Essential Patents and Knowledge Position, a Network Analysis on the Basis of Patent Citations

Abstract

Technology standards are considered important tools for increasing bargaining power and licensing revenues by combining the strategies of firms with the standard-setting organizations (SSOs) standardization processes. The essential patents declared by members of the SSOs play a critical role in such standardization processes. Some former researchers have found that, when using network analysis for measuring the knowledge positions in the “main-path” of standards-based markets, the essential patents did not match very well with the actual knowledge positions of the firms, in most cases. In this paper, we focus on the essential patents declared by the member firms in JTC1, an SSO that provides a standards development environment related to the development of the worldwide information and communication technology (ICT) standards for business and consumer applications, and that employs social network analysis techniques to investigate the knowledge positions of the patents, not only in the “main-path” discussed in the earlier literature, but also in the brokerage processes. We found that the brokerage-process approach helped us to better understand the roles of the essential patents that dominate transactions, relations, and the exchange of knowledge in the patent citation network than that of the main-path. Our findings suggest that claiming essentiality depends on the strategic behavior not only of the patents’ owners, but also of the SSOs.