Click here to download

Extracting value from ipr through patent brokerage
Author/s: Mario F. Benassi, Gidion T. Geenen 
Year:  2013 Issue: Language: English 
Pages:  28 Pg. 89-116 FullText PDF:  156 KB
DOI:  10.3280/POLI2013-004004
(DOI is like a bar code for intellectual property: to have more infomation:  clicca qui   and here 

We investigate the role of patent brokers in creating and extracting value from patents. Based on theoretical discussions, distinctive patent market conditions are associated with specific benefits of patent brokers. We provide a conceptual model to frame the role of patent brokers. We identify patent market dimensions that are likely to affect broker selection and argue why companies should carefully select patent brokers. We conclude with an outline of implications and suggestions for empirical research design in this field.
Keywords: Innovation, patent management, value extraction, governance modes, brokerage
Jel Code: M10, O34

  1. Amable B., Chatelain J.B., Ralf K. 2010. Patents as collateral. Journal of Economics Dynamics and Control, 34 (6): 1092-1104,, DOI: 10.1016/j.jedc.2010.03.004
  2. Anton J. J., Greene H., Yao D.A. 2006. Policy implications of weak patent rights. Innovation Policy and the Economy, 6: 1-26.
  3. Arora A., Merges R.P. 2001. Property rights, firm boundaries and R&D inputs. SSRN Working Paper Series 255869,, DOI: 10.2139/ssrn.255869
  4. Arora A., Fosfuri A., Gambardella A. 2002. Markets for technology. The economics of Innovation and Corporate Strategy. MIT Press: Cambridge (Mass.).
  5. Arora A., Belenzon S., Rios L. 2010. The organization of R&D in American corporations: the determinants and consequences of decentralization. NBER Working Paper 17013.
  6. Atuahene-Gima K., Patterson P.G. 1992. The impact of managerial attitudes on technology licensing performance. European Journal of Marketing, 26 (3): 52-63,, DOI: 10.1108/EUM0000000000640
  7. Bailey J., Bakos Y. 1997. An exploratory study of the emerging role of electronic intermediaries. International Journal of Electronic Commerce, 1 (3): 7-20.
  8. Benassi M. 2013. La gestione dei brevetti. Cedam: Padova.
  9. Benassi M., Di Minin A. 2009. Playing in between: patents’ brokers in markets for technology. R&D Management Journal, 39 (1): 68-86,, DOI: 10.1111/j.1467-9310.2008.00537.x
  10. Benassi M., D’Angelo A., Geenen G. 2012. IP intermediaries in Europe: a web content analysis. Industry and Innovation, 19 (4): 307-325,, DOI: 10.1080/13662716.2012.694677
  11. Bessant J., Rush H. 1995. Building bridges for innovation: the role of consultants in technology transfer. Research Policy, 24 (1): 97-114,, DOI: 10.1016/0048-7333(93)00751-E
  12. Bessen J. 2008. The value of US patents by owner of patent characteristics. Research Policy, 37 (5): 932-945,, DOI: 10.1016/j.respol.2008.02.005
  13. Bessen J., Meurer M.J. 2009. Patent Failure: How Judges, Bureaucrats, and Lawyers Put Innovators at Risk. Princeton University Press: Princeton.
  14. Bowman C., Ambrosini V. 2000. Value creation versus value capture: towards a coherent definition of value in strategy. British Journal of Management, 11 (1): 1-15,, DOI: 10.1111/1467-8551.00147
  15. Burk D.L., Lemley M.A. 2009. The Patent Crisis and How the Courts Can Solve It. University of Chicago Press: Chicago,, DOI: 10.7208/chicago/9780226080635.001.0001
  16. Burt R.S. 1992a. The social structure of competition, in Nohria N., Eccles R.G. (eds.) Networks and Organizations: Structure, Form and Action. Harvard Business Press: Boston.
  17. Burt R.S. 1992b. Structural Holes: The Social Structure of Competition. Harvard University: Cambridge (Mass.).
  18. Burt R.S. 2005. Brokerage and Closure. Oxford University Press: New York.
  19. Calderini M., Odasso M.C. 2008. Intellectual property portfolio securitization: an evidence based analysis. IS Working Paper 1.
  20. Chesbrough H. 2003. Open Innovation. Harvard Business School Press: Cambridge (Mass.).
  21. Chesbrough H. 2006. Emerging Secondary Markets for Intellectual Property: US and Japan Comparison. Research Report to NCIPI, published online.
  22. Cockburn I.M., MacGarvie M.J., Müller E. 2010. Patent thickets, licensing and innovative performance. Industrial and Corporate Change, 19 (3): 899-925,, DOI: 10.1093/icc/dtq035
  23. Cohen W.M., Nelson R.R., Walsh J.P. 2000. Protecting their intellectual assets: appropriability conditions and why US manufacturing firm patent (or not). NBER Working Paper 7522.
  24. Conti R., Gambardella A., Novelli E. 2013. Research on markets for inventions and implications for R&D allocation strategies. Academy of Management Annals, 7 (1): 715-772,, DOI: 10.1080/19416520.2013.787709
  25. Dushnitsky G., Klueter T. 2011. Is there an eBay for ideas? Insights from online knowledge marketplaces. European Management Review, 8 (1): 17-32,, DOI: 10.1111/j.1740-4762.2010.01002.x
  26. Edwards D. 2001. Patent Backed Securitization: Blueprint for a New Asset Class. Gerling NCM Credit Insurance, published online.
  27. Fischer T., Henkel J. 2009. Patent trolls on markets for technology. An empirical analysis of trolls’ patent acquisitions. SSRN Working Paper Series 1523102.
  28. Gallini N. 2011. Private agreements for coordinating patent rights: the case of patent pools. Economia e Politica Industriale, 38 (3): 5-30,, DOI: 10.3280/POLI2011-003001
  29. Gambardella A., Giarratana M.S. 2006. Innovations for products, innovations for licensing: patents and downstream assets in the software security industry. SSRN Working Paper Series 935210.
  30. Gambardella A., Giuri P., Luzzi A. 2007. The market for patents in Europe. Research Policy, 36 (8): 1163-1183,, DOI: 10.1016/j.respol.2007.07.006
  31. Gambardella A., Giuri P., Torrisi S. 2013. Markets for technology, in Dodgson M., Gann D., Phillips N. (eds.) The Handbook of Innovation Management. Oxford University Press: Oxford (UK).
  32. Gans J.S., Stern S. 2010. Is there a market for ideas?. Industrial and Corporate Change, 19 (3): 805-837,, DOI: 10.1093/icc/dtq023
  33. Gassman O., Reepmeyer G. 2005. Organizing pharmaceutical innovation: from science-based knowledge creators to drug-oriented knowledge brokers. Creativity and Innovation Management, 14 (3): 233-245,, DOI: 10.1111/j.1467-8691.2005.00344.x
  34. Grindley P., Teece D. 1997. Managing intellectual capital: licensing and cross licensing in semiconductor and electronics. California Management Review, 39 (2): 8-41,, DOI: 10.2307/41165885
  35. Guellec D., Madiès T., Prager J.P. 2010. Les marchés de brevets dans l’économie de la connaissance. Direction de l’Information Légale et Administrative: Paris.
  36. Hagiu A., Yoffie D. 2013. The new patent intermediaries: platforms, defensive aggregators, and super-aggregators. Journal of Economic Perspectives, 27 (1): 45-66,, DOI: 10.1257/jep.27.1.45
  37. Hall B.H., Jaffe A.B., Trajtenberg M. 2005. Market value and patent citations. RAND Journal of Economics, 36 (1): 16-38.
  38. Hargadon A.B. 1998. Firms as knowledge brokers: lessons in pursuing continuous innovation. California Management Review, 40 (3): 209-227,, DOI: 10.2307/41165951
  39. Hargadon A.B. 2002. Brokering knowledge: linking learning and innovation. Research in Organizational Behavior, 24 (4): 41-85,, DOI: 10.1016/S0191-3085(02)24003-4
  40. Hargadon A.B., Sutton R.I. 1997. Technology brokering and innovation in a product development firm. Administrative Science Quarterly, 42 (4): 716-749,, DOI: 10.2307/2393655
  41. Henderson R., Cockburn I. 1994. Measuring competence? Exploring firm effects in pharmaceutical research. Strategic Management Journal, 15 (Issue Supplement S1): 63-84.
  42. Hillery J.S. 2004. Securitization of Intellectual Property: Recent Trends from the United States. The Washington Core Institute, published online.
  43. Hu X., Rousseau R. 2012. A new approach for measuring the value of patents based on structural indicators for ego patent citation networks. Journal of the American Society for Information Science and Technology, 63 (9): 1834-1842,, DOI: 10.1002/asi.22632
  44. Jacobides M.G., Knudsen T., Augier M. 2006. Benefiting from innovation: value creation, value appropriation and the role of industry architectures. Research Policy, 35 (8): 1200-1221,, DOI: 10.1016/j.respol.2006.09.005
  45. Kim Y.J., Vonortas N.S. 2006. Technology licensing partners. Journal of Economics and Business, 58 (4): 273-289,, DOI: 10.1016/j.jeconbus.2005.10.004
  46. Kollmer H., Dowling M. 2004. Licensing as a commercialization strategy for new technology-based firms. Research Policy, 33 (8): 1141-1151,, DOI: 10.1016/j.respol.2004.04.005
  47. Kossovsky N., Brandegee B., Giordan J.C. 2004. Using the market to determine IP’s fair market value. Research-Technology Management, 47 (3): 33-42.
  48. Lamoreaux N.R., Sokoloff N.R. 2002. Intermediaries in the US market for technology. NBER Working Paper 9017.
  49. Lemley M.A., Myhrvold N. 2008. How to make a patent market. Hoffstra Law Review, 36 (2): 257.
  50. Lepak D., Smith K., Taylor M.S. 2007. Value creation and value capture: a multilevel perspective. Academy of Management Review, 32 (1): 180-194,, DOI: 10.5465/AMR.2007.23464011
  51. Lerner J., Tirole J. 2002. Efficient patent pools. American Economic Review, 94 (3): 691-711,, DOI: 10.1257/0002828041464641
  52. McClure I.D. 2011. The value of IP as a commodity. IAM Magazine, 47 (1): 29-37.
  53. Mendonca S. 2005. Large innovative firms and patent management: challenges for SME’s managers and IP officials in catching-up economies. Journal of Intellectual Property Rights, 10 (4): 281-286.
  54. Monk A. 2009. The emerging market for intellectual property: drivers, restrainers and implications. Journal of Economic Geography, 9 (4): 469-491,, DOI: 10.1093/jeg/lbp003
  55. Motohashi K. 2008. Licensing or not licensing? An empirical analysis of the strategic use of patents by Japanese firms. Research Policy, 37 (9): 1548-1555,, DOI: 10.1016/j.respol.2007.12.014
  56. Naone E. 2009. Philips iPill. A Tiny Device Delivers Drugs Exactly Where They’re Needed, published online.
  57. OECD. 2004. Patents and Innovation: Trends and Policy Challenges. OECD: Paris.
  58. Parmigiani A. 2007. Why do firms both make and buy? Strategic Management Journal, 28 (3): 285-311,, DOI: 10.1002/smj.580
  59. Parr R. 2007. Royalty Rates for Licensing Intellectual Property. John Wiley and Sons: New York.
  60. Patel D., Ward M.R. 2011. Using patent citation patterns to infer innovation market competition. Research Policy, 40 (6): 886-894,, DOI: 10.1016/j.respol.2011.03.006
  61. Raysman R., Brown P. 2005. Patent cross-licensing in the computer and software industry. New York Law Journal, 233 (7).
  62. Reiffenstein T. 2009. Specialization, centralization, and the distribution of patent intermediaries in the USA and Japan. Regional Studies, 43 (4): 571-588,, DOI: 10.1080/00343400701874255
  63. Reilly R.F., Schweihs R.P. 2004. The Handbook of Business Valuation and Intellectual Property Analysis. McGraw-Hill: New York.
  64. Reitzig M., Henkel J., Heat C. 2006. On sharks, trolls, and their patent prey. Unrealistic damage awards and firms’ strategies of ‘being infringed’. Research Policy, 36 (1): 134-154,, DOI: 10.1016/j.respol.2006.10.003
  65. Rivette K.G., Kline D. 2000. Rembrandts in the Attic: Unlocking the Hidden Value of Patents. Harvard Business School Press: Cambridge (Mass.).
  66. Roth A.E., 2008. What have we learned from market design? Economic Journal, 118 (527): 285-310,, DOI: 10.1111/j.1468-0297.2007.02121.x
  67. Rubistein A., Wolinsky A. 1987. Middlemen. The Quarterly Journal of Economics, 102 (3): 581-593,, DOI: 10.2307/1884218
  68. Ryall M.D., Sorenson O. 2007. Brokers and competitive advantage. Management Science, 53 (4): 566-583,, DOI: 10.1287/mnsc.1060.0675
  69. Serrano C.J. 2010. The dynamics of the transfer and renewal of patents. The RAND Journal of Economics, 41 (4): 686-708,, DOI: 10.1111/j.1756-2171.2010.00117.x
  70. Svensson R. 2007. Commercialization of patents and external financing during the R&D phase. Research Policy, 36 (7): 1052-1069,, DOI: 10.1016/j.respol.2007.04.004
  71. Swan J., Goussevskaia A., Newell S., Robertson M., Bresnen M., Obembe A. 2007. Modes of organizing biomedical innovation in the UK and US and the role of integrative and relational capabilities. Research Policy, 36 (4): 529-547,, DOI: 10.1016/j.respol.2007.02.014
  72. Tansey R., Neal M., Carroll R. 2005. Get rich or die trying: lessons from Rambus’ high-risk predatory litigation in the semiconductor industry. Industry and Innovation, 12 (1): 93-115,, DOI: 10.1080/1366271042000339076
  73. Teece D.J. 1986. Profiting from technological innovation. Research Policy, 15 (6): 285-305,, DOI: 10.1016/0048-7333(86)90027-2
  74. Teece D.J. 1998. Capturing value from knowledge assets. California Management Review, 40 (3): 55-79,, DOI: 10.2307/41165943
  75. Teece D.J. 2005. Technological know-how, property rights and enterprise boundaries: the contribution of Arora and Merges. Industrial and Corporate Change, 14 (6): 1237-1240,, DOI: 10.1093/icc/dth084
  76. Tushman M.L. 1977. Special boundary roles in the innovation process. Administrative Science Quarterly, 22 (4): 587-605,, DOI: 10.2307/2392402
  77. US Justice Department. 2013. Justice Department Issues Business Review Letter to Intellectual Property Exchange International, published online.
  78. USPTO. 2005. General Information Concerning Patents: Assignments and Licenses, published online.
  79. Van Triest S., Vis W. 2007. Valuing patents on cost-reducing technology: a case study. International Journal on Production Economics, 105 (1): 282-292,, DOI: 10.1016/j.ijpe.2006.04.019
  80. Verona G., Prandelli E., Sawhney M. 2006. Innovation and virtual environments: towards virtual knowledge brokers. Organization Studies, 27 (6): 765-788,, DOI: 10.1177/0170840606061073
  81. Wang A.A. 2010. Rise of patent intermediaries. Berkeley Technology of Law Journal, 25 (1): 158-200.
  82. Williamson O.E. 1975. Markets and Hierarchies, Analysis and Antitrust Implications, a Study in the Economics of Internal Organization. Free Press: New York.
  83. Williamson O.E. 1979. The governance of contractual relations. Journal of Law and Economics, 22 (2): 233-261,, DOI: 10.1086/466942
  84. Williamson O.E. 1985. The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting. Free Press: New York.
  85. Winch G., Courtney R. 2007. The organization of innovation brokers: an international review. Technology Analysis and Strategic Management, 19 (6): 747-763,, DOI: 10.1080/09537320701711223
  86. Yanagisawa T., Guellec D. 2009. The emerging patent market place. OECD Science, Technology and Industry Working Papers 099.
  87. Yeh B.T. 2012. An Overview of the ‘Patent Troll’ Debate. CRS Report for Congress. Washington Congressional Research Service.
  88. Ziedonis R.H. 2004. Don’t fence me in: fragmented markets for technology and the patent acquisition strategies of firms. Management Science, 50 (6): 820-840,, DOI: 10.1287/mnsc.1040.0208
  89. Zuniga M.P., Guellec D. 2009. Who licenses out patents and why? Lessons from a business survey. STI Working Paper 2009/5.

Mario F. Benassi, Gidion T. Geenen, in "ECONOMIA E POLITICA INDUSTRIALE " 4/2013, pp. 89-116, DOI:10.3280/POLI2013-004004


FrancoAngeli is a member of Publishers International Linking Association a not for profit orgasnization wich runs the CrossRef service, enabing links to and from online scholarly content