Proceedings of the 3rd European Conference on Intellectual Capital

Albrecht Fritzsche and Rebecca Geiger
3.2 Organizational principles <strong>of</strong> rational action
The framework <strong>of</strong> patent management presented in this paper is based on <strong>the</strong> assumption that <strong>the</strong>
instrumental usage <strong>of</strong> patents is part <strong>of</strong> a rational problem solving process. Fur<strong>the</strong>rmore, we assume
that <strong>the</strong> problem that motivates patenting can generally be described as gaining competitive advantage.
Rational problem solving is a systematic activity that involves several subsequent steps. The general
literature about problem solving describes <strong>the</strong>se steps in different ways (see e.g. Davidson/Sternberg
2003, p 5, or Dörner/Dietrich 1989, pp 67). All approaches, however, refer in some way to (1) <strong>the</strong>
recognition <strong>of</strong> <strong>the</strong> problem, (2) <strong>the</strong> review <strong>of</strong> <strong>the</strong> possible alternatives to act, (3) <strong>the</strong> description <strong>of</strong> <strong>the</strong>
operation to realize <strong>the</strong>m, (4) its execution, and (5) <strong>the</strong> review <strong>of</strong> <strong>the</strong> results. The principles <strong>of</strong> rational
problem solving have also been adopted by management and organization <strong>the</strong>ory. In this context, <strong>the</strong>
basic steps <strong>of</strong> <strong>the</strong> process are usually referred to as (1) forecasting , (2) planning, (3) organizing, (4)
leading, and (5) controlling; ano<strong>the</strong>r popular description <strong>of</strong> <strong>the</strong> steps is given by <strong>the</strong> terms (1) goal, (2)
strategy, (3), tactics, (4) operation, and (5) evaluation (see Fayol 1966, Daft 1983, and Scholl 2001, pp
10, pp 14).
3.3 Organizational principles <strong>of</strong> rational action
Considering competitive advantage as <strong>the</strong> overall goal, <strong>the</strong> protection <strong>of</strong> a product has to be understood
as one strategy to accomplish that. It is tempting to proceed from <strong>the</strong> definition <strong>of</strong> <strong>the</strong> strategy directly to
<strong>the</strong> operation <strong>of</strong> registering a patent. However, <strong>the</strong> tactical move in between must not be forgotten.
Before <strong>the</strong> registration <strong>of</strong> a certain patent can take place, it is first necessary to make a choice about <strong>the</strong>
patent to register as <strong>the</strong> right means to protect <strong>the</strong> product. According to our framework, patent management
<strong>the</strong>refore can be expressed in <strong>the</strong> following way:
Table 1: Patent management as a problem solving process
Topic Application to Patents Operation
1. Goal Competitive Advantage Problem Definition
2. Strategy e.g. Product Protection Possible Alternatives
3. Tactics e.g. Use patent as instrument Operational Description
4. Operation e.g. Patent Registration Execution
5. Evaluation e.g. Assess Pr<strong>of</strong>itability Review
4. A framework <strong>of</strong> patenting behaviour
4.1 Literature references to patenting procedurals
Table 2 gives a short overview <strong>of</strong> some representative literature about patent management. The term
strategy appears in various publications, but it is mostly applied in a ra<strong>the</strong>r colloquial sense to all activities
that involve patents. In order to avoid misunderstandings, we <strong>the</strong>refore use <strong>the</strong> terms procedurals
and intentions instead. A review <strong>of</strong> <strong>the</strong> literature yields <strong>the</strong> following results:
Table 2: References to strategies in literature about patent management
Author Procedural Context
Rahn
(1994)
Ernst
(1995)
Granstrand
Strategic Patent Setting
Combination <strong>of</strong> patents
and standards
Strategy <strong>of</strong> patent nets
(Flooding)
Buy licenses
Licensing and
Cross-Licensing
Patent pool Strategy
Combination <strong>of</strong> Patent and
Trademark
Technological leaders attack competitors by blockade setting, technological
standards are set on <strong>the</strong> market in order to expand <strong>the</strong> own
market share.
Specific, clearly focussed technological applications cover a certain
technological field.
Development <strong>of</strong> <strong>the</strong> needed technology for production is no longer
possible or not intended (ex: electronic and optical industry), but
access to foreign technology is needed.
Revenues through licensing, avoidance <strong>of</strong> lawsuits.
In cases in which products are a trademark at <strong>the</strong> same time, enforce
<strong>the</strong> own trademark and brand reputation
Selective patenting High concentration on specific technological fields and technological
applications (ex: SME mechanical manufacturing with low patenting
Internationally oriented
patenting
„Ad hoc blocking“ and „Inventing
around“
activities)
Patents in various technological fields and technological applications
(ex: mechanical manufacturing)
Protection <strong>of</strong> an innovation in specific applications
Minimize R&D costs
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