Quanta Brief Summary Jacob Marmolejo

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Jacob Marmolejo Assignment for April 29, 2011

Quanta Computer, Inc. v. LG Electronics, Inc. Brief for iBiquity Digital Corporation as Amicus Curiae Supporting Respondents, 2007 WL 4340887 (U.S., Dec. 10, 2007)

  • iBiquity is the leading developer of HD radio.
  • The main argument of the brief shows why the Court should not adopt an overly-expansive version of the patent exhaustion doctrine.
  • The brief also shows the advantages of a two-tiered licensing program, which is found in Ibiquity's patent licensing agreement.
  • A two-tiered licensing program benefits the companies, consumers, and the national economy. This licensing program promotes the progress of Science and Useful arts, which is the main goal of patents.
  • iBiquity lacked the financial resources, experience, and capacity to develop the new chips and receivers without this program.
  • The program encouraged other people to invest by reducing the licensee's risk by spreading royalty costs among a larger group of companies in the manufacturing chain, and deferring a substantial percentage of royalty costs until the product was sold. Without this program,the royalty cost may be too risky and too costly for companies.
  • Even if the companies were willing to pay this increased royalty, the added cost may be transferred to the consumer.
  • Spreading the royalty cost to multiple consumers also gives consumers the choice of multiple producers and manufacturers, which decreased the price for consumers.
  • iBiquity grantsed chip makers a limited set of rights to make chips and to use them solely for testing purposes.
  • iBiquity grants receiver manufacturers rights to make, use, and sell receivers embodying iBiquity's patents.
  • Companies like Ibiquity should be permitted to structure their patent licensing programs in ways that they and their licensees believe will best promote the further development and commercialization of their inventions. Companies should be granted this permission because they have invested great resources and time into developing the technologies.
  • There is no disadvantage to this licensing program, which benefits, producers, manufacturers, and consumers.