2. Holgersson, M. and Wallin, M. (2017) ‘The patent management trichotomy: Patenting, publishing, and secrecy’ Flashcards
(18 cards)
What are the three main strategies firms can use to manage intellectual property according to the patent management trichotomy?
Patenting, publishing, and secrecy.
What is the primary function of a patent?
o provide the right to exclude others from using, making, or selling an invention, thus enabling value appropriation and protecting freedom to operate (FTO).
What is “appropriation” in the context of innovation management?
The ability of firms to capture returns from investments in innovation, often through mechanisms like patents or trade secrets.
Define “freedom to operate” (FTO).
The ability to commercialize a product or service without infringing on others’ intellectual property rights.
How does publishing protect FTO?
By creating prior art that destroys the novelty requirement for patenting, thus preventing others from obtaining a patent.
Why are patenting and secrecy considered mutually exclusive strategies?
Because a patent requires public disclosure, while secrecy relies on keeping information confidential.
In which situations is secrecy a better strategy than patenting?
When the technology is difficult to reverse-engineer, and long-term confidentiality can be maintained.
What are direct appropriation advantages?
Benefits gained from exclusive use of an innovation, like higher margins or licensing revenue.
What are indirect appropriation advantages?
Benefits such as bargaining power in licensing negotiations, avoiding litigation, and enhancing reputation.
What is static FTO?
Freedom to operate based on current technologies.
What is dynamic FTO?
Freedom to operate based on future technological developments and iterations.
How does technological complexity influence strategy choice?
As complexity increases, patenting becomes more favorable due to indirect advantages like bargaining power and cross-licensing.
What is defensive publishing?
A strategy where firms publish technical details of an invention to block others from patenting it.
What are the drawbacks of patenting?
High costs, disclosure of sensitive information, and the risk of invent-around strategies by competitors.
Why might a firm choose publishing over patenting or secrecy?
To ensure FTO when the invention is not commercially critical or to contribute to an ecosystem of innovation.
What is the trade-off between patenting and secrecy?
Patents offer public protection and FTO but disclose information; secrecy avoids disclosure but doesn’t protect against independent invention or reverse engineering.
Can strategies be combined across inventions or time?
Yes, firms may use patenting for one module, secrecy for another, and publishing for yet another within the same product system.
How should IP strategies align with corporate strategies?
IP management should be integrated with business and technology strategies for maximum effectiveness.
