Evaluating the Financial Performance of Business Method Patent Owners

Abstract

Business method patents provide legal protection for the patent owner as well as other possible advantages, but for the most part IS academicians have not examined their effects. In an effort to understand the potential for business method patents to create competitive advantage, this study compares the financial performance of business method patent owners to the performance of their nearest competitors and industries. Although limited in its findings, this study helps to demarcate important issues for future research.

What impact does intellectual property have on the business performance of technology firms?

“…However, despite the general consensus among researchers that we have just summarized, the story from the literature is not so simple or uniform. Martin and Mykytyn (2009) have found no observable impact on the business performance of firms of patenting computer-implemented business methods. From their study of 96 US firms (48 of which did own patents and 48 equivalent firms which did not own patents) they concluded the following:…”

Project Management–Related Software Systems and Their Legal Protection: Emergence, Distribution, and Relevance of Business Method Patents

“…The majority of the most active assignees of business method patents for project management and related software systems are large companies (software completers and major users), which are involved in intellectual property litigation regularly (PatentFreedom, ). For these companies, business method patents (as one part of their patent portfolio) may be used as offensive or defensive barriers to ward off possible lawsuits or third parties from exploiting their own inventions in identical or adjacent technology fields (Martin & Mykytyn, ; Parchomovsky & Wagner, ). Furthermore, an extensive business method patent portfolio counts as proof of a company's innovative strength, thus increasing its shareholder value and stock price (Sakata, ; Boscaljon et al, ; Parchomovsky & Wagner, ).…”

Impact of Information Technology (IT) Security Information Sharing among Competing IT Firms on Firm’s Financial Performance: An Empirical Investigation

“…Despite the attention and calls for quantifying the benefits of security information sharing (ENISA, 2010), IS research has not empirically investigated the net impact of sharing IT security-related information through established organizations. Consistent with research investigating firm performance (e.g., Bharadwaj, 2000;Martin & Mykytyn, 2009;Santhanam & Hartono, 2003), we do not explicitly test how constructs from a theory influence firm performance. That is, we do not test the nomological network of relationships involving the constructs of a particular theory.…”

“…That is, we do not test the nomological network of relationships involving the constructs of a particular theory. Rather, based on Bharadwaj (2000), Martin and Mykytyn (2009), and Santhanam and Hartono (2003), we use the theoretical background that is important for understanding the benefits of security information sharing and that purports to realistically assess the impact of security information sharing. Accordingly, based on robust theoretical foundations, we empirically tested whether firm performance is better or worse based on membership in IT-ISAC.…”

“…In Section 2, we discuss the background of IT-ISAC and informationsharing organizations in general. In Section 3, consistent with Bharadwaj (2000), Martin and Mykytyn (2009), and Santhanam and Hartono (2003), we detail the theoretical background that helps resolve security-information exchange's coopetitive paradox and present formal research hypotheses. In Section 4, we describe the methodology and analyses and present the results.…”