Business Method Patents in Europe and their Strategic Use - Evidence from Franking Device Manufacturers

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Business Method Patents in Europe and their Strategic Use - Evidence from Franking Device Manufacturers

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Wagner, Stefan

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Stefan Wagner

Abstract

There has been a wide-spread misconception based on the imprecise wording of Art. 52 of the European Patent Convention (EPC) that the protection of business methods by patents is prohibited in Europe. This paper investigates the legal framework set by patent laws with respect to the patentability of business methods, contrasting the situation in lege in Europe and the situation in the US. It is shown that in praxi business methods have never been excluded from patentability in Europe. In the empirical part of the paper, 1,901 European patent applications relating to business methods are identified and major patent indicators are computed. Further, a case study from the franking device industry which is characterized by strong competition for intellectual property rights is conducted. It contains evidence for the strategic use of business method patents leading to opposition rates against granted patents of 44%.

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Paper provided by University of Munich, Munich School of Management in its series Discussion Papers in Business Administration with number 1265.

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Date of creation: 2006
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Handle: RePEc:lmu:msmdpa:1265

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Other versions of this item:

Article
- Stefan Wagner, 2008. "Business Method Patents In Europe And Their Strategic Use - Evidence From Franking Device Manufacturers," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 17(3), pages 173-194. [Downloadable!] (restricted)
Paper
- Stefan Wagner, 2004. "Business Method Patents in Europe and their Strategic Use – Evidence from Franking Device Manufacturers," Law and Economics 0410003, EconWPA. [Downloadable!]

Find related papers by JEL classification:
L39 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Other
O34 - Economic Development, Technological Change, and Growth - - Technological Change - - - Intellectual Property Rights

This paper has been announced in the following NEP Reports:

NEP-ALL-2006-12-22 (All new papers)
NEP-EEC-2006-12-22 (European Economics)
NEP-INO-2006-12-22 (Innovation)
NEP-IPR-2006-12-22 (Intellectual Property Rights)

References listed on IDEAS
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.:

Lanjouw, Jean O & Schankerman, Mark, 2001. "Characteristics of Patent Litigation: A Window on Competition," RAND Journal of Economics, The RAND Corporation, vol. 32(1), pages 129-51, Spring.
Harhoff, Dietmar & Wagner, Stefan, 2005. "Modelling the duration of patent examination at the European Patent Office," CEPR Discussion Papers 5283, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Other versions:
- Dietmar Harhoff & Stefan Wagner, 2006. "Modeling the Duration of Patent Examination at the European Patent Office," Discussion Papers 170, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich. [Downloadable!]
- Harhoff, Dietmar & Wagner, Stefan, 2006. "Modeling the Duration of Patent Examination at the European Patent Office," Discussion Papers in Business Administration 1256, University of Munich, Munich School of Management. [Downloadable!]
Griliches, Zvi, 1990. "Patent Statistics as Economic Indicators: A Survey," Journal of Economic Literature, American Economic Association, vol. 28(4), pages 1661-1707, December. [Downloadable!] (restricted)
Other versions:
- Zvi Griliches, 1991. "Patent Statistics as Economic Indicators: A Survey," NBER Working Papers 3301, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
- Zvi Griliches, 1998. "Patent Statistics as Economic Indicators: A Survey," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 287-343 National Bureau of Economic Research, Inc. [Downloadable!]
Lerner, Josh, 1995. "Patenting in the Shadow of Competitors," Journal of Law & Economics, University of Chicago Press, vol. 38(2), pages 463-95, October.
Guellec, Dominique & Pottelsberghe de la Potterie, Bruno v., 2000. "Applications, grants and the value of patent," Economics Letters, Elsevier, vol. 69(1), pages 109-114, October. [Downloadable!] (restricted)
Dietmar Harhoff & Francis Narin & Frederic M. Scherer & Katrin Vopel, 1997. "Citation Frequency and the Value of Patented Innovation," CIG Working Papers FS IV 97-26, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG). [Downloadable!]
Other versions:
- Vopel, Katrin & Scherer, Frederic M. & Narin, Francis & Harhoff, Dietmar, 1997. "Citation Frequency and the Value of Patented Innovation," ZEW Discussion Papers 97-27, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
Harhoff, Dietmar & Scherer, Frederic M. & Vopel, Katrin, 2003. "Citations, family size, opposition and the value of patent rights," Research Policy, Elsevier, vol. 32(8), pages 1343-1363, September. [Downloadable!] (restricted)
Bronwyn H. Hall, 2003. "Business Method Patents, Innovation, and Policy," NBER Working Papers 9717, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Other versions:
- Bronwyn H. Hall, 2004. "Business Method Patents, Innovation, and Policy," Law and Economics 0401001, EconWPA. [Downloadable!]
- Bronwyn Hall, 2003. "Business Method Patents, Innovation, and Policy," Department of Economics, Working Paper Series 1056, Department of Economics, Institute for Business and Economic Research, UC Berkeley. [Downloadable!]
Harhoff, Dietmar & Reitzig, Markus, 2002. "Determinants of Opposition Against EPO Patent Grants - The Case of Biotechnology and Pharmaceuticals," CEPR Discussion Papers 3645, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Other versions:
- Harhoff, Dietmar & Reitzig, Markus, 2004. "Determinants of opposition against EPO patent grants--the case of biotechnology and pharmaceuticals," International Journal of Industrial Organization, Elsevier, vol. 22(4), pages 443-480, April. [Downloadable!] (restricted)

Full references

Cited by:
(explanations, 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.)

Bronwyn H. Hall & Grid Thoma & Salvatore Torrisi, 2009. "Financial Patenting in Europe," NBER Working Papers 14714, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Nicolas van Zeebroeck, 2007. "Patents only live twice: a patent survival analysis in Europe," Working Papers CEB 07-028.RS, Université Libre de Bruxelles, Solvay Brussels School of Economics and Management, Centre Emile Bernheim (CEB). [Downloadable!]

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