Delphi Creates, Defends Intellectual Property Through Delphi Technologies, Inc.
3 May 1999
Delphi Creates, Defends Intellectual Property Through Delphi Technologies, Inc.TROY, Mich., April 30 -- Delphi Automotive Systems has launched a new subsidiary, Delphi Technologies, Inc. The company will create, manage, protect and leverage Delphi intellectual property (IP), including patents, trademarks, copyrights, software and trade secrets. Delphi Technologies, Inc. was established Jan. 1, 1999, to actively cultivate and manage Delphi's intellectual property which includes, but is not limited to, algorithms, mechanical design, electrical design, manufacturing procedures and materials science. The benefit of intellectual property is that it more clearly establishes those products created by Delphi, and is evidence of Delphi innovation. "Technology and innovation are essential to Delphi's future growth strategy," said Dr. Andrew Brown, Jr., Delphi Technologies, Inc. president and Delphi Automotive Systems engineering director. "We have now expanded our ability to create intellectual property as well as generate licensing opportunities and revenue. Additionally, we have the potential to actually self-invest in Delphi Technologies, Inc. Research and Development operation, which would create a leading-edge paradigm, the first I've seen in industry." Comprised of three groups -- Central Research & Development, Licensing, and Intellectual Property -- Delphi Technologies, Inc. provides Delphi with single-point coordination, focus and prioritization to develop high-quality innovations and knowledge. Delphi Central Research & Development will enhance Delphi's ability to generate knowledge and new technologies for automotive components and systems, working in conjunction with approximately 1,000 research and development staff located globally throughout Delphi. Areas of strength include: * Mechatronics: Integrated electromechanical systems including the electric motor, power and control electronics, sensors and control algorithms. Example: X-By-Wire Systems, a family of braking, steering, throttle and suspension control systems that eliminate mechanical linkages, replacing them with electronics which improves overall vehicle system capability. * Sensors: Translate physical or chemical characteristics into an electrical signal. Example: yaw sensors that measure a vehicle's angular velocity about its vertical axis to determine what systems need to respond to regain vehicle control. On the road today in Delphi's Traxxar(TM) system * Materials: Divided in two areas: Polymers, plastics, including composites, elastomers and fracture mechanics. Example: non-flammable materials for fuel tanks; Electronic materials: Used in sensors, mechatronics and other new devices. * Advanced manufacturing processes: Simulating and optimizing metal removal processes can reduce the substantial amount Delphi spends in this area on raw materials and cutting tools and fluids. "Advanced technology and intellectual property give Delphi a competitive edge," said Dr. Linos Jacovides, Delphi Technologies, Inc. vice president, research & development and Delphi director of research and development. "As a result of the separation from General Motors, we are creating a new organization between Delphi Technologies, Inc. and Delphi with innovation as the linkage. We want to be known as the premier automotive technology research and development organization in the world." The value of expanded knowledge and new technologies is increased through Delphi Technologies, Inc. licensing, which generates revenue and helps to protect Delphi's intellectual assets. In addition to licensing Delphi's IP portfolio, Delphi Technologies, Inc. will ensure effective and consistent use of patent assertion. "You must strongly defend your intellectual property, otherwise it doesn't give you as much of an edge. We now have a separate organization with staff dedicated to protecting and defending our technology and intellectual property from infringement," said Dr. Tony Lee, Delphi Technologies, Inc. vice president, licensing, and Delphi director of licensing. "The value of IP goes beyond just our ability to provide our customers with products based on the latest technology." Delphi's patent and trademark portfolios are managed by Delphi Technologies, Inc. Intellectual Property group. "Our principal responsibility is the oversight of Delphi's patent and trademark portfolios. Our trademarks identify Delphi as the source of our products, and our patents give Delphi an exclusive position that protects our research and development investment," said Charles Veenstra, Delphi Technologies, Inc. vice president, intellectual property and Delphi assistant general counsel. Delphi Technologies, Inc. currently has several thousand patents in its portfolio, and generates hundreds more each year on technologies ranging from vehicle information systems to algorithms in air bag sensors. "As Delphi Technologies, Inc. grows, I expect to see a rapidly increasing patent portfolio and a rapidly increasing recognition of and respect for Delphi's patents and trademarks," Veenstra said. In addition to protecting Delphi's IP within automotive applications, Delphi Technologies, Inc. will reach beyond its automotive customer base to pursue non-automotive applications of technology. One example of a technology that could be licensed to non-automotive customers is EmiSorb(TM), a material for suppression of electromagnetic interference. The same technology could be applied to computers, resulting in increased reliability. "Delphi is in the automotive component and systems technology business, but we'll be looking for opportunities to maximize our return on investment in other fields. We're even looking at leveraging some of our older technologies," Veenstra added. "We've just launched Delphi Technologies, Inc., and we're very excited about the future it will create for Delphi. There is considerable opportunity for Delphi Technologies, Inc. to provide substantial revenues to be reinvested in Delphi's future innovations and advanced technology," said Brown. Delphi Automotive Systems, with headquarters in Troy, Mich., USA, is a world leader in automotive component and systems technology. Delphi's three business sectors -- Dynamics & Propulsion; Safety, Thermal & Electrical Architecture; and Electronics & Mobile Communications -- provide comprehensive product solutions to complex customer needs. Delphi has more than 196,000 employees and operates 168 wholly owned manufacturing sites, 51 customer centers and sales offices, and 27 technical centers in 36 countries. Regional headquarters are located in Paris, Tokyo and Sao Paulo. Delphi can be found on the Internet at http://www.delphiauto.com.