An empirical study on the determinants of essential patent claims in compatibility standards
AbstractIn the field of compatibility standards, an increasing number of companies claim to own so-called essential patents (i.e. those patents that are indispensable for designing and manufacturing products conforming to the standard). It is widely believed that the ownership of such patents is a very valuable bargaining tool in cross-license negotiations, while for non-producing firms such patents may result in a substantial stream of licensing revenues. In this paper we study the determinants of essential patent claims in compatibility standards. In particular, we assess the role of two main factors: the significance of the technological solution contained in the patent and the involvement of the applicant of the patent in the standardisation process. We examine the case of W-CDMA, one of the most successful standards in mobile telecommunications. We compare the patents claimed essential for this standard with a control group of randomly selected, unclaimed patents covering the same time period and technology classes. We find empirical evidence that both factors have significant impact on the probability that a patent is claimed as essential, but the involvement in the standardisation process is a stronger determinant than the technical value ('merit') of the patent. On the basis of our findings, we offer policy recommendations.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Research Policy.
Volume (Year): 40 (2011)
Issue (Month): 7 (September)
Contact details of provider:
Web page: http://www.elsevier.com/locate/respol
Essential patents Compatibility standards IPR policies Mobile telecommunications W-CDMA Economics of information systems;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Marc Rysman & Timothy Simcoe, 2008.
"Patents and the Performance of Voluntary Standard-Setting Organizations,"
INFORMS, vol. 54(11), pages 1920-1934, November.
- Marc Rysman & Tim Simcoe, 2005. "Patents and the Performance of Voluntary Standard Setting Organizations," Working Papers 05-22, NET Institute, revised Oct 2005.
- Rysman, Marc & Simcoe, Tim, 2009. "Patents and the Performance of Voluntary Standard Setting Organizations," PIE/CIS Discussion Paper 418, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
- Carl Shapiro, 2003.
"Navigating the Patent Thicket: Cross Licenses, Patent Pools, and Standard-Setting,"
Law and Economics
- Carl Shapiro, 2001. "Navigating the Patent Thicket: Cross Licenses, Patent Pools, and Standard Setting," NBER Chapters, in: Innovation Policy and the Economy, Volume 1, pages 119-150 National Bureau of Economic Research, Inc.
- Shapiro, Carl, 2000. "Navigating the Patent Thicket: Cross Licenses, Patent Pools, and Standard-Setting," Competition Policy Center, Working Paper Series qt4hs5s9wk, Competition Policy Center, Institute for Business and Economic Research, UC Berkeley.
- Carl Shapiro, 2004. "Navigating the Patent Thicket: Cross Licenses, Patent Pools and Standard Setting," Levine's Working Paper Archive 122247000000000539, David K. Levine.
- Nicolas van Zeebroeck, 2011.
"The Puzzle of Patent Value Indicators,"
ULB Institutional Repository
2013/60729, ULB -- Universite Libre de Bruxelles.
- Carpenter, Mark P. & Narin, Francis & Woolf, Patricia, 1981. "Citation rates to technologically important patents," World Patent Information, Elsevier, vol. 3(4), pages 160-163, October.
- Bekkers, Rudi & West, Joel, 0. "The limits to IPR standardization policies as evidenced by strategic patenting in UMTS," Telecommunications Policy, Elsevier, vol. 33(1-2), pages 80-97, February.
- Albert, M. B. & Avery, D. & Narin, F. & McAllister, P., 1991. "Direct validation of citation counts as indicators of industrially important patents," Research Policy, Elsevier, vol. 20(3), pages 251-259, June.
- Timothy S. Simcoe & Stuart J.H. Graham & Maryann P. Feldman, 2009. "Competing on Standards? Entrepreneurship, Intellectual Property, and Platform Technologies," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(3), pages 775-816, 09.
- Criscuolo, Paola & Verspagen, Bart, 2008. "Does it matter where patent citations come from? Inventor vs. examiner citations in European patents," Research Policy, Elsevier, vol. 37(10), pages 1892-1908, December.
- Deepak Hegde & David C. Mowery & Stuart Graham, 2007. "Pioneers, Submariners, or Thicket-builders: Which Firms Use Continuations in Patenting?," NBER Working Papers 13153, National Bureau of Economic Research, Inc.
- Roberto Fontana & Alessandro Nuvolari & Bart Verspagen, 2009.
"Mapping technological trajectories as patent citation networks. An application to data communication standards,"
Economics of Innovation and New Technology,
Taylor & Francis Journals, vol. 18(4), pages 311-336.
- Roberto Fontana & Alessandro Nuvolari & Bart Verspagen, 2008. "Mapping Technological Trajectories as Patent Citation Networks. An application to Data Communication Standards," SPRU Working Paper Series 166, SPRU - Science and Technology Policy Research, University of Sussex.
- Ashish Arora & Andrea Fosfuri & Alfonso Gambardella, 2004. "Markets for Technology: The Economics of Innovation and Corporate Strategy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262511819, January.
- Justus Baron & Henry Delcamp, 2010. "Strategic inputs into patent pools," Post-Print hal-00488272, HAL.
- Nambisan, Satish, 2013. "Industry technical committees, technological distance, and innovation performance," Research Policy, Elsevier, vol. 42(4), pages 928-940.
- Byeongwoo Kang & Rudi Bekkers, 2013. "Just-in-time inventions and the development of standards: How firms use opportunistic strategies to obtain standard-essential patents (SEPs)," Eindhoven Center for Innovation Studies (ECIS) working paper series 13-01, Eindhoven Center for Innovation Studies (ECIS), revised Feb 2013.
- Byeongwoo KANG & MOTOHASHI Kazuyuki, 2012. "Determinants of Essential Intellectual Property Rights for Wireless Communications Standards: Manufacturing firms vs. non-manufacturing patentees," Discussion papers 12042, Research Institute of Economy, Trade and Industry (RIETI).
- Christian Le Bas & Julien Pénin, 2014. "Patents and innovation : Are the brakes broken, or how to restore patents’ dynamic efficiency ?," Working Papers of BETA 2014-02, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.