Acquisition Of Patents Research Articles

Problems and strategies to maintain the existence of domestic registered patents in Indonesia to promote the economic growth

AbstractThe number of acquisitions of Indonesian domestic patents is still low, while Article 130 letter d of Law Number 13 of 2016 concerning Patents regulates the abolition of patents due to the patent holder not fulfilling the obligation to pay the annual fee. This provision causes the loss of registered patent rights that have been hard to obtain, while the legal protection is still long, and there is still potential for commercialization value. It is feared that this will become one of the obstacles in the effort to increase the acquisition of domestic patents which in the end will also hamper Indonesia's economic growth. This article seeks to formulate the problems and strategies in maintaining the existence of domestically registered patents to be able to provide adequate protection for the exclusive rights of inventors while at the same time being able to support national economic growth.

Non-practicing entities in Europe: an empirical analysis of patent acquisitions at the European Patent Office

Abstract This paper delves into the proliferation of non-practicing entities (NPEs), a hot topic in academia and public policy, especially in the United States. The common belief is that Europe is less exposed to NPEs due to a robust patent system, higher enforcement costs, and smaller damage awards. Yet, using a new database of NPE patent applications at the European Patent Office (EPO), the study uncovers that NPEs activity in Europe is arising: they own nearly 20,000 EPO patents, primarily in Electrical Engineering. Moreover, we contribute the literature investigating the heterogeneity of the NPE business model and its relationship with the characteristics and use of the patents they target. Our econometric analysis provides threefold original evidence. First, NPEs with higher propensity for litigation (i.e., “Litigation” NPEs) acquire patents with higher infringement risk but similar technological quality than practicing entities. Second, patent aggregators (i.e., “Portfolio” NPEs) and technology companies (i.e., “Technology” NPEs) acquire higher-quality patents compared to those acquired by practicing entities. Third, patent acquisitions by “Litigation” NPEs and “Portfolio” NPEs reduce the subsequent use of protected technologies.

Does Investment Climate Matter for Firm Performance? Evidence from Kenyan Manufacturing Firms

The productivity of Kenyan manufacturing firms is way lower than that of many developed economies and has generally exhibited a consistent decline over the last decade. While this productivity trend has largely been attributed to the presence of a high distortionary institutional and business regulatory environment, existing studies on the role of the investment climate in determining firm performance are ostensibly scanty. This study, thus, employed the World Bank panel enterprise data for the period 2007-2013- 2018 in assessing whether investment climate mattered for firm performance in Kenyan manufacturing firms. More particularly, the study sought to establish the role of the court system and property rights ownership in determining firm performance; a feat that remains unexplored in the Kenyan context. The random effects model was estimated while controlling for the year, industry, and firm-specific control variables. The findings revealed that while court inefficiencies significantly impeded labor productivity, property rights ownership significantly increased productivity. Further, human capital positively determines labor productivity. Concerning governance and institutional factors, ISO-certified firms were found to be significantly more productive. Conversely, business licenses and permits constrain firm productivity. Therefore, to ensure unrelenting firm productivity, speedy and just delivery of court rulings on firm-related matters is critical. Secondly, the acquisition of patents relating to product or process innovation by firms enhances product competitiveness. Thirdly, manufacturing firms should invest more in human capital. Finally, the imposition of favorable business licenses and permits by the governments globally coupled with the ISO Certification requirement by firms is integral in optimizing labor productivity.

Patent assertion entities and follow-on innovation. Evidence from patent acquisitions at the USPTO

ABSTRACT Patent monetisation is an important source of revenues worldwide. This activity is increasingly carried out by patent assertion entities (PAE), which are at the origin of about 40% of infringement actions filed in the United States. This paper uses an original database of US patents reporting PAE patent acquisitions. We document two key empirical facts about the presence of PAEs in the market for patents. First, PAEs build large patent portfolios and contribute significantly to patent transfers in the US. Second, their impact on follow-on innovation is, on average, negative. With a series of dynamic diff-in-diffs analyses, we estimate a significant post-transfer drop in forward citations received by patents acquired by PAEs. This drop is not immediate but takes some years to materialise. Heterogeneity tests show that our results are driven by acquisitions of old and highly cited patents, as well as by patent acquisitions by large patent aggregators.

Cartel issues in plain sight

In some product markets suppliers interact with one another only as sellers of one product. In other product markets suppliers are linked beyond one particular product market. Collusion is likely to be more profitable, more stable, and more frequent when a set of collusion-minded firms are linked in various ways.1 Links can be forged by multi-product, multi-national firms in competition across product markets and geographic markets. Links can be forged by the acquisition, assertion, and licensing of patents.2 Links can be forged by professional firms that advise cartel members.3 And links can be forged with contracts that connect prices in one small aspect of a market to prices that impact much larger aspects of that market or even related markets.4 Even though these links can be in plain sight of cartel enforcers, they get insufficient attention. In this article, we explore market linkage and multi-market cartels and suggest reforms to enforcement practices that account for linkage.

Patent Acquisitions in the Healthcare Industry: An Analysis of Learning Mechanisms

The healthcare industry at large is used as a case study to suggest a methodological technique for evaluating patent citation networks to analyze cross-country creativity/knowledge flows. It intends to provide insight on the following research issues: (a) how to examine cross-national creative/learning flows; and (b) have nations with present patent owners profited from patent acquisitions? The research field at hand is currently under-explored, justifying the motivation for conducting this investigation, even though it has economic relevance in innovation patterns worldwide. The analysis of over 14,023 firms has shown that: (a) owners have acquired patents across borders, and (b) acquired patents (granted between 2013 and 2017) are cited by later patents (2018-2022). The methodology and findings are transferable to other industries. They can be used by managers and policymakers to (a) assist businesses in predicting innovation trajectories and (b) assist governments in designing and putting into action more effective policies that foster patented innovations in sectors that are deemed to be relevant to the national interest, thanks to the adoption of a new, complementary theoretical viewpoint that merges the micro- and macro-economic perspectives of citation flows.

Collective hold‐up

We consider dynamic processes of coalition formation in which a principal bargains sequentially with a group of agents. This problem is at the core of a variety of applications in economics, including lobbying, exclusive deals, and acquisition of complementary patents. In this context, we study how the allocation of bargaining power between principal and agents affects efficiency and welfare. We show that when the principal's willingness to pay is large relative to agents' payoffs for completion, efficiency requires concentrating bargaining power in the principal. Strengthening the bargaining position of the agents increases inefficient delay and reduces agents' welfare. This occurs in spite of the lack of informational asymmetries or discriminatory offers. When this collective action problem is severe enough, agents are better off when bargaining power is concentrated in the principal.

Evaluating the determinative factors driving patents and foreign technologies acquisitions in Visegrád countries

PurposeThis paper aims to empirically examine the factors driving the acquisition of patents and foreign technologies in 2,198 firms spanning multiple industries in Visegrád countries.Design/methodology/approachTo fulfil the research objectives, the authors used the binary logistic regression models for the empirical specifications to analyse the various hypotheses to ascertain the factors contributing to patents, foreign technologies and international quality certificate acquisitions in Visegrád countries.FindingsThe results show that technological innovations, in-house and external research and development, intense competition from the informal sector and external knowledge search positively influence firms to acquire patents, foreign technologies and international quality certificates. The study further showed that certain firm characteristics, such as size, having a board of directors, female top managers and top managers’ experience, positively influenced firms’ ability to obtain patents, foreign technologies and international quality certificates.Originality/valueThe authors provide new insights into understanding the factors contributing to international technological linkages in the context of transitional countries such as the Visegrád four group. The authors have shown that international technology linkages through foreign technology licences and international quality certifications are vital for innovations in transition economies.

Research on the Impact of Green Finance Policy on Regional Green Innovation-Based on Evidence From the Pilot Zones for Green Finance Reform and Innovation

To develop green finance and ensure the goal of carbon peaking and carbon neutrality, China set up the pilot zones for green finance reform and innovation in 2017. We empirically tested the policy effect of the pilot zones with data from 2010 to 2019 for prefecture-level cities in China. The study shows that the pilot zones have induced an effect on regional green technology innovation, reflected in the application and acquisition of both green invention patents and green utility patents, and the promotion effect is better for green utility patents than green invention patents, which is supported by the robustness test using PSM-DID. This study provides theoretical support and empirical evidence for evaluating the policy effects of the pilot zones and provides a reference for the differentiated formulation of green financial policies.

High growth episodes among R&D intensive firms: Evidence for Europe, US and Japan

The purpose of this article is three-fold: first, it tests whether inter-industry R&D spillovers are positively associated with the likelihood of experiencing high growth episodes among R&D intensive firms in Europe, US and Japan; second, it tests whether such a relationship is conditional on their level of absorptive capacity (ACAP); third, it tests whether the acquisition of foreign patents, an additional channel to access external knowledge, trigger high growth episodes among a sub-set of R&D intensive firms. For the empirical analysis, we focus on R&D intensive manufacturing firms observed between 2002 and 2017, located in Europe, US and Japan. The empirical findings support the hypotheses suggesting that: a) inter-industry R&D spillovers are associated with the likelihood of experiencing high growth episodes; b) ACAP conditions the relationship between inter-industry R&D spillovers and the likelihood of experiencing high growth episodes and c) shares of foreign patents are positively associated with the likelihood of experiencing high growth episodes among high-tech R&D intensive firms. JEL codes: C41, L25, O33.

What explains patenting behaviour during Britain’s Industrial Revolution?

A recent re-evaluation of patenting during the British Industrial Revolution argues patentees were responsive to demand-side conditions. This view does not consider supply-side factors, such as a patentee’s skill or access to financial resources, as an alternative mechanism. I exploit a rich dataset of patentee occupations to investigate the role a patentee’s economic or social background played in their patenting behaviour. I find skilled patentees were intensive users of the patent system and frequently patented more economically valuable inventions. I also find patent value mattered more than patentee skill for patent extension, which likely indicates the existence of financiers willing to back the acquisition of patents for valuable inventions. The composition of Britain’s patentees, and their use of the system, reasonably relates to the value of the inventions they sought to protect.

Cross-country learning from patents: an analysis of citations flows in innovation trajectories

This study proposes a methodological approach to investigate cross-country creativity/knowledge flows by analyzing patent citation networks, taking the aircraft, aviation and cosmonautics (AAC) industry as a case study. It aims at shedding some light on the following research questions: (a) how cross-country creative/learning flows can be investigated; (b) have countries of current patent owners benefited from patent acquisitions. In fact, despite the well-established economic interest for (analyzing and forecasting) innovation trajectories, this research area is still unexplored, thus, motivating the need for such study. Over 43,000,000 patents have been analyzed whereby: (a) owners have performed cross-country patent acquisitions; (b) acquired patents (granted within 2005–2009) are cited by subsequent patents (2010–2015). Methodology and results are scalable to other industries and can be exploited by managers and policy makers to: (a) help firms forecasting innovation trajectories; (b) support governments in designing/implementing measures nurturing patented innovations in industries deemed relevant to national interest.

Patent Box Regime: possibilities of implementation in the Russian practice of profit taxation

The subject of this research is the foreign experience of stimulating innovation activity of the companies via introduction of Patent Box Regime. The author underlines the importance of this mechanism as a measure for supporting the actors of the innovation economy on the stages of introducing innovations into production, and making profit from the efficient use of intellectual capital. The author analyzes the international statistics of acquisition of patents and key elements of preferential taxation of their income. Based on the collected material, the author examines the possibilities of implementation of such mechanism in the Russian practice. Special attention is given to the potential consequences of granting new incentives from the perspective of formation of the revenue part of the budgets of the budgetary system of the Russian Federation. The main result of this research consists in the development of a specific taxation regime for income from the use of intellectual property objects to be implemented in the Russian Federation. The author believes that the optimal mechanism is a deduction of up to 40% of qualified incomes from the corporate income tax base; at the same time, the incentive should not lead to the decrease of federal budget receipts. As sources of covering the shortfall in budget revenues of the constituent entities of the Russian Federation, the author considers the abolition of reduced tax rates for certain categories of taxpayers, as well as the extension of the limit on the transfer of loss, The conclusion is made on feasibility of implementation of Patent Box Regime in Russia considering foreign experience and domestic specificity of the country.

Is Biopharma Ready for the Standard Wars?

This symposium contribution sheds new light on Momenta v. Amphastar, a case in which issues relating to standardization and patent disclosure that have previously been observed in the semiconductor, computing, and telecommunications sectors found their way into a dispute between two biosimilar manufacturers. One such manufacturer, Momenta, participated in the development of a standard for testing the purity of generic enoxaparin under the auspices of the United States Pharmacopeial Convention but failed to disclose that it had applied for a patent on the testing method. When Momenta later sued Amphastar for patent infringement by using the method in accordance with the FDA’s approval of its own generic version of enoxaparin, Amphastar raised waiver and equitable estoppel as defenses, then brought antitrust claims against Momenta and its distribution partner Sandoz. Amphastar prevailed at the district court, obtaining a ruling that Momenta’s patent was unenforceable. This case demonstrates that issues surrounding the acquisition and disclosure of patents on standardized technologies have more salience in the biopharma sector than commonly believed. As such, standards organizations operating in this sector should ensure that their policies and procedures are robust enough to delineate clearly the obligations of participants with respect to patents covering standardized technologies, and organizations that participate in biopharma standards-development should heed the valuable lessons offered by more than three decades of litigation and policy making in the technology sector.

Cross-country creativity and knowledge flows of patent acquisitions: Drivers and implications for managers and policy-makers

Abstract This study aims at mining cross-country creativity/knowledge flows of patented blockchain applications – and their technological trajectories – through patent citation networks. It tests – through logit models – whether current patent owners have benefited from patent acquisitions from abroad (“learning-by-acquisition”). More than 50,000,000 patents granted within 2008–2018 were considered. Findings prove that: (a) cross-country patent acquisitions boost creativity and knowledge; (b) pros of cross-country learning are two-pronged: micro- and macro-economic ones; (c) both policy makers and managers should aim at acquiring patents from abroad depending on drivers like patent age and patent citations.

Litigating Monetization and Patent Trolls: Evidence from the Patent Market

Firms’ valuation of resources depends on their expected value appropriation from the resource. Being important resources, patents are used by firms to practice the technology and to exclude other firms from using the technology. However, the valuation of patents can be drastically different depending on the monetization method, especially when the firm has no interest in the product market. This paper studies patent assertion entities (PAEs) which are firms that use legal threats as the business model to monetize patents. The paper sheds light on various value appropriation mechanisms from patents by examining PAEs’ patent acquisitions in the market of technology. I theorize and show that patents with stronger but older technologies are more likely to be acquired by PAEs. Also, PAEs purchase patents with medium exclusion scope. Besides, I show the dependence of litigating monetization on the legal regime by exploiting the enactment of America Invents Act (AIA).

Gender Gap and Bias in the Acquisition and Enforcement of Patents

Broadening the base of players who contribute to innovation is the key to creating and expanding the innovation ecosystem. In an endeavor to increase the contribution of minorities in the IP field (e.g., startups, women inventors, and women entrepreneurs) to innovation, there is an urgent need to mitigate the invisible barriers and create an environment that allows them to demonstrate their capabilities. This paper focuses on women inventors and analyzes the challenges and countermeasures. Although the number of women in science and engineering fields and entrepreneurs is steadily increasing, the number of women inventors is not rising as much as it should be. As a background, it turns out that there is a persistent gender gap in the acquisition and enforcement of patent rights. To broaden women’s activities in the field of intellectual property (IP), the cooperation of men is essential, as opportunities for joint research between men and women are growing. This analysis is based on assumed gender because patent applications do not contain gender information. The advent of more accurate methods for guessing gender information in the IP field will enable more precise analysis.

ОПЫТ СОВЕРШЕНСТВОВАНИЯ ЭКОНОМИЧЕСКОЙ БЕЗОПАСНОСТИ ЯПОНИИ В ПЕРИОД 1950–1970-х гг. НА ОСНОВЕ ПОСТРОЕНИЯ НОВОЙ ЭФФЕКТИВНОЙ ЭКОНОМИЧЕСКОЙ МОДЕЛИ

The author chose as a subject of the research and analysis the causes and conditions that led to constructing a new Japanese economic model, which provided the annual growth in the country’s economy in the 1950-1970s. The goal was to find out what progressive movements in the economic sphere allowed the country to ensure high economic security of the state through the revival of the economic sector and to receive the status of the second world economy after the United States at the end of the last century. The study showed that in order to strengthen the economic security of the country, in accordance with the first “Five-Year Plan of Economic Independence” published in 1955, the Japanese government was primarily engaged in the reconstruction of existing production facilities, and only then began to create new ones. In addition, the state was engaged in the active acquisition of patents, technologies, and original inventions. Against the background of favorable external conditions, the economic growth that provided the highest labor productivity in the country, which in Japan was significantly higher than the global average rate, did not stop. The country quickly joined the world scientific and technological race and began to produce some of the most attractive and high-quality goods on the international market. As a result of the formed economic policy, Japan was able to enter the world market of goods and services, having a wide variety of products - from electrical goods to highly equipped cars and ships. The author’s vision of improving the economic security of Japan in the 1950-1970s based on the construction of a new effective economic model is a novelty. The practical significance of the study consists in the possibility of using Japanese experience for improving the economic security of the Russian Federation.

How does patent transfer affect innovation of firms?

The growth of the market for patents has drawn the attention of innovation management scholars and policymakers, especially regarding the impact this market may have on innovation. One of their prominent questions is whether firms exploit the market for patents to obtain strategic benefits over their market rivals rather than compete through the acquisition of technologies, which may aggravate ex-post patent holdup and increase the cost of innovation.This study examines how a firm's acquisition of external patents affects its rival firms’ innovation activity when a patent can be strategically utilized by the patent purchasing firm. Through our review of patent holdup literature and firms’ strategic utilization of patents, we derive a hypothesis stating that a firm's patent purchase deters its rival firm's development of relevant technologies to that patent if the patent covers crucial technological input for its rival's market operation.Our analysis uses Nortel's patent auction in 2011 and finds supportive evidence for the stated hypothesis. This paper discusses the differences between the nature of the market for patents from the market for technology and how we must incorporate such differences to formulate better innovation policies.

A deeper look at the collective intelligence phenomenon

For the upcoming conference on Intelligence Studies at ICI 2020 in Bad Nauheim, Germany the focus of this issue of JISIB is on collective intelligence and foresight. The first two papers by Søilen and Almedia and Lesca deal with collective intelligence from an intelligence studies perspective. It may be said that the Internet itself is a gigantic collective intelligence effort, the largest in human history. Open source is a prerequisite for this system to work for everyone. The article by Černý et al. is on open source. All other contributions are on the connection between the Internet, software and intelligence. This issue consists of seven articles to compensate for two articles that were taken out by editors in the last issue. The first article by Søilen entitled “Making sense of the collective intelligence field: a review” is a historical review of the field of collective intelligence. The paper shows how collective intelligence is an interdisciplinary field and argues there is a flaw in the notion of “wisdom of crowds”. Collective intelligence can be understood in terms of social systems theory and as such this approach has been fruitful for the social sciences, although so far not very popular. It also bares relevance for the study of business and economics. The second article by Almeida and Lesca is entitled “Collective intelligence process to interpret weak signals and early warnings”. Early warning and the detection of weak signals is a vital topic for any intelligence organization. Two aspects are discussed in the paper, the importance of new technology and collective sense making or interpretation The third article by Shaikh and Singhal entitled “Study on the various intellectual property management strategies used and implemented by ICT firms for business intelligence” deals with intellectual property rights and patenting strategies. The authors identify a number of defensive and offensive IP strategies applied to ICT companies. The results have a bearing on patent acquisitions. The fourth article by Lamrhari et al. is entitled “Web intelligence for understanding customer satisfaction: application of Latent Dirichlet Allocation (LDA) and the Kano model”. Customer satisfaction today is mostly measured with data from the internet, using different business intelligence techniques. The Kano model is still valuablei,ii, but the way we gather information to assess the different levels in the model has changed. The authors use Latent Dirichlet Allocation to analyze the voice of customer (VOC) in online reviews. They suggest that BI techniques and a fuzzy-Kano model can enable companies to better understand their customers’ online reviews. The fifth article by Nahili et al. is entitled “A new corpus-based convolutional neutral network for big data text analysis”. Companies need efficient ways to analyze everything that is said about them on the internet (reviews, comments). The paper suggests a convolutional neural network (CNN) as it has been successfully used for text classification. IMDB movie reviews and Reuters datasets were used for the experiment. The sixth article by Černý et al. is entitled “Using open data and google search data for competitive intelligence analysis”. Taking the Czech antidepressant market as an example, the authors show how competitive intelligence can be obtained using Google Search data, Google Trend and other OSINT sources. The seventh article by Dadkhah et al. is entitled “The potential of business intelligence tools for expert findings”. The paper suggests a way for researchers to find experts using business intelligence tools. The same method may also be used by any business or person looking for experts on a specific topic. As always, we would above all like to thank the authors for their contributions to this issue of JISIB. Thanks to Dr. Allison Perrigo for reviewing English grammar and helping with layout design for all articles and to the Swedish Research Council for continuous financial support. We hope to see you all at the ICI 2020 on the 16-17 March, 2020. The deadline for the two-page abstract submission is March 1st, 2020.