Financial patenting in Europe

Abstract

We take a first look at financial patents at the European Patent Office (EPO). As is the case at the US Patent and Trademark Office (USPTO), the number of financial patents in Europe has increased significantly in parallel with significant changes in payment and financial systems. Scholars have argued that financial patents, like other business methods patents, have low value and are owned for strategic reasons rather than for protecting real inventions. We find that established firms in non-financial sectors with diversified patent portfolios own a large share of financial patents at the EPO. However, new specialized technology providers in the financial area also hold a number of such patents. Decisions on the financial patent applications take longer and they are more likely to be refused by the patent office, suggesting greater uncertainty over validity than for other patents. They are also more likely to be opposed, which is consistent with the fact that their other economic value indicators are higher. ABSTRACTWe take a first look at financial patents at the European Patent Office (EPO). As is the case at the US Patent and Trademark Office (USPTO), the number of financial patents in Europe has increased significantly in parallel with significant changes in payment and financial systems. Scholars have argued that financial patents, like other business methods patents, have low value and are owned for strategic reasons rather than for protecting real inventions. We find that established firms in non-financial sectors with diversified patent portfolios own a large share of financial patents at the EPO. However, new specialized technology providers in the financial area also hold a number of such patents. Decisions on the financial patent applications take longer and they are more likely to be refused by the patent office, suggesting greater uncertainty over validity than for other patents. They are also more likely to be opposed, which is consistent with the fact that their other economic value indicators are higher.

Does State Street Lead to Europe? The Case of Financial Exchange Innovations

“…Many of our findings, for example, those concerning the time trends and home regions of financial patents, are similar to those of Hall et al . (), but there are some notable differences. For example, we find that the most active patent applicants are the financial service firms that are traditional sources of innovation in financial exchanges, whereas information and communication technologies and payment media firms comprises most of the top applicants in the data of Hall et al .…”

“…The closest paper to ours is an independently and simultaneously done study by Hall et al . (). Since we focus exclusively on the patenting of financial exchange innovations, our contribution complements that of Hall et al .…”

“…Since we focus exclusively on the patenting of financial exchange innovations, our contribution complements that of Hall et al . (), who cover a broader range of financial patenting but appear to emphasise the patenting of methods and technologies for payments and other similar transactions. Many of our findings, for example, those concerning the time trends and home regions of financial patents, are similar to those of Hall et al .…”

Is There an eBay for Ideas? Insights from Online Knowledge Marketplaces

“…Along these lines, many marketplaces emphasize the benefits of search directly or at least highlight the benefits of connecting previously unconnected knowledge owners and knowledge seekers. As such, it may facilitate exposure to new supply or demand for technologies (Zahra et al ., 2005; Hall et al ., 2009). Consider a testimonial from one marketplace in our sample:…”

“…Not only is there evidence that knowledge assets can be valuable (e.g., Gambardella et al ., 2008), but also that the forces driving technology transactions stem from both shifts in supply and demand for such knowledge (Zahra et al ., 2005). At the same time, the market for technology can expand with the growth of patents in new fields (e.g., Hall et al ., 2009). More recently, economic transactions have been increasingly taking place online.…”