Taking Aim at Data Matrix,Patent Hunters Accuse All Global Users of Patent Infringement
25 May 2006
SelfInnovation, the Only Solution for 2D Barcode Industry
Recently, China National Information Technology Standardization Technical Committee published a report, showing that 2D barcode standard Data Matrix users were accused of patent infringement so as to inform Chinese users of legal risks by using Data Matrix standard. Barcode is one of the most widely used informative techniques since more information could be stored with encryption and error correction functions as added value, thus it becomes the innovation technical application popularized in the circles all over the world, e.g. logistics, national defense, epidemic prevention, safety inspection, communication, education and ecommerce and important technique for enhancing the social informative level.
China National Information Technology Standardization Technical Committee reported that Acacia (USA) was accusing major Data Matrix 2D barcode users of patent infringement, stating that Data Matrix barcode users have infringed the patent of 2D barcode developed by Veritec and delegated by Acacia. Veritec has applied this patent named ??Identification symbol system and method with orientation mechanism?? with US patent number of 5,612,524. It is said in original text of this patent that the encoding graph adopted in Data Matrix has been involved in this patent belonging to Veritec, who has already clearly indicated in its listed company bulletin that this patent accusation not only for Data Matrix barcode graph, but also for encoding and decoding tools for Data Matrix.
Although Data Matrix bears three relevant patents, the design of core graph is still involved in the patent of Veritec through the published Data Matrix patent. According to the introduction by the chief editor of International Autoidentification Device Association Website, the accusation on Data Matrix 2D barcode for patent infringement has been existed before. I.D.Matrix who invented Data Matrix once compensated Veritec to settle the accusation in early 1990s.
As it is known that Acacia, the delegation of Veritec for this patent accusation, is a professional patent hunter, specialized in signing patent delegation agreement with smallsized companies and then making profit via accusation. At present, a lot of largesized multinational companies are accused due to the use of Data Matrix 2D barcode, among which Nokia, Adidas, AMD, Boston Scientific, Hitachi and Mitsubishi have all compromised the accusation by continuously using Data Matrix barcode technique with payment since April, 2005. The Acacia CEO, Paul Ryan said that the reconciliation with Nokia brought considerable profit, thus Acacia prepared to enlarge the income by more active patent protective action.
We shall pay more attention to patent issues while adopting international standard. Some people consider that it is safe and reliable to use international standard since they are not familiar with legal issues, which is utilized by multinational companies to achieve industry control via the standard penetration. The formation of international standard does not mean the drafter??s abandonment of intellectual property, but involving complicated issues on patent license. The preface of ISO/DIS 22742 Linear bar code and twodimensional symbols for product packaging indicates clearly that this international standard may infringe some patents, but these two organizations shall not bear the liabilities related with those patents.
In 2005, several IT manufacturers were accused of patent infringement due to the use of Data Matrix, which represents the transformation of potential risks of hidden troubles to realistic threat. Nowadays, national standard 2D barcodes in China are all introduced via international standard, which may bring some issues on legal application of national 2D barcodes at the same time since the patent holder can not provide convenient license service in China, viz. the application of international barcode standard is in the unauthorized status. Once the patentee accuses for patent infringement, great economic loss will be made on the whole industry.
The core of development and application in 2D barcode industry is the technical standard, so it is the key factor for the development of national barcode industry to bear selfinnovated barcode standard with appropriate intellectual property. The development of selfown technical standard with intellectual property has become an important policy in China. It is said that ??we shall improve our industrial level on technology via selfinnovation, for which the key is to enhance our capacity of selfinnovation and master core technique and key technique, support important industrial technology, establish important technical standard and construct the technical base for selfinnovation?? as part of the proposal of 11th 5year planning for national economy and social development by the Central Committee of the Communist Party of China. Besides, the state council also indicates in the notice of supporting policies for the implementation of National Medium / Long Term Scientific and Technical Development Program (20062020) that ??we shall develop and protect intellectual property, master the key technology and intellectual property of important products and actively take part in the establishment of international standard so as to drive the formation of technical standard that we play the most important role??.
The CAS (China Academy of Sciences) information expert and academician Mr. NI Guangnan said that the subject of ??2D barcode New Coding System Development and Key Technical Standard Research?? has been set in the Important Technical Standard Research in 10th 5year planning due to the importance of 2D barcode standard. Encouraged by this policy, a batch of 2D barcode systems with intellectual property, e.g. Hanxin Code, Ziguang Code and SYSCAN Code were developed and applied in national defense, epidemic prevention and ecommerce, which are all more advanced than existed foreign 2D barcode system, so that a complete market application environment has been formed. However, the strengths of our own 2D barcode standard with intellectual property could not be recognized in a short term in the market without sufficient policy support and consensus guide. Thus, the users always blindly select foreign 2D barcode standard in the condition lacking of technical advantages and cost comparison.
Mr. WANG Lijian, the vice chief engineer of Electric Informalization Institute, Ministry of Information Industry, introduced that Ministry of Information Industry would publish the initial 2D barcode industry standard with selfown intellectual property and the recommended plan on 2D barcode for the application in Ecommerce and mobile web. Mr. WANG also indicated that it is encouraged to apply and spread China own innovation technique on 3G standard as well as 2D barcode standard. The standard and application of 2D barcode with complete selfown intellectual property to be published will radically solve the problems involved in the application of 2D barcode existed currently and promote the healthy and ordered development of China informalizaiton
Recently, China National Information Technology Standardization Technical Committee published a report, showing that 2D barcode standard Data Matrix users were accused of patent infringement so as to inform Chinese users of legal risks by using Data Matrix standard. Barcode is one of the most widely used informative techniques since more information could be stored with encryption and error correction functions as added value, thus it becomes the innovation technical application popularized in the circles all over the world, e.g. logistics, national defense, epidemic prevention, safety inspection, communication, education and ecommerce and important technique for enhancing the social informative level.
China National Information Technology Standardization Technical Committee reported that Acacia (USA) was accusing major Data Matrix 2D barcode users of patent infringement, stating that Data Matrix barcode users have infringed the patent of 2D barcode developed by Veritec and delegated by Acacia. Veritec has applied this patent named ??Identification symbol system and method with orientation mechanism?? with US patent number of 5,612,524. It is said in original text of this patent that the encoding graph adopted in Data Matrix has been involved in this patent belonging to Veritec, who has already clearly indicated in its listed company bulletin that this patent accusation not only for Data Matrix barcode graph, but also for encoding and decoding tools for Data Matrix.
Although Data Matrix bears three relevant patents, the design of core graph is still involved in the patent of Veritec through the published Data Matrix patent. According to the introduction by the chief editor of International Autoidentification Device Association Website, the accusation on Data Matrix 2D barcode for patent infringement has been existed before. I.D.Matrix who invented Data Matrix once compensated Veritec to settle the accusation in early 1990s.
As it is known that Acacia, the delegation of Veritec for this patent accusation, is a professional patent hunter, specialized in signing patent delegation agreement with smallsized companies and then making profit via accusation. At present, a lot of largesized multinational companies are accused due to the use of Data Matrix 2D barcode, among which Nokia, Adidas, AMD, Boston Scientific, Hitachi and Mitsubishi have all compromised the accusation by continuously using Data Matrix barcode technique with payment since April, 2005. The Acacia CEO, Paul Ryan said that the reconciliation with Nokia brought considerable profit, thus Acacia prepared to enlarge the income by more active patent protective action.
We shall pay more attention to patent issues while adopting international standard. Some people consider that it is safe and reliable to use international standard since they are not familiar with legal issues, which is utilized by multinational companies to achieve industry control via the standard penetration. The formation of international standard does not mean the drafter??s abandonment of intellectual property, but involving complicated issues on patent license. The preface of ISO/DIS 22742 Linear bar code and twodimensional symbols for product packaging indicates clearly that this international standard may infringe some patents, but these two organizations shall not bear the liabilities related with those patents.
In 2005, several IT manufacturers were accused of patent infringement due to the use of Data Matrix, which represents the transformation of potential risks of hidden troubles to realistic threat. Nowadays, national standard 2D barcodes in China are all introduced via international standard, which may bring some issues on legal application of national 2D barcodes at the same time since the patent holder can not provide convenient license service in China, viz. the application of international barcode standard is in the unauthorized status. Once the patentee accuses for patent infringement, great economic loss will be made on the whole industry.
The core of development and application in 2D barcode industry is the technical standard, so it is the key factor for the development of national barcode industry to bear selfinnovated barcode standard with appropriate intellectual property. The development of selfown technical standard with intellectual property has become an important policy in China. It is said that ??we shall improve our industrial level on technology via selfinnovation, for which the key is to enhance our capacity of selfinnovation and master core technique and key technique, support important industrial technology, establish important technical standard and construct the technical base for selfinnovation?? as part of the proposal of 11th 5year planning for national economy and social development by the Central Committee of the Communist Party of China. Besides, the state council also indicates in the notice of supporting policies for the implementation of National Medium / Long Term Scientific and Technical Development Program (20062020) that ??we shall develop and protect intellectual property, master the key technology and intellectual property of important products and actively take part in the establishment of international standard so as to drive the formation of technical standard that we play the most important role??.
The CAS (China Academy of Sciences) information expert and academician Mr. NI Guangnan said that the subject of ??2D barcode New Coding System Development and Key Technical Standard Research?? has been set in the Important Technical Standard Research in 10th 5year planning due to the importance of 2D barcode standard. Encouraged by this policy, a batch of 2D barcode systems with intellectual property, e.g. Hanxin Code, Ziguang Code and SYSCAN Code were developed and applied in national defense, epidemic prevention and ecommerce, which are all more advanced than existed foreign 2D barcode system, so that a complete market application environment has been formed. However, the strengths of our own 2D barcode standard with intellectual property could not be recognized in a short term in the market without sufficient policy support and consensus guide. Thus, the users always blindly select foreign 2D barcode standard in the condition lacking of technical advantages and cost comparison.
Mr. WANG Lijian, the vice chief engineer of Electric Informalization Institute, Ministry of Information Industry, introduced that Ministry of Information Industry would publish the initial 2D barcode industry standard with selfown intellectual property and the recommended plan on 2D barcode for the application in Ecommerce and mobile web. Mr. WANG also indicated that it is encouraged to apply and spread China own innovation technique on 3G standard as well as 2D barcode standard. The standard and application of 2D barcode with complete selfown intellectual property to be published will radically solve the problems involved in the application of 2D barcode existed currently and promote the healthy and ordered development of China informalizaiton
Copyright © 2001-2010 Syscan Technology All Rights Reserved