Patents as Potent Weapons
Patents and Researchers
In a satirical novel by Mark Twain, a "Yankee" from Connecticut is magically transported to the ancient court of King Arthur. After a short time, he becomes Prime Minister. His first two official acts are to introduce a patent law and to establish a patent office, becausehe reasonswithout patents, technical development is essentially aimless, much like the random movements of a crab. Patents, he says, protect against imitation, and they thereby represent an incentive for others to create their own superior products. In short, patents get the engine of progress moving.
If the Yankee were trans-ported to today's world, he would encounter a patent scene that has changed considerably. Although his ideas are still valid, they have receded into the background. Patents have evolved into a potent weapon in global competition. Very innovative companies, in particular, convert their ideas into strong patents, which they put to profitable use. Indeed, patents are an integral part, a prerequisite, for making Siemens' "Pictures of the Future" a reality. This section therefore features examples and interviews addressing the trends, successes and problems in the world of patents.
Here Comes the Electronic Ticket
No change for a bus ticket? No problem. With a SmartCard, an electronic ticket that can be detected in pockets or purses, all you do is get on and enjoy the ride.
Bruno Wenger has submitted 21 patent applications. Nor is his creativity limited to his work. Wenger, who is a cooking aficionado, also designed his home
A new electronic ticket could well replace the paper ticket invented more than 160 years ago. Those in possession of a "long range card" can use all forms of public transportation without having to buy and stamp a ticket every time. During the trip, the card is detected by radio signals after every station, even through pockets and purses. The transmitter has a range of several meters (hence the name of the card). A radio unit installed in every bus or train car communicates with both the SmartCard and a computer that processes the data. Since detection occurs only en route, cardholders are not billed unless they actually ride. Depending on their preference, they either receive a normal bill or have the charges debited from a pre-paid credit balance.
Bruno Wenger, an engineer at Siemens Transportation Systems in Zurich, Switzerland, is responsible for significant advances that have been made in the development of the system. "There were some hard nuts to crack, as you can imagine, especially regarding the detection and registration processes and the algorithms. But the authorization, payment and security aspects are also pretty complex," he says. The system has to deal with many complicated situations. Furthermore, there is no room for erroneous account charges, which would hurt public acceptance.
At the same time, the system must be highly reliable in terms of registration, or no operatorwhether a transportation company, a museum association or a venue for winter sportswould be interested in using it. Privacy and data protection also play an important role. In addition, it is difficult to keep the card's power consumption low enough to ensure that the battery lasts for at least two full years. Wenger is justifiably proud of the project's success to date. "Our system worked very well in a pilot test in the Basel area in the early summer of 2001," he says. "From the very start, our data acquisition was 99.7 % accurate."
Zero Emission Ship in Sight
Smoke stacks and air pollution may soon be part of the past.
Under the motto "Frigate of the Future," an association of eight companies, including Siemens, is developing ships of the future that run quietly and produce low levels of emissions. As part of the project, Wolfgang Rzadki, a Siemens engineer based in Hamburg, Germany, is working on innovative power supply systems to replace today's diesel-powered generators. One such system uses fuel cell units distributed throughout the ship to supply electricity to a direct-current network that powers electric thrusters via DC/AC converters. For higher speeds, hydrojets driven by electric motors that obtain their power from gas turbine generators will be installed under the ships.
One milestone on the road to the zero-emission ship is the Siemens-Schottel Propulsor (SSP), an energy-saving propulsion system that was developed together with Schottel GmbH & Co. KG, a manufacturer of thrusters. Rzadki was able to improve on existing solutions when designing the SSP. Since the late 1980s, electric thrusters have had their motors located in a gondola mounted below the ship. The gondola can be rotated 360 °. It works also as a rudder. Although this design created more room for cargo and passengers, the size of the gondola meant that a relatively large amount of energy was needed for propulsion.
Rzadki had the idea of replacing the electrically excited synchronous motor used in this solution with a less bulky, permanent-magnet excited motor. The trick here was to fit the motor's rotor with magnets in which torque is created by means of an electric current. This made it possible to reduce the size of the gondola and optimize the propulsion system, which also lowered energy consumption by 10 to 15 %. An SSP of this type is currently being used in a cargo ship, and two ferries scheduled to enter service in the Baltic Sea later this year have also been equipped with the propulsion system.
Interview
Since he left the Semiconductor Group in 1994, Dr. Horst Fischer, 60, has been head of the Siemens department that is responsible for worldwide patents and licenses
As far as Siemens is concerned, has the importance of patents and property rights changed in recent years?
Fischer: Patents became success factors in the global competition. They protect a company's own ideas and products from imitations. But as "intellectual assets," they also represent a value that is used much like a medium of exchange within the context of license-exchange agreements, partnerships, and acquisitions. In the case of divestments, patents play a substantial role in terms of sales revenue or the concession of mutual rights. Exchange agreements are becoming increasingly important between large companies. Each side appraises the other's portfolio. When there is a difference in value, compensation is paid, and the agreements are of limited duration.
Do things usually work out peacefully? How often do companies go to court?
In the IT area, in particular, innovations often take place in small, aggressive companies. We (and our large competitors) are increasingly under attack here, and we therefore must move to enforce our patents when there is a proven violation. The patent battles Infineon successfully waged against Rambus and Hyundai are a good example of this. Patents often serve as weapons, but in most cases the dispute ends with reciprocal licensing agreements and license payments.
What does all this mean for Siemens' patent portfolio?
That its quality has to be as high as possible, and it has to completely cover all the innovation elements of our business. To this end, the patent department has developed assessment techniques and a multitude of tools that enable us to "steer invention onto the right track." It's a type of "innovation on demand," so to speak. Recently, we also began classifying all patent applications on the basis of the quality of the patent. The standards applied here include the effects of the invention on competitiveness and its value for business success.
Siemens also holds a large number of patents that it doesn't use itself. What will happen to these?
Every corporate unit at Siemens has intellectual property rights that cover fields of technology beyond its own business. That allows for cross use, which in turn greatly enhances the patent positions at other Siemens units. New rules have also been in effect since July 2001, including the rule that our patents should be exploited, and we do in fact take advantage of every opportunity to generate licensing revenues. The Siemens Licensing Center has been the focal point of these activities for the past two years.
At Siemens, software accounts for approximately 60 % of the cost of research and development. Can software be patented?
Of course it can. Software patents even account for an increasingly large share of our portfolio. Some groups, such as Automation & Drives and Medical Solutions, have launched special initiatives for such patents. Initial registration of these property rights is increasingly occurring in the U.S., because the legal framework for software patents is very advanced there. This trend is even more pronounced in the case of patents for "business models"in other words, patents for electronic business solutions. Here we've set up a worldwide coordination and counseling center.
Interview conducted by Hartmut Runge