For most IT companies today, the term ‘research & development’ really means ‘development’. Big name companies, ranging from Cisco Systems Inc to Compaq Computer Corp, spend heavily on making acquisitions and ensuring that products meet demand, but they do not do a lot of pure research. In spite of this, there was a dramatic increase in the number of new patents filed in 1998, both in the US and in Europe. Fueling a 33% increase in overall patent applications, IBM Corp filed a record 2,657 patents, up 54% from the year before, while other companies, such as Samsung Electronics of Korea, also recorded big increases. In Europe, the European Patent Office (EPO) identified telecoms as the main driver for a rise in applications of between 10% and 13%. But the EPO also said that more than quarter of European patents were granted to US companies. So if there is more development than research, why should this be? The answer is simple: IBM earned $1bn in patent licenses last year, and lawyers are urging companies to patent everything they might earn revenue from. The fact that this also helps lawyers is, of course, a coincidence.
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