants from biotechnology and high tech.

Background:

Lexmark is a large manufacturer of printers and ink. Most of their revenue stems from selling toner to consumers for their specific printers. The company has both reusable cartridges and one-time use cartridges. Consumers are able to return their cartridges back to Lexmark for a refilled or recycled cartridge through their authorized distribution channel. 

However, Impression Products decided to get into their cartridges and refill them for consumers. Essentially, stealing from Lexmark's business stream of redistributing cartridges for proprietary printers. 

The Verdict:

The Federal Appeals court ruled that Impression Products infringed on Lexmark's patent on ink because it did not have authorization to bypass Lexmark and provide ink for consumers. 

Why is this important?

Corporations sighed relief and see more money on the horizon with this verdict. Essentially, they have control of their products and how consumers are able to utilize their products after the sale. This can be similar to how Apple does not allow "Jail-breaking" of devices, which voids the warranty. 

Sources:

http://www.reuters.com/article/us-lexmark-intl-impression-products-idUSKCN0VL1MZ

http://patentlyo.com/patent/2015/04/lexmark-impression-facts.html

Apple vs Samsung

Here we go again: Apple vs Samsung.

US Federal Appeals Court overturns Apple's victory

This time it is Samsung who has won the appeal against Apple.  Originally, the courts ordered a jury-issued verdict that Samsung owed Apple $119.6 million.

For what?

The original suit included 2 Samsung patents and 3 Apple patents. The case dates back to May 2014 when Apple won the verdict. Apple's patent includes features such as auto-correct, slide-to-unlock, and quick-links. Meanwhile, Samsung's two patents led them to a small victory of $158,000.

For team Apple this news comes as a blow. Rutgers Professor Michael Carrier said Apple "rolled the dice" on these patents. The courts agreed with Samsung. These patents were prior inventions and not worth of being labeled patents.

For team Samsung, this case demonstrates how "Apple is not invincible and that alternative operating systems are here to stay". Specifically, referring to how Android, which Samsung utilizes,  is not copying Apple.

In the grand scheme of things, it seems that neither company loses or wins financially in this scenario. Rather, Apple decided to pursue Samsung and ended up getting two patents tossed out and the third neglected. Meanwhile, Samsung rebuffed Apple's claim and the notion that it copied Apple's technology.

Unfortunately, this is not the first or the last of the Apple vs Samsung patent wars. Rather, it is only one battle that Samsung emerged victorious. Previously, Apple won a case for $547.2 million, which will head to the US Supreme Court. It is up to Apple if it will further appeal this case, or settle with a no financial loss/benefit to either corporation on this issue.

Sources:
http://phys.org/news/2016-02-samsung-appeal-apple-patent-case.html
http://www.reuters.com/article/apple-samsung-elec-appeal-idUSKCN0VZ27R

Detailed VirnetX vs Apple

Detailed Analysis of Virnetx vs Apple

Virnetx wins $626 million in damages against Apple

The case between Virnetx and Apple has come to a close in a classic Texas showdown, precisely East Texas. Specifically, the case involved 4 patents that VirnetX sued Apple for infringement. A description and link to each patent is located below. Keep in mind, they are very technical.  

1. Patent US 7921211 – Agile network protocol for secure communications using secure domain names

1. Patent US 7418504 – Agile network protocol for secure communications using secure domain names 
2. Patent US 7490151 – Establishment of a secure communication link based on a domain name service (DNS) request 
3. Patent US 6502135 – Agile network protocol for secure communications with assured system availability 

Where did the company get these patents?

Earlier,  VirnetX bought these patents from Science Applications International Corporation. Likely, they paid a significantly smaller amount for the patents than what it won in the Apple lawsuit. 

What is the value breakdown of the $626 million?

VPN on Demand feature: ~ 335 million

Facetime, iMessage infrigements ~ 291 million

What's next?

Perhaps Apple will try appeal this verdict or reduce the damages. Although it can afford to pay this without rattling investors or its long-term strategy, it would prefer not to pay anything. 

VirnetX will likely continue attacking other clients. It previously attacked Microsoft for a Skype application patent. Foreseeably, Google Voice and other messaging/communication companies might want to be careful against VirnetX exercising patents in this space. 

Patent-troll?

This is the crux of this debate: VirnetX does not apply these patents, but rather sues companies that utilize applications that infringe on VirnetX's technology. In some essence, it acts as a patent-troll because it attacks major corporations and tries to take some of their margins. While these companies do appeal and fight back, a patent has power. That power turns into value, which VirnetX extracts. 

This leads to the the flip-side, whether these companies are truly making valuable. One can argue that the inventors and people who find value in these ideas (whether they buy or create them) clearly have a visionary goal. However, it is hard to classify VirnetX in this category, because it purposefully buys these patents for the goal of suing companies. 

Source: Plaintiff Settlement from the US Court. 

Link to Plantiff Settlement from US Court

High Level: VirnetX vs Apple

Overall Summary: Virnetx vs Apple

The case between Virnetx and Apple has come to a close in a classic Texas showdown, precisely East Texas.

Essentially, Apple's heavily utilized services: FaceTime, iMessage, and Apple VPN were under scrutiny by VirnetX. The patent-troll claims Apple infringed on their patents. Specifically, the case involved 4 patents that VirnetX sued Apple for infringement on networking applications.
Who is VirnetX?

VirnetX is "an Internet security software and technology company with patented technology for 4G LTE security” (CNN).  Apple, with its speedy services, became a victim of this "patent-troll". Specifically, VirnetX acquired these 4 patents from a science company for a nominal price and utilized them to attack Apple. 

The damages of $626 million against Apple come as a huge jackpot to Virnetx. The company only has 14 employees and relies on major wins like this to continue profiteering. On the stock market side, its stock is currently floating around $7 dollars for a market capitalization of $300 million. 
Meanwhile, Apple has thousands of employees globally, produces new products annually, and has a stock price around $93, with a market capitalization above $500 billion. 

VirnetX reiterated their victory, “We are thankful for the jurors’ hard work and attention in this case, and for reaching a just verdict,” said their lawyer Jason Cassidy. “The jury saw what we have been saying all along: Apple has been infringing VirnetX’s patented technology for years.” (Are Technica).

After a failed appeal by Apple, a few years in court, the company is going to be up $626 million!

Link to Plantiff Settlement from US Court

IEOR Revised List

Revised Top 10 Inventions

Revised the list to include more inventions that were broader, as opposed to specific!
Note: Only two of the things changed!

1. Electricity: without this, most other things would not be possible, such as light-bulbs, kitchen appliances, dishwashers, and A/C. 
2. Penicillin: first antibiotic that helped pave the way for fighting plague, TB, E.coli
3. Vaccines: anti-viral for things such as Hepatitis, influenza, and polio
4. Clean Tap Water: Although not everyone has this yet, it allows billions to consume water and live healthier. 
5. Computer: Without this, would not be possible to write this blog!
6. Internet: Allowed computers and mobile phones to communicate and share information globally within seconds.
7. Mobile Phones: providing internet connectivity to billions of people, including those of low income countries who did not previously have any form of communication (ex. India)
8. Combustion Engine - This helped pave the way for the manufacturing, automobile, and airplane inventions. As a result, it greatly improved efficiency and transportation. 
9. Ships: Earliest form of trade between ancient civilizations, founding of New World, and mass transport
10. Paper - this is very important because it helped spread knowledge, ideas, and religion! Moreover, it preserved history, so we have a better idea of the past. 

Elaboration on the Light-bulb

Elaboration on the Light-Bulb 

Although electricity existed before the  late 19th century, it was Thomas Edison who invented the commercial light-bulb. It is important to note how the key here was the ability to put light-bulbs in homes and buildings! This significantly changed human patterns of behavior. For example, the work-day was no longer limited based on the sun and season. Secondly, people could read, study, and utilize their homes to the full extent. 

Imagine cooking in the dark? 

Imagine using the bathroom in the dark? 

Imagine sleeping at 9PM?

The list goes on..

This invention changed the way humans perceive their day. Clearly, we have seen improvements in the usage of electricity over the past 100 years. Specifically, with the light-bulb we have seen many variations - LED, white, colored, etc. Moreover, the technology likely shaped the development of TVs!

I picked this invention because it is hard to imagine a world without light-bulbs. For example, when there is a black-out, it seems that the world stops working and our life is at a standstill.