Implicit patent alliance acquiring the appropriability of innovation
by Yoshimasa Goto; Kiminori Gemba
International Journal of Technology Management (IJTM), Vol. 71, No. 3/4, 2016

Abstract: This paper proposes an innovation management scheme, an 'implicit patent alliance', to support the appropriability of innovation. A case study on inkjet printer companies is conducted to examine its potential effectiveness. In many markets, essential patents may not help patentees achieve dominance because products consist of many essential patents distributed among multiple companies. This distribution allows many companies to enter the market and limits the appropriability of innovation. A collection of essential patents and cross-licenses held, both formally and informally, by only a few companies among themselves could function as a virtual alliance. This 'implicit patent alliance' can occupy the licensing of essential patents and provide a basis for the appropriability of innovation. Three inkjet printer companies - Canon, Epson, and Hewlett-Packard - formed an implicit patent alliance and dominated the market.

Online publication date: Wed, 24-Aug-2016

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