And its the right thing for tech more generally to take them on.. I do feel a responsibility to stand up for that, but my number one responsibility is to Sonos continuing to grow and innovate. Thats an important part of it. People have liked the curated station. Second is interoperability. Sonos sued Google over the way Google Home speakers sync up and work together, and Sonos won. Staying tight with all of todays streaming services and technology leaders, plus trying to tap into new startups as well and understanding whats happening in the space thats where my team and I spend time trying to figure out the landscape. Its that combination of expertise and relationship, because the relationships crucial. You and I have spoken many times since then. NP: The argument there is Sonos has been around for a long time. Winning validity on all the patents that are up very rarely happens. NP: We have spent a lot of time talking about Google thats obviously who youre suing. But now youre also responsible for what they say or do or program, which I think has been shocking to many tech companies. Whats your decision-making framework? PS: I think we will continue to innovate. Google confirmed to The Verge today that it has filed two new lawsuits against Sonos that allege the speaker company is infringing on Google's patents for smart speakers and voice control. Youre in that situation. If you dont have greater interoperability, the smart home and other very important new markets are going to devolve down to just a very few huge players. This lawsuit has been brewing for two years, and the fact that Google wasn't prepared for workarounds on these issues when possible, given all that time, doesn't seem acceptable. Are they meaningfully better or are you just seeing how this one goes before you turn your attention to Amazon? Almost exactly two years ago, Sonos sued Google over patent infringements regarding multi-room speaker technology. Our team will figure out how to work most effectively. In late September, for example, Google filed a declaratory judgment action to try to head off Sonos' assertion of additional patents in a second infringement case against Google. Thats a big decision youre now in the content business. Paul Thurrott. It was a combination of expert judgment that led me to the strong conviction that our patents were going to survive an unbelievable onslaught by Google. The lawsuit, which was filed Tuesday in Los Angeles, says Google gained knowledge of Sonos technology when the two companies worked together to bring Google's streaming music service to Sonos . All Rights Reserved, By submitting your email, you agree to our. Obviously, we started to get into new categories as well. It is an evergreen investment. Its a symbiotic relationship with the engineering teams. People have the same complaints about Amazon. Is that something you want to extend? They have to be very specific. Obviously Im watching whats happening in the industry as well. How do you make that call? PS: We are working on some really exciting stuff that I cant wait to tell you about. The lawsuit is part of a cross-jurisdictional battle between the two companies which spans Canada, the U.S., France, the Netherlands, and Germany. Lets not forget why were doing this at the end of the day. After Google lost an earlier patent case over speaker volume controls, Google is now suing Sonos over voice control technology. Obviously, my growing up inside of Blackberry creates a healthy paranoia in terms of making sure that were building Sonos in a way that it will be here, and make any kind of pivots or turns that it needs to be successful, for decades to come. PS: No, absolutely. EL: I think thats just wrong. This is a place where we should stand up for whats right. NP: Ive never had a CEO with their lawyer in the room. When do you go to Eddie and say, I think we should sue Google, or Eddie, when do you come to Patrick and say, I think we should sue Google?. The two companies have also been fighting with each other in courts in Germany, Canada, France and the . Google went on to countersue Sonos, and the conflict between the two companies is also being litigated in front of the International Trade Commission. But the core of Sonos business is never going to be to litigate and get a bunch of patent royalties. "Due to a recent legal ruling we're making some changes to how you set up your devices, and the Speaker Group functionality will work moving . John Deere now employs more software engineers than tractor mechanical engineers, which is utterly surprising if you think about it. I think people need to step back from that potential knee-jerk reaction and understand why we have a system the way we do and the way that its being abused right now to eliminate competition. "We will seek further review and continue to defend ourselves against Sonos' frivolous claims about our partnership and intellectual property," a Google spokesperson told us. One of the new lawsuits filed last week by Google covers three patents that it says Sonos uses "to control its products in a power-efficient manner through the use of 'hotwords' and to manage battery charging of its product" using technologies invented by Google. We talked a little bit about partnerships and how you need them. Its probably somewhere in the middle in terms of where that is. Then the other thing that most companies like ours are thinking about is other areas you can go. How many people do you have? Eddie, how big is your team? On Tuesday, Sonos sued Google in two federal court systems, seeking financial damages and a ban on the sale of Google's speakers, smartphones and laptops in the United States. Have you changed where youre hiring? I want to talk about all of that, as well as how you make decisions to engage that function as part of your companys operations as the CEO and chief legal officer, but we have to ask the Decoder questions first. Sonos first sued Google in early 2020. NP: Patrick, Im curious for your perspective on this. EL: I was new to Sonos when we started making these decisions. How do you make that call between the ones youve won with before versus the ones that youre going to put at risk? In his statement, Mr. Lazarus said that the alternative designs proposed by Google might degrade or eliminate product features in a way that circumvents the importation ban but that Googles products still infringed on dozens of other Sonos patents. It has been pretty minimal from my side because Eddie and the team do a great job on this front. Once you commit to that mindset the magic is the software your software cost tends to grow. We dont have any regulatory people in Europe. We also have Eddie Lazarus, the chief legal officer at Sonos. They will just keep the same price, because their lossless is cheaper than Amazons lossless or whoever else. 2023 Vox Media, LLC. PS: A good deal of time making sure that we have the partnerships that we need. Eddie, I dont know if you want to add anything. Sonos had no further comment at time of publication. Sonos (SONO) alleges that Google (GOOG) stole its technology for creating a system of. And were not just going to let somebody get away with copying those things. It is bipartisan. The phrase you used was, biased to action, which I have ruthlessly stolen, by the way. Lets start all the way back at the beginning. This modification directly results from the ITC's decision, as the group found the feature violated a patent from Sonos. They flood the market with them at probably below cost because theyre actually not looking to make money on those products. We also said, Its not at the exclusion of. Thats been our experience as well. In this day and age, the kind of people we hire will know where they can be most effective. In response, Google had to change how. I try to keep it as small as possible in terms of that feeling, culturally, but its hard at this number, certainly. Are you like, I just vibe with these guys, or do they do decks? Google took out all the photo sharing services back when they made Google Photos free. Do we want all of this coming down to a couple of companies that have all the power? Its really us, as well, sharing with our customers our perspective on the world, to some degree, and the kind of artists that we think should be celebrated. The actual lawyer is right there. has definitively validated the five Sonos patents at issue in this case and ruled unequivocally that Google infringes all five, Eddie Lazarus, the chief legal officer at Sonos, said in a statement. In September, Sonos then sued Google . We get sued by trolls not infrequently, but solving that by undermining the value of innovation is really not the way to go about it. January 7, 2022. The other part of it is understanding whats happening in the industry and being able to make that shift, for instance, from digital downloads to streaming knowing how important it is to be engaging with all of those partners because we want to be there for our customers. Thats the fun stuff that occurs out of everybodys line of sight the generational process of capturing one wave of innovation after the other. Being transparent with our partners was key. PS: Innovation is at the core of everything we do. I felt that was a good balance for really what we try to do. In other areas, Web3 might be an area, or a metaverse or VR or AR, whatever you want to talk about. Alphabet Inc.'s Google said it's the rightful owner of patents on ways to keep music playlists in the cloud that form a key component of a lawsuit Sonos Inc. filed over the Google Play Music system. Patrick Spence and Eddie Lazarus from Sonos. I would go acquire some MP3s from wherever I acquired them from ideally legally. (More on that . How does a company like Sonos take what engineers and designers make and turn them into patents? Its been cultural change throughout the entire organization, whether its product or go-to-market. Thats the key: a problem no one else has solved before that you solve in a unique way. The lawsuits are in part a byproduct of the sprawling businesses of todays tech giants. Its really led from the strategy of, What do we want to achieve in that particular area?. EL: I pick lawyers, not law firms. Theyre just charging the same rights to everyone. And ignoring. Where are we setting our priorities? We want to create something that were more proud of as an organization.. Great to talk to you again. Sonos counterclaimed that Google's patent is invalid due to obviousness and lack of inventiveness. Sonos filed yet another lawsuit against Google on Tuesday, alleging the tech giant copied more of its innovations, specifically for Google's smart speakers. The patent battle between Sonos and Google just went in the speaker maker's favor, with a final ruling finding that Google imported and sold products that infringed . Id put them on my desktop computer. If something does happen in Web3 and theres a transition or a shift in terms of how music is delivered or serviced, we will be there to support it for our customers. Google Infringed on Sonos Speaker Technology, Trade Court Rules, https://www.nytimes.com/2022/01/06/technology/google-sonos-patents.html. Prior to the pandemic, we had 15% working from home. Google, I think, infringes over 100 of those today. 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