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Design and Return of Patent Defense Market Mechanism ——A Case of License on Transfer Network |
Lin Zhijian1, Shen Kai1, Huang Can2, Zhou Yuan1 |
1. Zhejiang Institute of Scientific and Technological Information, Hangzhou 310052, China; 2. Institute for Intellectual Property Management, Zhejiang University, Hangzhou 310058, China |
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Abstract The LOT (License on Transfer)network is a patent defense market mechanism to deal with the litigation risk of patent assertion entity,and its purpose is to reduce the patent risk of enterprises.However,it is not easy to quantify the returns from joining the LOT network.This paper briefly introduces the model to calculate the returns on investment in joining the LOT network,analyzes the benefits of Chinese enterprises joining the LOT network and the impact on their performance.We find that for the Chinese enterprises with significant overseas business,with patents only in narrower technology areas and with defensive patent strategies,joining the LOT network brings a higher return on their investment.This study provides references for Chinese enterprises to resist litigation risks of patent assertion entities,formulate patent defense strategies,and quantitatively evaluate the value of joining the LOT.
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Received: 12 March 2020
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