Theories on Valuable Patent Portfolios(1):
- Mainly on Environmental Factors Affecting Patent Portfolio's Value -
I. The Evolution of Market
Only commercial use, or market use, of patented technology is prehibited by the patent law. So, value of a patent is dependent on the usefulness of it's technology (patented invention) in the market. However, the market is not simply stable. It changes dynamically and unexpectedly.

The Concept: What is the Market?
  • A Base Line: Market is the place where customers show their needs and wants: "Market Requirements".
  • A Bad News: Things are changing. The market requirements are also changing, and the change is abrupt in timing and direction.
  • A Good News: However, it still has a recognizable pattern.
The Market Evolution: The Change of Market Requirements
  1. Introduction of a New Product into Market: Performance & Reliability Matter.
  2. Technical Development Causes further Enhacement in Performance & Reliability.
  3. Consumers Want Different Merits from the Product.
  4. Competitors Need Different Technologies to Deliver Different Merits.
    (Clayton M. Christensen, 1997, THE INNOVATOR'S DILEMMA: When New Technologies Cause Great Firms to Fail, Harvard Business School Press).
The Pattern: Modelling the Market Evolution
  • Performance & Reliability → Convenience → Indvidualization & Design → Low Price

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