As Vehicles Become Computerized, NPE Patent Owners Are Targeting Automakers

Automakers, high-tech software companies, and electronics companies are increasingly facing similar challenges as vehicles become computers on wheels.  For example, the global chip shortage is delaying the production of phones, laptops, and vehicles alike. Unsurprisingly, these similarities are also extending to how the automotive sector is being targeted by non-producing entities (NPEs) for patent infringement law suits.

Software and electronics companies were historically some of the largest targets for patent infringement law suits, including those brought by NPEs. Typically, companies engage in patent infringement suits, or patent wars, to capture market share by excluding rivals from the market. However, for developing markets, such as the electric and autonomous vehicle (E/AV) market, the high cost of patent litigation makes patent wars counterproductive. This is why some leading E/AV makers are attempting to lure competitors to the market by intentionally not