9. Ziegler, N., Gassmann, O., Friesike, S. (2014), Why do firms give away their patents for free.pdf Flashcards
(10 cards)
What are the four main reasons firms give away patents for free?
Firms release patents for profit making,
cost cutting,
innovation catalysing,
technology providing.
Example: IBM released 500 patents to the open-source community to stimulate innovation and strengthen its market position.
What does the ‘profit making’ motive involve in free patent release?
It involves releasing core patents to stimulate external innovation and increase profits through complementary products or services.
Example: Dolby gave away noise-reduction patents to boost sales of tape players using the technology.
How does the ‘cost cutting’ motive work in patent donation?
Firms donate non-core patents to reduce maintenance costs and gain tax benefits.
Example: DuPont donated patents to universities to save on upkeep and receive tax deductions.
What is meant by ‘innovation catalysing’ in the context of patent release?
It refers to donating non-core patents to stimulate innovation in areas outside the firm’s core business.
Example: Boeing donated a material patent to a university for potential use in medical implants.
What is the ‘technology providing’ motive for releasing patents?
Firms release core patents to serve societal needs, enhance reputation, or access other patents via pools.
Example: Syngenta contributed key patents to the Golden Rice project to support nutrition in developing countries.
What are non-commercial patent pools?
These are alliances where firms license patents royalty-free to promote shared innovation and social good.
Example: The Eco-Patent Commons shares environmentally beneficial patents to support green innovation.
What benefits do firms gain from donating patents to universities or non-profits?
They gain tax deductions, reduce maintenance costs, and foster innovation through academic collaboration.
Example: Shell donated patents to SRI International after shifting away from specialty chemicals.
How do firms use free patent release to build reputation?
By contributing to social causes or public health, firms enhance their image and gain goodwill.
Example: Boehringer Ingelheim licensed HIV drug patents for free to support treatment in Africa.
Why is releasing valuable non-core patents strategically important?
It prevents waste of useful technologies and allows others to develop them further.
Example: Procter & Gamble donated a promising drug patent to Vanderbilt University for continued research.
How does free patent release relate to open innovation?
It exemplifies the inside-out approach of open innovation, where firms share IP to gain indirect benefits.
Example: Sun Microsystems released Solaris OS patents to encourage community development and feedback.
