Theories on Valuable Patent Portfolios (2):
- Mainly on Environmental Factors Affecting Patent Portfolio's Value -
II. The Patent Dispersion Effect
The Concept: Failure to protect market due to the dispersed ownership of necessary patents.
  • R&D Competition: R&D competition results in dispersion of technical solutions indispensable to manufacturing a product among competitors.
  • Patenting Competition: The dispersion of technical solutions ends up dispersion of patents among the competitors.
  • Failure in Market Protection: Dispersed patents weaken the market-protecting power of the porfolio, resulting in penetration of non-patented late entrants into the market.
Patent Dispersion Effect
[Patent Dispersion Effect]
Value Chain & Patent Concentration : Market Protection in View of Value Chain
1) The Concept of Value Chain
  • 'Value Chain' means a series of value-proliferating processes from input resource to value enjoyment of final customer of a product or a service.
  • Value-adding activities intervene in proper stages of the value chain to create products having higher value than the total sum of the input resources' value.
2) Value Chain and the Concentration of Required Patents
  • You can have enormous market-governing power if you can own all the necessary patents on technical solutions for one or more specific stages of a value chain in an industry. (i.e. Polariod in Instant Camera, HP in Inkjet Printer H/W, Qualcomm in CDMA, etc.)
  • That's why chemical or material patents seem to be so strong. Only one or a few patents can cover a whole stage of it's value chain.
[Go to top]