KnowledgeLink Newsletter

Dr. Arnaud Gasnier
May 2008

Although the majority of companies and research organizations are filing increasing numbers of patent applications, they are not realizing the maximum value of these patents. This phenomenon is named the Patenting Paradox. Through efficient patent management, these organizations can learn how to cope with the complexity of patents, and yield more profit from them: 'Serious games' are the best way to develop these management skills and solve the Patenting Paradox.

These are the findings of the thesis written by Dr. Arnaud Gasnier, Assistant Director of Patents & Licensing at the Netherlands Organization for Applied Scientific Research, and Assistant Professor at Delft University of Technology (TU Delft). His research is based on analyses of companies, universities and research organizations, and ten years of international professional experience. Dr. Gasnier defended his thesis last February at TU Delft. He has written a book on patent management and invented a game that helps firms learn how to better exploit the rising number of patents. His research was sponsored by the Research Fund of the European Patent Organization.

A complex but topical issue
In the current knowledge-based economy, firms (i.e. companies, research organizations and universities) tend to patent more in order to protect their growing number of innovations. Patent management, however, is a complex system that requires time to fully exploit the value of patents. Gasnier’s book introduces a new model of the firm to help managers learn how to further improve the operational and strategic dimensions of patent management. This new model named RMBV (Research, Manufacturing, Building, and Valorization) is presented to explain the current practices of patent management. Four business models are described with four types of patent strategy (defensive, commodity, profit and aligned).

Gasnier also describes a new framework for measuring performance. He introduces new key normalized indicators from direct measures (inputs and outputs of the RMBV model) and two dashboards to help managers navigate. Detailed methods to position, benchmark and project the performance of the firms' patent management are given, with actual examples from patent databases and annual reports.

Both model and measurement framework have been extensively reviewed by means of patent databases and illustrated with current practices. Empirical foundations are given from an audit of 70 companies and from actual examples based on patent information tools (Aureka from Thomson Reuters).

70 per cent of patents are not being used effectively
According to previous studies, only 30 per cent of patents in Europe are being used effectively. The rest are dormant. Gasnier finds the roots of the Patenting Paradox in the series of events and relationships that take place directly in the firms. He demonstrates that this is not due to a lack of awareness of the importance of patents, but rather due to the fact that firms pay too little attention to the overall process. Attention is the phenomenon which occurs between awareness and action; it filters which information to digest into actions and which one to leave aside.

These findings are validated through statistical analyses of a survey conducted among more than 8,000 patent users. Along the way Gasnier explores what the firms actually know about patents and how they perceive patents.

A serious game to teach firms how to use patents
There are already many successful management games developed, but none for patent management. Gasnier has designed a new patent game with various applications. The survey of 8,000 patent users revealed three main areas of improvement currently sought by the firms:

• education
• cooperation
• strategy development

Gaming in action (photo from TU Delft)

Gasnier's game aims to address these areas. When playing the game, 20 participants are pooled in five firms which compete in a 'global economy'. This economy is defined by 20 markets combining five products (MP3, GPS, PDA, DVD and PC) in four regions (North, East, South and West). For each market: one firm can acquire a factory and manufacture products, and the same firm or another one can acquire the patent. Then, depending on whether one or two firms own the factory and the patent, plus the timing effect, the firms will experience all the IP scenarios and business transactions than occur in real life. Some will secure their markets and others will license their technology or decide to create a joint-venture. The game has a strong accent on interactions between the participants: first when they decide on which global IP strategy for their own firms, and second when they negotiate with other firms to implement their strategies and make deals. The firms can also initiate infringement actions. The firm with the highest value (tangibles plus intangibles) at the end of the game is the winner.

This game can be used in different settings for specific audiences, to:

• raise IP awareness among the general staff of companies and research institutes, especially as to the effectiveness of IP in today's economy
• teach (under)graduates at technology universities and management schools
• establish a dialog between functions or peers using a fictitious environment
• experience a change of practices in a risk-free laboratory

The effectiveness of serious gaming has been demonstrated in many fields. Dr. Gasnier has shown the effectiveness of his game from a series of experiments involving 160 students and professionals from the Netherlands, France and Austria. When playing the game, these participants have gained knowledge by learning faster and with a sustained interest, compared to regular lectures. They have also acquired new perceptions outside their regular jobs or roles by getting evolved in the big picture. Further, the game fosters team-work and engagement: a group dynamic usually develops swiftly, even among populations which are usually not so involved and active. The game also tends to defeat reluctance: the participants who dislike games or patents before playing tend to be those learning the most at the end.

Further information
You can find further information and order The Patenting Paradox book online at http://www.patenting-paradox.com/. It is published by Eburon Academic Publishers (ISBN 978-90-5972-230-9), price 80 EUR.

Dr Arnaud Gasnier (photo from TNO)

Dr. Arnaud Gasnier provides training, especially game-based sessions, and trains facilitators for in-house use of this new game. You can contact him at:
Delft University of Technology
Faculty of Technology, Policy and Management
Section Policy, Organization, Law and Gaming
a.gasnier@tudelft.nl