Entry and Patenting in the Software Industry

Cockburn, Iain M.; MacGarvie, Megan

doi:10.1287/mnsc.1110.1321

Cited by 122 publications

(42 citation statements)

References 42 publications

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“…Patent litigation actions are not only proactive to take the adversary to court, but also defend or file a countersuit. They indicate the complexity of patent litigation in which disputants often play the double role of both plaintiff and defendant (Cockburn and MacGarvie 2011).…”

Section: Patent Litigation Strategy and Tacticsmentioning

confidence: 99%

Patent Litigation Strategy and Its Effects on the Firm

Yang

2019

Int J Management Reviews

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Patent litigation has attracted scholarly attention to reconcile multiple views for new research. Accordingly, this paper addresses patent litigation strategy and its effect on the firm. Based on 106 papers and articles, six books, the author's logic and practice impressions, it first defines patent litigation strategy and differentiates similar concepts. Second, based on the process, the author fine‐tunes patent litigation strategy into three tactics: threat, filing and verdict. Then, she categorizes and examines the impact of patent litigation on market value, monetary gain/loss and strategic collaboration. The findings show that the effect on the market value is more complex and ambiguous than anticipated, and sometimes contradictory. The analysis shows the consistency of monetary effect in practice, that firms tend to have higher monetary gains from private settlement than from legal awards. It also demonstrates that existing studies lag behind reality in investigating the detailed role of patent litigation on strategic collaboration from partnership (e.g. licensing and strategic alliance) to takeover (i.e. merger and acquisition). Finally, the author reflects on the findings, and maps out critical paths toward new research. This process also reveals that stakeholders, industrial settings and country environments moderate the studied relationship. This paper contributes to knowledge and practice: appreciates the interdisciplinary endeavors to draw the findings; categorizes patent litigation and its effect; and critiques prior studies on the relationship to integrate knowledge for future research.

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Section: Patent Litigation Strategy and Tacticsmentioning

confidence: 99%

Patent Litigation Strategy and Its Effects on the Firm

Yang

2019

Int J Management Reviews

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“…Knowing when inventors are less forthcoming about known relevant prior art has implications for public policy as well. Granting patents whose novelty has been incorrectly assessed can lead to wasteful litigation (Allison and Lemley, 1998), a proliferation of patenting for the sole purpose of deterring litigation (Hall and Ziedonis, 2001), and reduced overall investment in R&D (Cockburn and MacGarvie, 2006). If inventors and their firms are granted levels of exclusivity beyond what is warranted, competing firms may be deterred from devising socially beneficial inventions.…”

Section: Implications Limitations and Future Researchmentioning

confidence: 99%

The quest for expansive intellectual property rights and the failure to disclose known relevant prior art

Steensma

Chari

Heidl

2014

Strategic Management Journal

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“…I n the intellectual property (IP) management literature, patenting knowledge has been identified as an important strategic action for a wide variety of reasons. A first purpose of patenting is commercializing new knowledge without being hindered by imitators (Cockburn and MacGarvie, 2009). Second, firms can patent for more "strategic" purposes.…”

Section: Introductionmentioning

confidence: 99%

Patenting Activities and Firm Performance: Does Firm Size Matter?

Andries¹,

Faems²

2013

J of Product Innov Manag

126

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Whereas prior research has provided valuable insights into the willingness of small and medium‐sized enterprises (SMEs) and large firms to engage in patenting, a comparison of the performance implications of patenting activities across small and large firms is still lacking. This gap is important because SMEs and large firms, having different resources and capabilities, might benefit from patenting activities in different ways. In particular, SMEs can be expected to benefit less from patenting activities in terms of protection against imitators than large firms. On the other hand, the propensity and ability of SMEs to license out their patents and generate additional revenue streams might be relatively higher than that of their large counterparts. This paper studies the impact of patenting on licensing, innovation, and financial performance for both SMEs and large firms, using multiple‐group path analyses on a sample of 358 manufacturing firms. Contrary to expectations, this study demonstrates that not only large firms, but also SMEs benefit from patenting in terms of commercializing product innovations. Moreover, for both SMEs and large firms, such increased innovation performance in turn contributes to higher profit margins. Patenting activities also increase the ability of SMEs and large firms to license out knowledge to external parties, and this positive effect is significantly stronger for large firms. However, neither in SMEs nor in large firms, these outward licensing activities generate short‐term financial benefits. Finally, the study demonstrates that patenting activities do not trigger significant cost disadvantages for either SMEs or large firms. Jointly, these findings provide unique insights in the value‐generating and cost‐increasing effects of patenting, suggesting that not only large firms, but also SMEs should consider patenting as a viable strategy to fully reap commercial benefits from their innovation activities. At the same time, they temper open innovation scholars’ expectations regarding the financial benefits of licensing out knowledge. Overall, these findings point to opportunities for optimizing the intellectual property management of both SMEs and large firms.

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Entry and Patenting in the Software Industry

Cited by 122 publications

References 42 publications

Patent Litigation Strategy and Its Effects on the Firm

Patent Litigation Strategy and Its Effects on the Firm

The quest for expansive intellectual property rights and the failure to disclose known relevant prior art

Patenting Activities and Firm Performance: Does Firm Size Matter?

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