Session 101

Strategic Patenting

Track I

Date: Tuesday, October 6, 2015


Time: 11:00 – 12:15

Common Ground

Room: Governor's Square 16


  • Tony Tong, University of Colorado-Boulder

Title: Interfirm Knowledge Flows as a Consequence of Patent Litigation: Learning and (or) Strategic Citation?


  • Elisa Operti, ESSEC Business School
  • Ha Hoang, ESSEC Business School

Abstract: This study extends our understanding of how the patent management process facilitates inter-firm knowledge flows. We examine the link between patent litigation events and its impact on litigating firms’ relative absorptive capacity thereby enhancing their subsequent knowledge flows. Using a matched pair research design, we find evidence to support our prediction that litigation influences subsequent patent citations to counterparty knowledge. In our analyses, we account for changes in patent citation behavior that are due to strategic considerations as firms seek to bolster their technological position vis-a-vis their counterparty.

Title: Navigating around IP Landmines: Exploring Firms’ Use of Defensive IP Strategies


  • Jiyoon Chung, University of Illinois at Urbana-Champaign
  • Deepak Somaya, University of Illinois at Urbana-Champaign
  • Annika Lorenz, Hasselt University

Abstract: Intellectual property (IP) rights have become an important strategic battleground, in which firms increasingly seek to build up positions that create imitation barriers for their technology. Thus, navigating around the IP rights held by others is a strategic imperative, which in turn necessitates the deployment of effective defensive IP strategies. However, we know relatively little about the different defensive IP strategies used by firms and the factors that drive the use of these strategies. Taking an exploratory approach with a detailed economy-wide dataset for Germany, we find that firm-level drivers differentially impact the use of each of eight possible types of defensive IP strategies, as well as the need for these strategies. Further, we find that the uses of these strategies are interrelated in important ways.

Title: Patent Strategies: Traditional, Proprietary and Defensive


  • Riccardo Cappelli, University of Bologna
  • Marco Corsino, University of Bologna
  • Salvatore Torrisi, University of Bologna

Abstract: The increasing importance of patents for firm strategy goes beyond the protection of inventions from imitation (traditional strategy). Patenting can generate rents by blocking the commercial endeavor of rivals (proprietary strategy) or avoiding the risk of being held-up by other patent owners (defensive strategy). Using PATVAL survey data on inventors, this paper empirically investigates how the choice of patent strategy varies with the characteristics of patent owners and the technological environment where patents originate. The results of multinomial logit estimates point out interesting differences across various patent strategies, which help better understand the strategic use of intellectual property assets in firms.

Title: Reputation for Toughness and Patent Litigation Outcomes: Effects of Differential Roles and Embeddedness


  • Hyunsun Kim, University of Illinois-Urbana Champaign
  • E Geoffrey Love, University of Illinois at Urbana-Champaign

Abstract: This paper extends research on the consequences of “reputations for toughness” in competitive interactions, by integrating social factors that have been often overlooked in the game-theoretic representations. We test our hypotheses with the data on patent litigation in the computer and pharmaceutical industries from 1988 to 2012. A key juncture in patent litigation is that of settlement versus going to trial. Our finding indicates that the plaintiffs’ reputation for toughness tends to push litigation toward more trials. Contrarily, when a litigious firm takes a role de defendant, the litigation would be more likely to settle. Final key finding suggests that that the effect of plaintiff’s reputation would be stronger in “systems-product” industry, rather than in more featured markets.

Title: The Influence of Patent Assertion Entities on the Locus and Quality of Invention


  • Mukund Chari, University of Washington
  • Kevin Steensma, University of Washington
  • Ralph Heidl, University of Oregon

Abstract: Patent assertion entities (PAEs), often referred to as trolls, act as intermediaries by purchasing patents from inventors and licensing the rights to those who commercialize products. We consider how PAE intermediation influences patenting rates and patent quality of two sectors of entities. We propose that greater PAE intermediation will increase the quantity of patents from the sector of entities with relatively limited commercialization capabilities (i.e., independent inventors, small firms, research institutions). However the quality of these patents in terms of providing a foundation for subsequent invention will diminish. In contrast, greater PAE intermediation will decrease the quantity of patents from the sector of relatively larger firms that typically have substantial commercialization capabilities, but the patents will be of a higher quality.

Title: What Determines the Duration of Patent Examination in China? Evidence from the Population of Invention Patent Applications at the SIPO


  • Kun Zhang, University of Colorado-Boulder
  • Tony Tong, University of Colorado-Boulder
  • Zi-Lin He, Tilburg University

Abstract: This study presents new evidence on the determinants of the duration and outcomes of patent examination at the State Intellectual Property Office of China by using a rich dataset including the population of 1,092,694 invention patent applications filed during 1993-2006. We model all three competing outcomes of patent examination—grant, withdrawal, and refusal—simultaneously, addressing selection issues often neglected in prior work. The survival time is regressed on a set of applicant characteristics and patent-level characteristics. We find strong evidence that certain proxies for patent value and the complexity of the examination task have differential effects on the duration for different examination outcomes, highlighting the importance of using fine-grained data to model alternative outcomes in research on patent examination processes at patent offices.

All Sessions in Track I...

Sun: 08:00 – 09:15
Session 276: K&I Sunday Panel: Big Data & Analytics in Strategy
Sun: 09:45 – 11:00
Session 277: K&I Foundations Session: A Conversation with Dan Levinthal
Sun: 11:15 – 12:30
Session 278: K&I Sunday Panel: Knowledge and Innovation in models of Business Models
Sun: 16:15 – 17:30
Session 104: Resource Allocation and Innovation
Session 261: Knowledge Creation and Sharing in Virtual Communities
Sun: 17:45 – 00:00
Session 317: Knowledge and Innovation Business Meeting
Mon: 08:00 – 09:15
Session 62: Multi-level perspectives on capability development
Session 105: Sourcing Strategies for Knowledge
Session 256: Innovation and the Strategy-Performance Relationship
Mon: 11:15 – 12:30
Session 203: Post Acquisition Learning
Session 204: Acquiring human capital: Process and outcomes
Mon: 13:45 – 15:00
Session 107: Evolving Industries, Evolving Products
Session 205: Knowledge Recombination and Interdependencies
Mon: 16:45 – 18:00
Session 100: Innovation Management in Networks, Ecosystems, and Innovation Hubs
Session 200: Strategic Leadership, Learning, and Exploration
Tue: 08:00 – 09:15
Session 136: Innovating and Learning in Collaborative Alliances
Session 255: Processes for Innovation and Ideation
Tue: 11:00 – 12:15
Session 101: Strategic Patenting
Session 137: Entrepreneurial Experience and Cognition: Implications for Venture Performance
Tue: 14:15 – 15:30
Session 198: Emerging Market Strategies
Session 206: Knowledge Replication, Transfer and Absorption
Tue: 15:45 – 17:00
Session 17: Human Capital and Entrepreneurship
Session 108: Open Innovation: Antecedents and Performance Effects
Session 262: Pioneering Knowledge
Tue: 17:30 – 18:45
Session 60: Blurring the Boundaries of Strategy Work
Session 202: Team Dynamics and Creativity
Session 271: Spinouts

Strategic Management Society