Investigating Patent Value and Litigation Probability of Global Technology Standards

Abstract

Standard-essential patent (SEP) is a patent that claims an invention that must be used to comply with a technical standard. The issues of patent infringement are often at the forefront of the strategy and planning in patent litigation. Determining an appropriate methodology for valuing a patented invention is a complex and nuanced undertaking. This is particularly true for patent cases where the accused product or service includes many overlapping features and technologies. Patent information can be used in important issues of global technological standardization in order to evaluate the competitive potential of the SEP. This article makes two major contributions: First, it compares the patent value of SEPs with that of non-SEPs. According to the results, SEPs do have higher value, which indicates the effectiveness of the SEP system supported by standard setting organizations. Second, based on comprehensive observations of litigated SEPs, a model for predicting the probability of litigation is established and the litigation probability distribution of SEPs is plotted.