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`12/25/13, 1:07 PM
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`backed by Google, takes Fight to
`Patent Trolls
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`The Gloves are Off : Unified
`Patents Inc. Unveils its “NPE
`Deterrent” Strategy
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`Unified Patents Challenges
`Clouding IP Patent seeks To Push
`Patent Trolls out of Cloud Storage
`
`Unified Patents Challenges
`America’s Most Litigious Patent
`Assertion Entity
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`THE GLOVES ARE OFF : UNIFIED PATENTS INC. UNVEILS ITS “NPE
`DETERRENT” STRATEGY
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`In the world of fighting patent trolls, there is a new player named Unified Patents Inc. that aims to level the playing
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`field for companies such as Google, NetApp and others. Unified Patents is today announcing its aggressive, multi-
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`faceted, collaborative deterrence strategy to help large and small companies protect their most important products
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`and services from Non-Practicing-Entity (NPE) business models (which critics often call ‘patent trolls’).
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`An NPE is often defined as a company or individual that owns patents but does not use those patents to produce
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`goods or services. Rather, an NPE generates revenue by asserting or litigating their patents against operating
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`companies.
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`Unified Patents attacks the NPE business model one technology at a time. Its solution groups startups, small and
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`medium-sized businesses, and large companies in protected technologies, called Micro-Pools, and then fiercely
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`protects each Micro-Pool from NPE encroachment. Because companies only participate in (and pay for) those Micro-
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`Pools they choose, Unified Patents tightly aligns its deterrent solution with its participating companies. Founding
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`members in Unified Patents include technology leaders Google and NetApp.
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`Technology companies have tried for years to find effective solutions to combat NPEs. And for good reason,
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`Professors Bessen and Meurer from Boston University School of Law put the cost of NPE activity at $29 billion in legal
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`fees and settlement costs in 2011 alone (a number that does not include the indirect costs such as management
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`distraction and lost business opportunities). Despite existing efforts, however, NPE litigation has continued to rise.
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`NPE litigation data provided by Patent Freedom shows that patent lawsuits involving NPEs have increased
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`dramatically over the last five yearsfrom 521 cases in 2007 to a high of 2,923 cases in 2012 (the number of occasions
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`when a company found itself in litigation with an NPE has also increased from 2135 in 2007 to 3859 in 2012).
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`For those technologies protected by a Micro-Pool, Unified Patents wants to reverse this trend by using deterrence (i.e.,
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`making a protected technology less accessible to NPE activity than an unprotected technology). Unified Patents
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`competes head-to-head against NPEs trying to purchase patents in a protected technology. But “defensive patent
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`purchasing is only part of the strategy,” says Unified Patents’ CEO Kevin Jakel, “We provide a comprehensive solution
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`of offense and defense to protect our member’s most important technology investments.” By combining patent
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`acquisitions with other efforts, such as reexamination proceedings before the USPTO, Unified Patents takes the fight
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`to the NPEs to deter them from attacking a protected technology.
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`While large companies have long experimented with various approaches to resist NPEs and dubious patent
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`assertions, small companies have typically lacked similar resources, making them easy targets for NPEs. Bessen and
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`Meurer’s study found that 82% of companies sued by NPEs made under $100M in revenue and 50% made only $10.8
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`million or less. As noted by Colleen Chien, a professor at Santa Clara University School of Law, startups and small
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`companies are significantly impacted by NPE activity but have limited options when faced with the high costs of NPE
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`litigation.
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`Recognizing the need to include small companies in its solution, Unified Patents incentivizes startup and small
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`company participation and then helps groups of small companies protect themselves from NPEs. Small company
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`participation acts as an early warning system, a unique contribution that allows Unified Patents to better protect a
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`Micro-Pool as a whole. By partnering companies of all sizes, Micro-Pools can help make defensive collaboration
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`http://justdemo.in/unified/2013/09/23/the-gloves-are-off-unified-patents-inc-unveils-its-npe-deterrent-strategy/
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`Page 1 of 2
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`The Gloves are Off : Unified Patents Inc. Unveils its “NPE Deterrent” Strategy | Unified PatentsUnified Patents
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`12/25/13, 1:07 PM
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`much more effective by reducing the number of easy targets vulnerable to NPEs.
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`Unified Patents’ first two Micro-Pools cover Mobile Payments and Cloud Storage but the company has dozens of
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`technologies identified for potential Micro-Pool protection. NPEactivity has become readily apparent in these Micro-
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`Pools where many companies are already under attack and spending millions of dollars annually in legal costs and
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`settlements.
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`The company is headed up by its CEO, Kevin Jakel and COO, Brian Hinman, who between them have dozens of years of
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`experience defending against NPE activity for major technology companies. Prior to Unified Patents, Kevin served as
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`Intuit’s Head of Intellectual Property Litigation. In this role, Kevin teamed with other companies such as Google,
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`Verizon, and others on joint defense, legislative reform, and judicial efforts to combat NPE activity. Brian was most
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`recently Vice President of Intellectual Property and Licensing at InterDigital Communications, Inc., and has served in
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`similar roles at Verizon and IBM. Brian also served as the founding CEO of an alternative defensive patent entity, Allied
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`Security Trust (AST).
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`http://justdemo.in/unified/2013/09/23/the-gloves-are-off-unified-patents-inc-unveils-its-npe-deterrent-strategy/
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