Patents focused on accident prevention/avoidance systems and vehicle condition monitoring systems
High likelihood of infringement and easy to prove… High potential for disputes with automakers within the next 2-3 years

In the field of autonomous vehicle patents, the movements of NPEs (patent management firms), known as so-called "patent trolls," are becoming alarming.

As NPEs have been acquiring a large number of patents related to autonomous vehicles in recent years, and lawsuits filed against major domestic companies have also increased, there are growing calls to closely monitor the movements of these NPEs and prepare countermeasures.

Patent litigation related to autonomous vehicles began to increase starting with patents in the early 2000s, when ICT technology was integrated into automobiles. The proportion of patents litigated by NPEs among all patents subject to litigation is gradually increasing. Analysis suggests that a large number of patents filed during this period are securing rights to core technologies of autonomous vehicles.

▲ NPEs have focused on acquiring patents related to vehicle condition monitoring systems and accident prevention/avoidance systems, as these two technologies have a high probability of infringement and are easy to prove. (The photo shows a demonstration of autonomous vehicle-related technology presented by an autonomous vehicle research institute at an exhibition.)

In particular, the period between 2002 and 2007 was a time of research boom for autonomous vehicles, and in 2002, 8 out of 15 patents subject to litigation were NPE litigation patents. In addition, 4 out of 13 cases in 2006 and 4 out of 11 cases in 2007 were NPE patent lawsuits. Although statistics for 2015 and 2016 are not yet available as they are in the undisclosed patent area, experts expect that NPE patent lawsuits have increased significantly.

The continuously increasing number of lawsuits filed by NPEs is having a direct impact on related domestic companies. Lawsuits targeting Korean companies, such as Hyundai and Kia Motors, are on the rise. While domestic automakers were rarely exposed to litigation until 2010, the number of cases filed against them has been increasing since 2011. According to the Korea Intellectual Property Strategy Institute, while 11 out of 73 total lawsuits in 2011 targeted Korean companies, 17 out of 121 total lawsuits in 2013 were NPE lawsuits against Korean companies.

So, in which areas of autonomous vehicles are NPEs focusing? It appears they are highly interested in accident prevention/avoidance systems and vehicle condition monitoring systems. The specific technologies with the most litigation patents were, in order: automotive SoC technology, vehicle condition monitoring systems, and accident prevention/avoidance systems. Among these, vehicle condition monitoring systems and accident prevention/avoidance systems were patents favored by NPEs because these two technologies have a high probability of infringement and are easy to prove.

The field with a high volume of NPE patent transactions is automotive wireless communication technology.

The fact that the filing dates of patents subject to litigation coincide with the timing of the increase in NPE patents clearly illustrates how they are utilizing the patents they have acquired. The high rate at which NPEs use acquired patents in litigation explains why the timing of the increase in litigation patents aligns with the timing of the increase in patents acquired by NPEs. The technology sectors that NPEs have recently been focusing on acquiring are automotive wireless communication systems and autonomous driving systems, which are expected to lead to disputes with automakers within the next two to three years.


▲ Status of NPE lawsuits against Korean companies by year

The number of assigned patents (litigation patents) relative to patents held by NPEs was 10 out of 16 in 2002 and reached 14 out of 18 in 2006. This figure decreased until 2012, then increased to 7 out of 17 in 2013, and is expected to have continued to rise during the undisclosed period of 2015 and 2016. As such, NPEs filing lawsuits against automakers primarily utilize acquired patents. For example, the NPE Beacon Navigation had 8 litigation patents and 8 acquired patents out of a total of 64 lawsuits (2004–2014), resulting in a 100% ratio of acquired patents.

We must analyze patent acquisitions and rights transfers by NPEs, etc.

The average number of patent transactions for autonomous vehicles is 66, with above-average patent trading occurring in seven technology fields, including sensing systems, accident prevention/avoidance systems, and automotive SoCs. Among the traded patents, the proportion of patents where the final rights holder is an NPE was highest in the field of automotive wireless communication technology at 22.4%. Next, sensing systems accounted for 11.6%, accident prevention/avoidance systems for 13.3%, and automotive SoCs for 4.5%.

Major NPEs initiated lawsuits against Korean companies approximately 21 months after the patent assignment date. In response, Lee In-hee, a senior researcher at the Korea Institute of Intellectual Property Strategy (KISTA), stated, "Recently, major domestic companies have been frequently sued by NPEs." She added, "Therefore, we must examine the litigation areas of NPEs and analyze the characteristics of each sector to formulate our litigation response strategies. We should analyze patent acquisitions and rights transfers by NPEs to use as a reference for setting the future direction for domestic companies."