Bloomberg.com has an interesting article about patent damages for 2006, asserting that the $1Billion awards level was almost triple the level in 2005. There are some interesting quotes and statistics. One thing I did not like about the article was the assertion that damages were this high because of increased efforts to “fend off competition” by the patent owners. This is just more of that patents are anti-competitive theme that seems to run through much of the current writings. Check out my “About” page linked from this blog to see where I stand.

A patent is property, just like your house. If I were to come uninvited to your house and sleep in your bed, would you be fending off competition for your bed and the food in your refrigerator by kicking me out? As an owner, you expect to be able to throw me out, rent a room, or sell me the house. Patent owners do the same things to their patent properties. Recouping investments, being rewarded for progressive forward thinking, stopping infringements (patent infringement is a tort of trespass), these are all attributes that patent owners should enjoy for production and development of their patent properties.

Calling a patent owner a patent troll just because one doesn’t want to pay for the right to use? her or his property doesn’t help our discussions. Patent owners are not anti-competitve…? they are not the bad? guys.? 

Back to damages …. below are some awards for 2006 as reported by Bloomberg.com.

Top 10 Patent Awards in 2006:

Award                 Winner                     Loser

1. $307 million     Rambus                    Hynix Semiconductor

2. $133 million     Z4 Technologies         Microsoft, Autodesk

3. $112 million     Texas Instruments     GlobespanVirata

4. $78.9 million    Finisar                       DirecTV Group

5. $74 million       TiVo                          EchoStar Communications

6. $65.2 million    Ariad Pharmaceuticals  Eli Lilly

7. $53.4 million    LG Philips LCD            Tatung

8. $52.5 million    LG Philips LCD            Tatung

9. $38.5 million    MuniAuction Inc.         Thomson

10. $34 million     Power Integrations      Fairchild Semiconductor