From closed to open:
a quick description of the new patent strategy adopted by IBM Corp of
the US. The firm draws in about US$1 billion annually from patents, but
now plans to open up access to much of its intellectual property (IP),
entering into collaborations with partner firms across boundaries of
nation, organization, industry, etc. We spoke with John E Kelly III,
who directs the company's research efforts, about why open-source is so
important, covering such diverse topics as the firm's interest in the
Smart Grid and the future of the semiconductor industry.
Three big transitions are in progress globally. First, sensors are being mounted on everything in the world; not only radio frequency identification (RFID) tags and automotive sensors, but even sensors for the oceans, natural resources, you name it. Second, different types of equipment are being interconnected. And third, all data is being analyzed in-depth, and having various information added to it.
We are making the planet smarter by adding sensors to everything, by interconnecting everything, and analyzing data and enhancing it with information.
No, it's open. We are developing a system based on an open-source standard, not a dedicated system. It is very important to be using Linux, or open communication standards or protocols, for example. If each manufacturer uses its own dedicated components, it will be impossible to interconnect them. That's why we all have to cooperate with open systems.
The only way to ensure long-term corporate competitiveness for ourselves is to cooperate with other companies in an open manner, and promote open innovation.
IBM invests US$6 billion annually into research and development (R&D), and this investment has generated much of the intellectual property and technology that drives the information technology industry today. Our investment may be larger than all of our competitors together. Our strategy is to share these resources through licensing, receiving a reasonable fee for them.
If IBM were a closed company, it might be possible to leverage our huge portfolio of 40,000 patents to force all the other companies to stop business. That isn't our strategy, though. Our strategy is to license technology, receive US$1 billion a year in patent licensing fees, and spend US$6 billion a year on R&D. We don't recover our investment entirely through licensing, and we have no intention of stifling innovation.
Oh, unquestionably. Sometimes we have to make difficult decisions. Take Linux, for example: we made the decision not to exercise any patent rights we hold on Linux, because as soon as we did, all Linux development would halt. We have a number of patents with the power to stop Linux development completely, but we recognize that Linux is an extremely important open-source platform, and decided not to exercise those rights.
We aren't exercising patent rights in fields like medicine or education, either, or receiving royalties, because these are very important areas for society. I wish that more companies would maintain this sort of balance.
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