It is not everyday for Apple and Samsung to find a basis for cooperation, but even these arch rivals can agree to step in a patent troll.
Both companies convinced the federal court to invalidate patents related to mobile hot spots created by smartphones. This patent was held by a company that is used only to sue other companies.
IXI IP claimed that licensing fees from Apple, Samsung, and other mobile phone manufacturers are patented for the entire concept of mobile hot spots. Specifically, "a system, a device and a computer readable medium for providing a wireless network managed using a short-range wireless signal", Patent No. 7,039,033.
Telephone manufacturer lawyers were able to convince the Federal Circuit Court of Appeals that the Hotspot Patent was not the original idea and should never be awarded. They showed that the idea of mobile hot spot is already described in the book published before the patent application. That is a brief explanation. The legal basis is more complicated.
How Troll got a hot spot patent
IXI IP is commonly referred to as "patent troll". Because it is a company that does not research and does not produce products. A similar company generally purchases patents, gathers patents, and uses it to request licensing fees from other companies.
These are the symptoms of the US Patent and Trademark Office problem. Although the number of patent applications has increased dramatically, the budget of this agency is dramatically increasing. Then a patent will be granted when it should not be done.
Sometimes these are called "obvious" patents. It was a case of IXI IP hotspots. It is when patents are awarded to companies and individuals for ideas already widely prevalent …