The news that the Australian Commonwealth Scientific and Industrial Research Organization (CSIRO) is suing three of the Big 4 U.S. wireless carriers for patent infringement bring a new layer of complexity to an industry already embroiled in multiple struggles over mobile technology patents.
Australia’s leading public science agency, CSIRO was was awarded U.S. patent No. 5,487,069 (known as the "'069 patent") in September, 1996. It proved to be the basis for many of the 802.11 standards for wireless LANs, and Wi-Fi, established over the last decade by the Institute of Electrical and Electronics Engineers (IEEE). The 802.11 family of standards led to an explosion of in-office wireless networks and of public hotspots, rapidly creating a multi-billion dollar industry in which hundreds of millions of devices have been sold in the last several years. CSIRO used that patent to bring the wireless industry to its knees, winning a $185 million out-of-court settlement last year with a group of major technology companies that included HP, Dell, Intel, Microsoft, Toshiba, and 3Com.
Now the agency has broadened its targets to carriers, suing AT&T, Verizon Wireless, and T-Mobile for infringing its Wi-Fi patents. Verizon issued a statement saying that the 069 patent is not "duly and legally issued for inventions," and that the company has not infringed "any valid enforceable claim." CSIRO, which has the resources (thanks to the 2009 settlement) and the stamina for a long legal battle, intends to force the carriers into paying for the use of the technology at the heart of their Wi-Fi offerings.
That battle looks like a pillow fight, though, compared to the multi-company litigation underway in the smartphone sector. You need a scoreboard to keep up with who’s suing whom, but at issue are the patents surrounding several technologies at the center of the smartphone explosion, including Apple’s patented touchscreen technology.
Briefly, Nokia sued Apple last October for violating 10 patents it says are used in the iPhone, and Apple promptly counter-sued. Despite a federal judge’s admonition to place the litigation on hold until the the U.S. International Trade Commission rules on the matter, Nokia earlier this month upped the ante, adding the iPad and five additional patents to its claims.
"These patented innovations are important to Nokia's success as they allow improved product performance and design," Nokia said in a prepared statement.
Steve Jobs, true to form, has been more combative in his public statements on the fight: "We can sit by and watch competitors steal our patented inventions or we can do something about it. We've decided to do something about it.”
Apple, meanwhile, is involved in a similarly nasty lawsuit with Taiwanese device-maker HTC, which has produced a series of iPad-rivaling smartphones including the hot Droid Incredible. Apple sued HTC in March, claiming infringement of 20 of its patents related to the iPhone user interface. HTC, naturally, countersued, alleging that the Cupertino, Cal.-based iPhone-maker has infringed of five of its mobile-device patents.
"We are taking this action against Apple to protect our intellectual property, our industry partners, and most importantly our customers that use HTC phones," Jason Mackenzie, the company's VP for North America, said earlier this month, in a statement.
