Holgersson, M. and Wallin, M. (2017) ‘The patent management trichotomy'

Question 1

Compare the options of patenting, secrecy, and publishing for an invention. What are the main differences in implications from the different options? [Answer very briefly]

Answer 1

The decision depends on:
- the degree to which the firm can appropriate value from the invention, and
- the degree to which it can operate freely

Publishing:
- Static FTO
- No appropriation

Secrecy:
- No FTO
- Direct appropriation

Patenting:
- Static and dynamic FTO
- Direct and indirect appropriation
- Preferable when technology is complex and/or cumulative
- Requires more time, money, and higher inventive step than publishing

Question 2

Describe the term freedom to operate (FTO).

Answer 2

FTO refers to whether a specific commercial activity can be undertaken without infringing on valid intellectual property rights (IPRs) held by others

Question 3

Value approproation is better acheived through _ and/or _ than _.

Answer 3

Value approproation is better acheived through patenting and/or secrecy than publishing.

Question 4

As technology complexity increases, value appropriation is better achieved through _ than _.

Answer 4

As technology complexity increases, value appropriation is better achieved through patenting than secrecy.

Question 5

What is dynamic vs. static FTO?

Answer 5

static: FTO based on current technologies

dynamic: FTO based on future developments and improvements of current technologies

Question 6

What is indirect vs. direct appropration advantage?

Answer 6

indirect appropriation: without direct link to sales and margins of the patented technology (e.g. patents to reach a strong position in industries where standards are important)

direct appropriation: sales of products, services, and licenses based on a specific technology

Question 7

FTO is better achieved through _ and/or _ than _.

Answer 7

FTO is better achieved through patenting and/or publishing than secrecy.

Question 8

As technological complexity increases (static) FTO is better achieved through _ than _ (and _).

Answer 8

As technological complexity increases (static) FTO is better achieved through patenting than publishing (and secrecy).

Question 9

As technological cumulativeness increases (dynamic) FTO is better achieved through _ than _ (and _).

Answer 9

As technological cumulativeness increases (dynamic) FTO is better achieved through patenting than publishing (and secrecy).

Question 10

What are two important functions of patents?

Answer 10

appropriation

FTO