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Theories on Valuable Patent Portfolios (2):
- Mainly on Environmental Factors Affecting Patent Portfolio's Value -
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| II. The Patent Dispersion Effect
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| • The Concept: Failure to protect market due to the dispersed ownership of necessary patents.
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- 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.
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[Patent Dispersion Effect] |
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| • Value Chain & Patent Concentration : Market Protection in View of Value Chain |
| 1) The Concept of Value Chain
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- '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.
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| 2) Value Chain and the Concentration of Required Patents
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- 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.
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