A recent article from the Idaho Statesman sheds interesting light on how corporations in general — and Micron Technology in particular — react to the supposed “rising tide” of lawsuits now threatening such companies.

In a remarkably candid story, the article reports that while lawsuits are expensive and distracting, companies such as Micron now view them as “a routine part of doing business in today’s technology industry.” According to the article, “industry analysts and financial experts aren’t particularly concerned.” One key reason for this is that companies are more concerned with loss of market share rather than money per se. According to one analyst who covers Micron, “We don’t get into issues that don’t affect the competitive balance of the company … It’s not going to dramatically affect Micron’s market share.”

Finally, the article notes that, while Micron Technology is currently on the receiving end of patent infringement lawsuits, the company still obtains some 1700 to 1800 patents of its own per year and isn’t shy about enforcing them.

Commentary:

What’s interesting and significant about all this is that litigation may not actually be as threatening as companies would have the public believe. So long as everyone in the industry is treated more-or-less equally, and — importantly — any resulting costs can ultimately be passed on to consummers, little long term threat to the company actually exists. Market share is ultimately what it’s all about.

This should be kept in mind by anyone contemplating enforcing a patent against a large company. Settlement is much more likely to result if royalties can be passed on to consumers rather than come directly out of company coffers. Settlement is also much more likely to result if companies do not feel they are being singled out and are confident their competitors will be paying royalties too.

Ultimately, companies can’t have it both ways. They cannot expect a legal system to provide meaningful protection for their own ideas while denying similar protection for the ideas of others. This article suggests that companies, such as Micron Technology, understand and accept this reality.