Strategic Purpose of Software Patents: An Exploratory Study of German Organizations

Abstract

The growing importance of computer-related software patents awarded in the United States and around the world is a topic that continues to generate discussion. Given the global environment, the question of why organizations from one country seek patent protection from another country is of concern to both organizations and researchers. To better understand the strategic rationale motivating non-US firms to seek software patents in the US, an exploratory multi-case study involving three German firms was conducted. Results of this study suggest that, at a minimum, obtaining US software patents is a strategic necessity. Firms were also found to use software patents for protection against infringing activities, as well as providing a possible means for strengthening competitive advantage. We provide possible explanations for the patenting strategy of the firms in our study by employing a configuration approach using Miles and Snow's strategy topology. Recommendations for future research and integration with existing theories are also presented.