EPO Patent applications

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Tackling the role of Patents for Technology
Markets Issues for Data collection and
Analysis Maria Pluvia Zuniga Dominique
Guellec Directorate for Science, Technology and
Industry
Emerging Frameworks and Strategies for Enabling
and Controlling Knowledge National Academies,
21st Street and Constitution Avenue, NW,
Washington, DCJanuary 29-30, 2007
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Outline

• Introduction
• Patents and Technology Markets
• Patterns
• Policy concerns
• Measurement of Technology Diffusion
• Experience in Surveys
• Projects for Data Collection

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1. Introduction

• What is the role of patents in the functioning of
  new infrastructures for knowledge?
• Through disclosure, patents increase knowledge
  diffusion
• Through market transactions (licensing..),
  patents facilitate technology diffusion
• But patents may also restrain access to
  technology and limit development of capabilities
  innovation
• How to deal with patent rights to ensure access
  and fluidity in cyber-infrastructure?
• To date, more anecdotal than empirical evidence
• Need to quantify understand uses of patents and
  exploitation strategies

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2. Patents and Technology Markets (1)

• Business Tendencies
• Shift to Open Innovation models where external
  links play a more prominent role both in the
  creation and production of technology
• Licensing-out to recoup the costs of innovation
  face to faster peace of innovation
• Licensing-in to leverage technological assets and
  complement internal capabilities
• Different forms of partnerships, -purely
  licensing, equity financing, cross-patent
  pooling, etc.
• Increasing adoption of IAM practices
  (Intellectual Assets Management) to increase
  business value

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3. Patents and Technology Markets (2)

• Theoretical Foundations
• Patents help to
• Facilitate the provision of complementary tacit
  knowledge (i.e. know how, technical assistance,
  etc.)
• Better allocation of resources through a more
  efficient division of labour amongst firms (e.g.
  fabless companies)
• Technology markets help to
• Prevent RD duplications, increase diffusion of
  public and private RD outcomes

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4. Patents and Technology Markets (3)
Patents as obstacles

• Strategic uses (submarine, sleeping patents,.)
  Blocking entrants/competitors limiting
  technology alternatives
• Anti-commons tragedy under-utilization of
  technology too many owners blocking each other
• E-based infrastructures (eg.e-bussiness models,
  e-science..)?
• Avoiding tragedy requires overcoming transaction
  costs, strategic behaviours, and cognitive biases
  of participants
• Conciliate upstream creation/downstream
  development

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5. Patterns

• Growing but under-exploitation of patenting
• World-wide licensing transactions average more
  than USD 36 billion per year between 1990 and
  1997, compared to 5.6 billion in the 1980s
• ? 100 billions USD in 2002 (Athereye Cantwell,
  2005)
• PATVAL-EU Survey Less than 10 of patents are
  subject to licensing (out) but
• 10-15 Willing to be licence 50 potential
  increase in the size of the market
• 35 of patents are not used at all blocking
  18.7, sleeping 17.4
• JPO Survey 8 of JPO patents are licensed, and
  7 are unsuccessfully offered to license

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6. Policy Concerns

• How to enhance licensing by technology producers
  in the interest of both buyers and sellers?
• How to unlock (latent) economic value of
  patents?
• How to improve access to technology?
• Reduce anticommons (patent thicket) and foster
  RND (Reasonably Non Discriminatory Practices)

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7. Measurement of technology diffusion

• Key issue for Analysis and Policy Evaluation
• Significant advances in (International) Patent
  Data (e.g. PATSTAT). Allows to track
• Patenting strategy (e.g. technology blocking,
  continuations) and trends across patent systems
• Knowledge Diffusion effects
• Limited data on technology markets. Need of
  uniform, consistent and relevant indicators
• What are the motivations for licensing-in and
  out? (strategic/defensive, constrained
  licensing, technology-oriented strategies)?

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8. Experience in Surveys

• 1994 Carnegie Mellon Survey (Yale 2 USA) on the
  effectiveness of patents in protection
• JPO Survey (Japan) Uses of IPR and types of
  licensing
• 2005/2006 EPO Survey Motivations for patenting
  and proportion of patents in each category.
• 2003 OECD-BIAC Survey In and out-licensing
  strategies (100 Large MNE)
• 2002-2003 PATVAL Survey on the Uses Value of
  patents (patent/inventor basis)
• ? Various limitations (e.g. response rates,
  limited geographical coverage and comparability,
  representativity baises, etc.)
• ? Tangible need for international coordination

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9. Projects for Data Collection

• International Survey on the Economic Use and
  Impact of patents. Current partnership OECD-EPO,
  and possibly others..?
• To built-on previous expertise (e.g. JPO, EPO,
  LESI and OECD surveys)
• Largest geographical coverage broader
  population (including large, SMEs and start-ups).
• Gather detailed information on companies
  strategies in using and exploiting patents. E.g.
  items
• Purposes of using patents and their relative
  importance (strategic, financial, protection,
  etc.)
• Motivations/and types of licensing practices
  (in/out)
• Obstacles (e.g. infiringement, litigation,
  limited enforcement, etc.) as buyer or seller of
  technology
• Impact of Licensing strategies on value and
  diffusion