Factors influencing patenting in small computer software producing companies

Abstract

A model describing some of the factors that influence company patenting is presented. It can be used to help define and implement company patent strategy as well as to address specific issues such as considerations when initiating patent activities, evaluation of patent work and measures to be taken to alleviate shortcomings in patenting efforts. The model is primarily based on previously known factors. Sub-components of the model can be used to describe the need and ability of a company to patent. Data on patents as a competitive means are presented. The model is illustrated by applying it to a small selection of computer software producing companies employing between five and thirty persons. The empirical base consists of interviews and patent searches. A key result explaining the low patenting intensity in this sample of small computer software producing companies is that even though they seem to have relatively good formal patent knowledge, strategic patent knowledge is limited. A surprising finding was that the high costs normally associated with patenting were not considered a major problem among these companies.