Welcome to Business Models in the Patent and Intellectual Property Markets

Intellectual property (IP) is of increasing relevance for today’s economy, especially for the IT market, where innovation is continuously revolting the newest trends of its products without guaranteeing prevalence, not even to the market leaders. Even the daily news consumer becomes aware of it when spectacular litigations between IT giants dominate the headlines of the print media or TV-news. They are, however, not the outbursts of obscure, reckless, once in a lifetime happening espionage attacks, but of a growing sober market with diverse business models and strategies.

Concurrently, this IP market does not appear to be transparent at all, particularly as there is no real market place where buyers and sellers can meet. Further reasons for the lack of transparency can be discerned by viewing the difficulties, how to estimate the true value of any IP, as well as the involved transaction costs which are of considerable size. This new complex patent market is still in the early stage of development and is still learning from its own young history, and hereby in particular from victories and defeats in litigation processes. Indeed, the thereby chosen strategies, both for the offense and the defense, are exploited in the aftermath, which spawns new intermediaries to enter the market place and eventually to rise by developing new strategies in preparation for the next trials to come.