Patent Trolls Entangled in Connected Cars

US IV Files Lawsuit Against Toyota, Honda, and Others for Telecom Component Patent Infringement
Japanese Media Reports "Settlement Money Is the Goal"
Concerns Over Spread to Other Companies

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The U.S. patent troll Intellectual Ventures (IV) has filed a lawsuit against Toyota and Honda in a U.S. court on charges of patent infringement. It is unusual for Japanese automakers to be sued over patents related to communication components. With the recent expansion of autonomous vehicles utilizing information technology (IT) such as 5th generation mobile communications (5G) and the Internet of Things (IoT), it is expected that other companies may also face litigation risks in the future.

According to the Nihon Keizai Shimbun on the 9th, the U.S. patent company IV filed a lawsuit on the 19th of last month against three companies?Japan's Toyota and Honda, and the U.S.'s General Motors (GM)?for patent infringement in the U.S. Federal District Court in Texas. It claims that Toyota's Prius and Lexus, as well as Honda's Accord and Odyssey, among their main models, infringe on its patents.

IV is a patent management company that does not manufacture products but generates revenue solely from patent royalties. In addition to conducting its own research and development, it purchases patents through affiliated funds and earns income from licensing fees or patent litigation settlements. Founded in 2000 by a former Microsoft (MS) executive, the company is known to hold more than 70,000 IT-related patents.

IV has sued the three companies for more than 10 patent infringements related to vehicle communications. These include communication methods used when wireless internet is accessed inside the vehicle and technologies that facilitate vehicle devices connecting easily to external communication networks. IV claims that at least four patents are infringed by Toyota and four by Honda.

Regarding this lawsuit, Toyota and Honda stated, "It is true that there is ongoing litigation, but we cannot comment on the details."

The Nihon Keizai Shimbun analyzed, "IV appears to be aiming for settlement payments, and at this point, the possibility of a sales ban request seems low."

Industry insiders view this lawsuit as a concern that it may spread to other companies in line with the growth of the connected car market. According to Fuji Keizai, connected cars are expected to reach a total of 94.2 million units by 2035, accounting for 80% of the entire new car market.

The Nihon Keizai Shimbun forecasted, "With the spread of 5G and the expansion of IoT, litigation is expected to occur across industries, not only in connected cars but also in smart power meters, factory robots, and smart factories," adding, "Especially in communications, the number and types of patents are large, and technological innovation is rapid, making patent infringement more likely."

This content was produced with the assistance of AI translation services.