I take Lutton's point to be that companies such as RPX, Intellectual ventures and many others like them have created a virtual patent marketplace where a startup can go shopping for patents.
He is clear that a startup can't afford the same size portfolio as an established company such as Apple. However if it defines its landscape carefully it can have similar coverage in its limited markets as bigger companies that span broader markets.
"We can build a full, robust IP strategy on a startup's budget and still have some of the same things we had at Apple," said Richard "Chip" Lutton, general counsel at startup Nest Labs and former chief patent counsel at Apple.
I don't quite understand how you can do that. Can you elaborate on this?
A derivative is an investment based on the value of an underlying instrument. In essence, what is emerging is a derivative market based on intellectual property, and it is exhibiting all the same ill traits that one sees with "swaptions" and the other exotic derivatives that have made the international trading world a house of cards, an emperor with no clothes.
This is not what patents were designed to do, and it must stop before it undermines the innovation needed to drive new companies forward, to bring new ideas to the marketplace, and to deliver value to those who build the better mousetrap.
What are the engineering and design challenges in creating successful IoT devices? These devices are usually small, resource-constrained electronics designed to sense, collect, send, and/or interpret data. Some of the devices need to be smart enough to act upon data in real time, 24/7. Specifically the guests will discuss sensors, security, and lessons from IoT deployments.