Where does the Middle East stand in the IT patent wars?

It has been compared by many commentators to a nuclear arms race. Rivals working against the clock to acquire defensive weapons in order to deter one another from firing the first salvo. The pursuit of an expensive stalemate. |

So far the patent dispute between Samsung and Apple has been played out largely in the US courts. More recently, the ban on Samsung's latest Galaxy tablets has expanded from Germany to Australia. Apple is now being counter-sued in Australia for breaches of wireless technology patents and appeals against the German ban are under way.

Google makes $12.5bn acquisition of Motorola, gaining over 17,000 patents

Intellectual property (IP) has been bought up wholesale by the likes of Microsoft and Google, with the latter's $12.5 billion acquisition of Motorola Mobility (and its portfolio of more than 17,000 patents). These patents are being used to fill the legal armouries of the world's technology and IT giants.

"Securing Android is strategically important to Google because Android allows it to maintain a potent position in the increasingly important field of mobile advertising," says Gartner analyst Carolina Milanesi. "Motorola can help Google handle the two primary threats that Android faces, fragmentation and patent litigation. We believe Motorola's 17,500 patents in cellular technology will give Google a stronger defensive position, particularly against Apple, which is increasingly litigious against Android manufacturers, including Motorola itself."

The second issue of fragmentation is about how Google works with its Android partners.

"To make it an effective content, and advertising, delivery platform, Google has to standardise Android so it can evolve more quickly and support higher quality applications," explains Milanesi.

Impact on Middle East and emerging markets

But what are the consequences for developing markets? With IP disputes gaining increasing importance, could markets with weaker regulation be shunned by big brands worried about protecting their multi-billion dollar investments?

"The large global technology players are very careful to ensure that they only expand their operations into markets that have a strong legislative framework," says Dino Wilkinson, Abu Dhabi-based partner at law firm Norton Rose. "No major company would place a research and development facility in a country without first establishing the extent of these risks."

It is the encouragement of research activity that has prompted some countries in the Middle East to place extra emphasis on the legal framework underpinning IP.

"You might argue that a developing economy could benefit from poorly enforced IP laws as it is more likely to be importing technology than creating it," suggests Wilkinson. "However, countries such as the UAE are seeking to position themselves as centres for research and development, technological innovation and the creative industries. They will not attract international businesses or investors in these sectors without that strong legislative framework and a prevailing culture of respect for IP rights."

Patent transactions continue thick and fast

In the first two weeks of September this year Samsung had a further 266 patents granted in the US and applied for a further 286. Google has also purchased a further 2000 patents from IBM in two separate transactions during the summer. The patent brawl stretches beyond Apple and Google.

Oracle, HTC, ZTE, Nokia, RIM and Ericsson are all involved too so what are the chances of Middle East-based technology consumers and enterprise IT buyers missing the effects of the fall-out?

"Any company that wants to file for patent infringement, must have a patent registered in the country in question," says Wilkinson. "Presumably, Apple's patent portfolio will extend to registrations that protect its inventions in the Middle East and it could take action in those countries if it believed its rights had been infringed. However, the current dispute between Apple and Samsung appears to be playing out, for now, in the most lucrative markets for Apple - Europe, the US and Japan. Strategically, it may decide to concentrate formal legal proceedings in those high-stakes jurisdictions, but the impact of any ruling or commercial settlement will presumably be reflected on a global basis."

So it would appear that for now the Middle East will be isolated from any bans enforced in other markets. In the long-term however, the concern is that patents could be used to stifle the opposition, as an alternative to competing through innovation and pricing.