German patent licensing firm IPCom has accused Apple of infringing upon its patented technology that enables iPhone's emergency phone-dialing feature. The firm claims that it is the only rightful owner of the IP used in the chip that makes emergency calls such as 911 possible and is demanding $2.1 billion in damages from Apple. However, this piece of technology is used by nearly every mobile phone and almost always required by law. Interestingly enough, IPCom has previously filed the same lawsuit against mobile companies such as Nokia, HTC and Ericsson for the same reason, but unfortunately none of these firms has been successful in getting the European Patent Office to declare the patent invalid for being a standard requirement. As the victim this time around, Apple has agreed to attend the hearing taking place on the 11th of February at the Mannheim Regional Court in Germany.
As if the patent wars among mobile giants aren't chaotic enough already, patent assertion firms like IPCom are looking to join in on the fun and most importantly profit. As discussed in class, patent lawsuits can be a highly profitable practice for some as huge sums of money are involved. Companies like IPCom (what critics refer to as patent trolls) do not actually create patents -- they simply buy patents and make a profit by claiming royalties on them and suing other firms. Since IPCom was founded in 2007, it has built up a portfolio of almost 1,200 patents in mobile communications. Luckily, companies like Google and Apple are beginning to fight back as they push forward a legislation that would put a stop to patent trolls through the U.S. Senate. 2014 will sure be a big year for patent law reform.
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