On the face of it, one would give little thought to how much the evolution of the mobile device may end up mirroring the evolution of the automobile. After all, the two products differ in their complexity and their manufacturing considerations to such an extent one might wonder where they could relate at all. Yet mobile device makers would do well to take note of one key area where automotive manufacturers have learned vital lessons - the importance of sharing.
Car shopping may not be the most enjoyable consumer experience, but one thing is guaranteed - No matter the number of dealerships and brands you peruse, the vast majority share the same set of standard and optional features. By and large equipment such as intermittent wipers, heated seats and ABS are offered by every brand. Even if there is a feature only offered by a single brand, you will not find yourself in a position of asking a Ford salesperson if you can purchase keyless entry and having the salesperson respond, "I'm sorry but Chrysler holds the patent, and they aren't keen on sharing".
On the other hand today's tech headlines usually involve one or two stories concerning patent battles between smart phone producers, especially the two biggest - Apple and Samsung. From physical product shape to OS features, the court battles are fierce and involve hundreds of millions of dollars. So unlike the aforementioned scenario with car shopping, finding a mobile device that has all the features you desire is unlikely because the brands essentially (and purposely) prevent your ideal device from existing.
So how did automobile manufacturers find this marketplace zen? Surely their desire to better their competitors is as fierce as any other business. So was there an epiphany moment over a bottle of scotch in a oak paneled office somewhere in Detroit? Not exactly - but not too far from reality either. The truth is that car makers learned a lesson that today's tech companies should heed - that sharing is preferable to spending endless years in court.
According to sources including the book The Automobile Age (James J. Fink) and Monopoly on Wheels (William Greenleaf and David L. Lewis), a patent battle that loomed over the use of the gasoline engine for over 8 years in the early 20th century triggered the National Automobile Chamber of Commerce to create a cross-manufacturer patent sharing agreement in 1914 where even non-member companies such as Ford agreed to share their patents (at that time Ford had 92 patents) without expectation of royalties. In fact, the agreement has been renewed at five year intervals since 1935.
As the automotive industry has continued to evolve with hybrid and electric vehicle innovations playing a critical role, this agreement could be seen as holding even greater importance today than at any other time in the history of the industry, and yet the renewals happens apace. Consider that the brake force redistribution technology that is commonly used by different manufacturers in their hybrid models was originally patented by Toyota in 1994.
This patent sharing agreement not only holds historical significance for the mobile technology industry in how they can reinvent relationships with each other, it also clearly demonstrates that a healthy, competitive market can still exist after patent sharing becomes the norm. Most importantly, the companies who are stakeholders in the agreement do not lose face, market share, or their ability to woo buyers to their brands.
Ultimately mobile technology leaders may do best by employing a little backward thinking in order to move forward.
