Bagheri, S.K., "Are Open Innovation compaies challenged by Patet and Competition Laws?," Published as research paper by World Intellectual Property Organization, 2009.
In the following, the growing trend toward Open Innovation will be looked at from a patent and competition laws point of view and the potential challenging areas will be explored under four separate titles. Part I of the article, looks into the hot topic of “optimal scope of patent protection”, the effect of which on the growing demand for open innovation solutions will be examined. In Part II, the concept of “Patent Trolls” will be reviewed and the general attitudes against them among the legal authorities will be explored by looking into the emerging IP-Based Business Models and also Secondary Innovation Markets in Open Innovation context. Part III, takes a look at the “territorial” nature of patent rights and its consequences on Open Innovation companies. Part IV then considers the outward movement of technology from Open Innovation companies, in the form of cross-licensing, patent pooling or simple license-out arrangements, in the light of the limitations posed thereon, from “Competition Law” authorities. In doing so, I will try to identify the potential challenge areas and briefly examine the policy implications thereof. However, pinpointing the possible solutions falls outside the scope of this paper.