Strategic Use of Patents

Strategic Use of patents

An overview

Pénin Julien BETA – Université de Strasbourg penin@cournot.u-strasbg.fr

DIMETIC Lecture April, 2009

How to valorise a patent (once you get one)? 1) Offensive strategy: to protect a monopoly (exclusion) 2) Market strategy: to trade technologies 3) Defensive strategy: cross-licensing 4) Reputation strategy: to certify and signal competences 5) Partnership strategy: to collaborate 6) Open strategy: to diffuse or free technologies

Others: Blocking strategy, internal strategy (patent to manage employees), etc.

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A wide spectrum of use

Enable appropriation Prevent appropriation

Strict appropriation Ex: pharmaceuticals

Bargaining chips Ex: electronics

Control the diffusion of the innovation Ex: network industries

Grant licences more or less exclusive Ex: chemicals

Reputation, image, signalling

Free technologies Ex: biotech RT

Many different possible role for a patent

Sectoral specificities

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Patents: practical details (1)

 A patent provides a monopoly over a technical invention on a given territory and for a maximum of 20 years (after the first application) (TRIPs agreement)  A patent is a right to exclude (not to use)

 Prevent others from producing, selling and using the invention

 To be patentable, an invention must be new, nonobvious and must have an industrial application  Application must be addressed to patent offices (EPO, USPTO, OMPI), which examine them.  No European or world patent (only centralized procedures, PCT)

 Priority rule

 18 months after the application, a description of the invention is disclosed (secrecy is broken)

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Patents: practical details (2)

Two main patent systems: USA / rest of the world

USA

First to invent 1 year grace period Usefulness criteria Moral obligation to patent No publication obligation Disclose the « Best way » Reexamination No first user right Geographic homogeneity

Europe (ROW)

First to file Invention must be new...