Patent Blocking and Infringement and their Effects on Firms? Participation in Markets for Technology

Christoph Grimpe, Katrin Hussinger

    Research output: Contribution to conferencePaperResearchpeer-review

    Abstract

    In recent years, firms have increasingly contributed to and been confronted with a patent landscape characterized by numerous but marginal inventions, overlapping claims and patent fences. As a result, firms risk to be blocked in their patent applications or to be infringed upon by rivals. While both aspects constitute major challenges for the appropriation of returns to inventive activity, extant literature suggests that participation in the market for technology might actually resolve or at least alleviate these problems. In this paper, we investigate the effect of patent blocking and infringement on firms’ engagement in in- and
    cross-licensing. Based on a sample of more than 1000 German manufacturing firms our results show that firms engage in in-licensing as a reaction to patent blocking and in both in- and cross-licensing if their protected IP was infringed upon. However, these effects vary depending on the fragmentation of technology fields and whether the firm operates in a discrete or complex product industry.
    Original languageEnglish
    Publication dateJun 2013
    Number of pages28
    Publication statusPublished - Jun 2013
    EventThe 35th DRUID Celebration Conference 2013: Innovation, Strategy and Entrepreneurship: Competitiveness and Dynamics of Organizations, Technologies, Systems and Geography - ESADE Business School, Ramon Llull University, Barcelona, Spain
    Duration: 17 Jun 201319 Jun 2013
    Conference number: 35
    http://druid8.sit.aau.dk/registrant/index/login/cid/13

    Conference

    ConferenceThe 35th DRUID Celebration Conference 2013: Innovation, Strategy and Entrepreneurship
    Number35
    LocationESADE Business School, Ramon Llull University
    CountrySpain
    CityBarcelona
    Period17/06/201319/06/2013
    OtherThe DRUID Society Conference 2013
    Internet address

    Cite this

    Grimpe, C., & Hussinger, K. (2013). Patent Blocking and Infringement and their Effects on Firms? Participation in Markets for Technology. Paper presented at The 35th DRUID Celebration Conference 2013: Innovation, Strategy and Entrepreneurship, Barcelona, Spain.
    Grimpe, Christoph ; Hussinger, Katrin. / Patent Blocking and Infringement and their Effects on Firms? Participation in Markets for Technology. Paper presented at The 35th DRUID Celebration Conference 2013: Innovation, Strategy and Entrepreneurship, Barcelona, Spain.28 p.
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    abstract = "In recent years, firms have increasingly contributed to and been confronted with a patent landscape characterized by numerous but marginal inventions, overlapping claims and patent fences. As a result, firms risk to be blocked in their patent applications or to be infringed upon by rivals. While both aspects constitute major challenges for the appropriation of returns to inventive activity, extant literature suggests that participation in the market for technology might actually resolve or at least alleviate these problems. In this paper, we investigate the effect of patent blocking and infringement on firms’ engagement in in- and cross-licensing. Based on a sample of more than 1000 German manufacturing firms our results show that firms engage in in-licensing as a reaction to patent blocking and in both in- and cross-licensing if their protected IP was infringed upon. However, these effects vary depending on the fragmentation of technology fields and whether the firm operates in a discrete or complex product industry.",
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    Grimpe, C & Hussinger, K 2013, 'Patent Blocking and Infringement and their Effects on Firms? Participation in Markets for Technology' Paper presented at, Barcelona, Spain, 17/06/2013 - 19/06/2013, .

    Patent Blocking and Infringement and their Effects on Firms? Participation in Markets for Technology. / Grimpe, Christoph; Hussinger, Katrin.

    2013. Paper presented at The 35th DRUID Celebration Conference 2013: Innovation, Strategy and Entrepreneurship, Barcelona, Spain.

    Research output: Contribution to conferencePaperResearchpeer-review

    TY - CONF

    T1 - Patent Blocking and Infringement and their Effects on Firms?

    T2 - Participation in Markets for Technology

    AU - Grimpe, Christoph

    AU - Hussinger, Katrin

    PY - 2013/6

    Y1 - 2013/6

    N2 - In recent years, firms have increasingly contributed to and been confronted with a patent landscape characterized by numerous but marginal inventions, overlapping claims and patent fences. As a result, firms risk to be blocked in their patent applications or to be infringed upon by rivals. While both aspects constitute major challenges for the appropriation of returns to inventive activity, extant literature suggests that participation in the market for technology might actually resolve or at least alleviate these problems. In this paper, we investigate the effect of patent blocking and infringement on firms’ engagement in in- and cross-licensing. Based on a sample of more than 1000 German manufacturing firms our results show that firms engage in in-licensing as a reaction to patent blocking and in both in- and cross-licensing if their protected IP was infringed upon. However, these effects vary depending on the fragmentation of technology fields and whether the firm operates in a discrete or complex product industry.

    AB - In recent years, firms have increasingly contributed to and been confronted with a patent landscape characterized by numerous but marginal inventions, overlapping claims and patent fences. As a result, firms risk to be blocked in their patent applications or to be infringed upon by rivals. While both aspects constitute major challenges for the appropriation of returns to inventive activity, extant literature suggests that participation in the market for technology might actually resolve or at least alleviate these problems. In this paper, we investigate the effect of patent blocking and infringement on firms’ engagement in in- and cross-licensing. Based on a sample of more than 1000 German manufacturing firms our results show that firms engage in in-licensing as a reaction to patent blocking and in both in- and cross-licensing if their protected IP was infringed upon. However, these effects vary depending on the fragmentation of technology fields and whether the firm operates in a discrete or complex product industry.

    KW - In-licensing

    KW - infringement

    KW - cross-licensing

    KW - blocking

    M3 - Paper

    ER -

    Grimpe C, Hussinger K. Patent Blocking and Infringement and their Effects on Firms? Participation in Markets for Technology. 2013. Paper presented at The 35th DRUID Celebration Conference 2013: Innovation, Strategy and Entrepreneurship, Barcelona, Spain.