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Auto Makers Increasingly under Attack of Patent Trolls

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Wednesday, August 7th, 2013
SEOUL, KOREA- In a situation where major electronic and info-tech companies are mired in high-stake patent infringement suits, auto makers have also increasingly been subject to the attack of so-called "patent trolls."Patent troll is a a company that enforces its patents against alleged infringers in a manner considered excessively aggressive or opportunistic. For so long, the automobile industry has been considered a safe haven from patent infringement disputes. As more and more electronic parts are embedded in a car, however, this is no longer the case.
 
According to auto industry sources on August 6, American Vehicular Sciences LLC, an Austin (Texas)-based patent management firm, has raised a total of ten lawsuits against Hyundai Motor and Kia Motors claiming infringements on patents it holds. The firm was established in January last year after acquiring 310 auto-related patents from Automotive Technologies International Inc. Since June and July last year when the firm brought Toyota and BMW to court, it has gained notoriety as a formidable "patent monster."
 
In October last year, American Vehicular Sciences filed six lawsuits against the two Korean auto manufacturers (3 suits each) with the U.S. District Court for the Eastern District of Texas. It then followed up with another four suits against Hyundai in February this year. These patent disputes aimed at the companies' diagnostic and monitoring systems and telematics.
 
An auto industry official said, "As automobile innovation focuses more on smart car and other similar areas away from development of high-efficiency engines and transmissions, we have no choice but to face up to these challenges."
 

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