Samsung Smart Phones Patent Strategy - Research Proposal Example

 Proposal for a Research on Samsung Smart Phone’s Patent Strategy Purpose: This proposal seeks to request authorization and funding to undertake a research on Samsung Smart Phone’s patent strategy in the increasingly competitive smart phone industry, where the patent rights often get infringed. Summary: Samsung has been in “operation for over 70 years” through their diversified business operations, delivering innovative products (About Samsung, 1995). Especially in smart phone industry, they have a commendable position in terms of “market share and growth” (About Samsung, 1995). Samsung always focuses its attention to develop an innovative product in Smart Phones with excellent features to maintain their competitive advantage over others in the industry. The “new trend in corporate competition has shifted” from price, quality and feature to intangible identity in terms of right, patent and design (9 Material Issues Patent, 2012). So it has become necessary to establish rigid patent strategies to protect “intellectual property right” (9 Material Issues Patent, 2012). Specifically, the device features a “combination of communication, video, and software” which is frequently subjected to the innovation cycle that entails patent competition (9 Material Issues Patent, 2012). Over the years, the instances of patent related issues and disputes are rising in US, Europe as well as other major economies of the world. By analyzing the trend it is clear that the war is only “going to accelerate more in future” (9 Material Issues Patent, 2012). Being one of the major players in the smart phone industry, Samsung is not free from patent related disputes and issues. Because of the growing concern over the design and right related issues, there exists ample scope for a research on the present patent related issues that Samsung may encounter and to suggest the ways and means to overcome such challenges. Thus, the present research on the strategies that Samsung may formulate and implement is proposed. The research will begin by understanding the method of established patent protection procedure and formulate suitable patent strategies to avoid copying of Samsung’s new innovation by rivals. The research also looks into the ability of the strategy to represent the exclusiveness of new invention. Similarly, Samsung will also have to be cautious as not to imitate any style or design patterns of other leaders in smart phone such as Apple. To perform this research and present a report on the findings, we estimate that we would require 8 hours over the next 4 weeks, for a total cost of around $2000 in addition to the resources that the researchers currently possess. The research team consists of the researcher and has peers. Once the proposal is accepted the research will commence immediately, submitting to you a progress report on 15 April, 2013, and the completion report by 29 April, 2013. The completion report will include all our findings and conclusion for the need of a Smart Phone patent strategy. Introduction: The primary task in the research will be to ascertain the extent to which infringement occurs in the smart phone industry in general and in the case of Samsung in particular. The study will also seek to identify any likely infringement that Samsung may have committed or likely to commit by inadvertently emulating the design of other players in the field, especially Apple. On determining this aspect, the research will dwell on the possible measures that may prevent such occurrences and devise appropriate strategies to eliminate such possibilities. The following figure shows the market share of major smart Phone players, which rightly indicate the upper hand of Samsung over the other competing firms: “Source: International Data Corporation” (Strong Demand for Smartphone and Heated Vendor Competition Characterize the Worldwide mobile phone at the End of 2012, 2013) Patent is considered as the key protector of innovation, which bestows on the inventor an “exclusive right” that prevents other from making or imitating it in a country (Hadzima, 2005). Such rights are highly significant in the case of equipment such as smart phones, which rely heavily on technology. Besides, in Smart Phone industry innovations are the driving force behind the success of companies. The industry also combines communication, video, software as well as other technologies that rapidly undergo innovation cycles and are highly competitive. Thus, the proper protection through patents and copy rights is imperative to remain competitive in the market. Similarly, companies also need to exercise caution to ensure that they do not infringe the rights of others by inadvertently emulating the styles or designs of their rivals. In the current Smart Phone industry, Samsung and Apple are the major players and more than half of market shares are occupied by these two technological giants. By analyzing the patent war between Samsung and Apple we can see two phone-makers that are suing each other in dozens of cases worldwide. Most patent issues have come off by the infringing design and technology. At the center of these disputes that have started in April, 2011, Apple’s allegation is that Samsung had infringed their Smart Phone model. After grappling with each other through a series of cases of infringement suits, involving billions of dollars in damage claims, there still remains the question which company has really violated the norms. Thus, there is an urgent need to rethink Samsung’s strategies to ensure that their designs are not copied by others and also they do not erroneously imitate others. According to Kevin Restivo, senior research analyst with IDC's ,"The high-growth Smartphone market, though dominated by Samsung and Apple, still present’s ample opportunities for challengers"(Strong Demand for Smartphone and Heated Vendor Competition Characterize the Worldwide mobile phone at the End of 2012, 2013). While reading through this line it is rightly emphasized that the market is still more to be exploited. So each and every Smart Phone player must need a cohesive and rigid patent strategy to protect their exclusive rights and to excel in the markets. We proposed to undertake a research on the need for an exclusive screening strategy on the patent development. The research would also emphasis the steps that are essential to protect the patent security. The following sections of this Memo included the proposed tasks, schedules, proposed budget for the research and references that are cited. Proposed Tasks With your approval and consent, we will perform the following task to determine patent related core issues and need for stringent strategy by which Samsung can resolve the patent related issue with Apple and other competing Smart Phone products that available in the industry. 1. Investigate the extent of patent competition and infringement in the Smart Phone industry. Usually patent can be used as strategy to get competitive advantage. In Smart Phone industry innovative technologies and attractive models are essential for survival. It leads to common litigation and infringement activities in Smart Phone industry. Nowadays, patent related sues are common in Smart Phone industry. We will use data from the prevailing patent related cases to determine the extent of infringement and related core issues. 2. Identify the Samsung Smart Phone’s patent related problems with other competing firms and defects of existing patent strategy in the current industrial scenario. “Samsung is mostly accused of imitating Apples Smart Phone” (Bui, 2013) models and technologies. In most cases verdicts are often not favored to Samsung. We would analyze and asses the causes for arising such cases and reason for Samsung’s common failure and also enquire the defects in the existing patent strategy. 3. Identify the step to develop patent security in terms of design and technology. “Proper registration of Intellectual Property is the only source to protect patent” (Strategies to protect Your Intellectual Property, 2012). So it is essential to understand the procedure for registering patent. Each country has its own patent regulating system according to their constitution. We would assess the general patent registration procedure followed by different country. “Strengthening patent alliance is also important for developing patent security” (9 Material Issues Patent, 2012). We would also analyze the methods for building patent related capacity and talent hiring procedure. 4. Evaluate the need for new stringent patent strategies by considering future accelerate patent competition. We would make an assessment chart by using different analytical tools and pointing out the need for establishing a rigid patent strategy. There are different ways to formulate a patent strategy. But the most efficient strategy is one which helps the business to safeguard its “exclusive intellectual property right by proper representation” (Strategies to protect Your Intellectual Property, 2012) and also restricting the business from implementing someone else patented rights. 5. Prepare a recommendation report. We will prepare a recommendation report that deals with the patent infringement problem, our research method, approach and final findings and conclusion. We will also include Samsung’s issue with Apple inc. and the major causes for the failure of Samsungs, and how we formulate a strategic plan based on its patent related case issue. We will also include different court verdicts over Samsung’s patent cases and sum up with the issue of Intellectual Rights and its protection and we will submit the report by 29 April, 2013. Schedule Following is a schedule of the task we will complete for this project. Task1. Investigate the extent of patent competition and infringement in the Smart Phone industry. Task2. Identify the Samsung Smart Phone’s patent related problems with other competing firms and defects of existing patent strategy in the current industrial scenario. Task3. Identify the step to develop patent security in terms of design and technology. Task4. Evaluate the need for new stringent patent strategies by considering future accelerate patent competition. Task5. Prepare a recommendation report. Date of Task (by weeks) Task1 Task2 Task3 Task4 Task5 Budget Following is an itemized budget for proposed project. Name Hours Hourly Rate Cost Total References About Samsung. (1995). Samsung.com. Retrieved from http://www.samsung.com/in/aboutsamsung/ 9 Material Issues Patent. (2012). Samsung.com. Retrieved from http://www.samsung.com/us/aboutsamsung/sustainability/sustainabilityreports/download/2012/2012_patent.pdf Bui, J. H. 2013. Apple vs Samsung: Smartphone Patent War, Practical Implications and Repercussions of Samsung Verdict within the Smartphone Industry. Retrieved from http://www.buigarcia.com/docs/Apple%20v%20Samsung.pdf Hadzima, J. 2005. The Importance of Patents: It Pays to Know Patent Rules. MIE Enterprises Forum. Retrieved from http://web.mit.edu/e-club/hadzima/pdf/the-importance-of-patents.pdf Strong Demand for Smartphone and Heated Vendor Competition Characterize the Worldwide mobile phone at the End of 2012. (2013). IDC Analyze the Future. Retrieved from http://www.idc.com/getdoc.jsp?containerId=prUS23916413#.UUrT8ByLCSp Strategies to protect Your Intellectual Property. 2012. Small Business Development Corporation. Retrieved from http://www.smallbusiness.wa.gov.au/strategies-to-protect-your-ip/%20Using%20IP%20in%20the%20business%20strategy Read More