Dictionary definition of “submarine patent”

submarine patent

n. a patent that, when issued, forces companies already using the newly patented technology to pay retroactive licensing or rights fees. Subjects: English, United States, Business, Jargon

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Citations: 1993 James W. Crowley Dispatch (Columbus, Ohio) (Dec. 12) “OSU Could Lose Out In World Of Patents” p. 4B: A man fought with the Patent Office for 15 years while lots of different laser products were being developed. Eventually, makers of laser products were forced to pay him. “We call those “submarine patents,” Nickey said. “When he came to the surface, he made a lot of money.” 1994 Andrew Pollack @ Tokyo New York Times (Jan. 24) “U.S. Agress to Alter Patents’ Period of Coverage” p. D2: Occasionally, patents take a decade or two to be granted because they are held up in appeals and amendments in the Patent Office. When this happens under the existing system, an inventor can obtain a 17-year monopoly on an invention made long ago and demand payments from companies that have long been using the technology on the assumption that it was not protected by patents. Because these patents remain hidden for a long time and suddenly surface, they have been called “submarine patents.” 2004 Robin Bloor The Register (U.K.) (July 2) “Patents and the threat to open source”: Acacia is one of a number of companies that are making a good living by sitting on patents that are actually very general in their application. Individuals can register such patents, with no ability to develop associated product, wait for infringing products to appear, then get a good lawyer and go hunting. Such patents are sometimes referred to as submarine patents.

Posted 7 Jul 04 | Permalink | Tell a Friend