Patent privateer
- IP Privateering: A Strategic Overview**
IP privateering refers to a corporate strategy where companies employ intermediaries, such as patent assertion entities (PAEs) or non-practicing entities (NPEs), to enforce their patents. This method allows the originating company to avoid direct involvement, thereby evading potential retaliation and negative publicity.
- Legal Implications:**
Sponsors of privateering typically face limited legal liability unless the intermediary is found liable. However, risks include charges related to tortious interference, patent misuse, or antitrust violations. Public exposure can undermine the sponsor's objectives by revealing their involvement, which is often concealed to maintain plausible deniability.
- Case Example - Apple vs. Nokia:**
A notable instance is Apple's lawsuit against Nokia, alleging that Nokia used PAEs to circumvent FRAND (Fair, Reasonable, and Non-Discriminatory) obligations related to standard-essential patents. The case concluded with a $2 billion settlement, highlighting the tactical use of privateering in disputes over industry standards.
- Historical Context:**
This practice draws parallels with 19th-century maritime privateering, where governments sponsored privateers to attack enemy ships, avoiding direct financial costs. Similarities include the use of intermediaries for cost-effective conflict engagement and the reliance on stealth to avoid repercussions.
In summary, IP privateering is a controversial yet effective strategy that leverages intermediaries to enforce intellectual property rights while minimizing direct exposure, drawing both legal scrutiny and historical comparisons to state-sponsored piracy.