An empirical look at software patents request pdf researchgate. Software patent does not have a universally accepted definition. The other people on the panel were patent attorney simon davies, and ioannis bozas, a patent examiner at the epo. The bessen hunt 198089 sample consists of 100 randomly selected patents that were selected as software patents. Software patents and patents on computerimplemented inventions are a class of patents and one of many legal aspects of computing. The authors argue that firms primarily use software patents strategically. The software patent experiment james bessen research on. A software patent is a patent on a piece of software, such as a computer program, libraries, user interface, or algorithm background.
Also bessen and hunt 2007, in a study on software patents granted by the uspto, conclude that much of the surge in patenting is driven by. Previous research has documented the legal and economic aspects of software patents. The case against software patents, in 9 charts vox. In 2002, james bessen and robert hunt released a paper that argued that firms were applying for large numbers of software patents to discourage competitors.
This report examines changes in the patenting behavior of the software industry since the 1990s. This was a period of very rapid growth in patenting the number of patents of any kind granted in 2001 was 1. Hunt, federal reserve bank of philadelphia a version tagged working paper was published freely online in 2004 and is by far the most referenced version. Bessen and hunt found that software publishing and software services industries combined accounted for only 7% of software patents during the 1990s, despite employing 33% of the computer programmers. Dec 01, 2014 james bessen is, along with michael meurer, the author of patent failure. Mar 01, 2007 an empirical look at software patents an empirical look at software patents bessen, james. Using the definition of bessen and hunt 2007, four out of five business method patents are also software patents.
Hunt 2007, an empirical look at software patents, journal of economics and management strategy 16, no. In \\the software patent experiment,\\ bob hunt and jim bessen investigate whether this has, in fact, happened. An empirical look at software patents by james bessen and robert hunt, journal of economics and management. Review of bessen and hunts analysis of software patents, a. As a result, the share of all patents counted as software patents increased from about.
Hunt, an empirical look at software patents federal reserve bank of philadelphia, working. Nearly 25,000 software patents were granted in 2002. The article rejects those claims for two broad reasons. Software patent wikimili, the best wikipedia reader. An empirical look at software patents is a paper jointly published in march 2004 by. Bessen and hunt found that software publishing and software services. An empirical look at software patents bessen 2007 journal of. An empirical look at software patents, journal of economics. Despite our very different views on the subject, we had very friendly. During the 1990s companies obtained a larger share of software patents than other patents 88% vs. For including patents in their study that might not be software patents. For software patents and business methods, it seems the courts have largely eliminated this requirement burk 2002, burk and lemley 2002.
External linka generation of software patents, 2011 study which concludes that software patent are not beneficial for society. James bessen research on innovation and boston university visiting researcher robert m. An empirical look at software patents, working papers 0317, federal reserve bank of philadelphia, revised 2004. Organization for economic cooperation and development, 2004. How judges, bureaucrats, and lawyers put innovators at risk 2008 25, 29, 37, 39 james bessen and robert m. The bessen hunt technique is a way of identifying software patents within the patent database of the united states patent and trademark office uspto by using keyword searching.
The united states patent and trademark office has granted patents that may be referred to as software patents since at least the early 1970s. James bessen on software patents software patents wiki en. Jpmh writes at last, some quantitative analysis about software patents. Software patents now comprise 15% of all patents, mostly acquired by manufacturing firms and large firms. Existing research on software patents reveals a dramatic increase in the propensity to patent software over the last two decades, and argues that this indicates that holding patents on software has become both easier and more valuable to firms bessen and hunt 2003. Hunt 2004, an empirical look at software patents pdf this paper includes a method of identifying software patents that has proved popular with organisations such as the public patent foundation. Numerous cases have gone to court, and many patents have been rejected due to the abstract idea rule. Edward steinmueller, editors, new frontiers in the economics of innovation. The software patent experiment when it comes to patents. The vast majority of software patents around 75% go to manufacturing firms, with only a small fraction less than 7% in one study going to software companies, showing that the economic effects of and commercial interest in software patenting reach far beyond the software sector. A generation of software patents by james bessen boston university journal of science and technology law 2012 scholars brief in alice corp. A generation of software patents, 2011 study which concludes that software patent are not beneficial for society.
In the recent european debate over software patents, fourteen economists issued a letter to the. Since the alice ruling, software patents have been harder to get. The bessenhunt technique is a way of identifying software patents within the patent database of the united states patent and trademark office uspto by. In this article, bob hunt and jim bessen investigate whether this has, in fact, happened. Thanks to peter bessen of may8software for providing a software agent to acquire our patent database and annette fratantaro for her work with the compustat data set. These rights are granted to patent applicants in exchange for their disclosure of the inventions. His work on software patents with eric maskin nobel laureate in economics and robert hunt has influenced policymakers in the us, europe, and australia. Hall and macgarvie 2006 find that legal decisions expanding software patentability were viewed negatively by the stock market and that the marginal software patent makes little contribution to market value. The typical owner of a software patent is a relatively large, wellestablished firm. There is intense debate as to what extent such patents should be granted, see software patent debate free online dictionary of computing provides a general definition of a software patent as a patent intended to prevent others from using some programming. They are acquired primarily by large manufacturing firms in industries known for strategic patenting. Everything you need to know patent law resources how to patent an idea provisional patent patent pending design patent plant patent utility patent. A patent is a set of exclusionary rights granted by a state to a patent holder for a limited period of time, usually 20 years.
Software patents have grown rapidly in number and now comprise 15% of all patents. The first and most basic factor is the reversal of the subject matter exception that precluded patents on software, as described in the introduction. An empirical look at software patents preliminary version. An empirical look at software patents, with james bessen, working paper 0317r, march 2004. Software patents have grown rapidly and now comprise 15 percent of all patents. To study the evolution in the granting of software patents we reproduced and extended part of the empirical study on software patents conducted by bessen and hunt. A software patent is a property right, or type of utility patent, that protects any performance of a computer relised by means of a computer program. Regulatory takings and proposals for change with timothy vandenberg, washington. An empirical look at software patents with james bessen, journal of economics and management strategy, vol. Thus strategic patent portfolio behavior may cause firms to substitute. Aeibrookings joint center working paper, year 2003. Hunt, an empirical look at software patents, working paper 0317r, federal reserve bank of philadelphia, 2004 bessen, james and robert m. The bessen hunt 199698 test sample consists of 400 randomly selected patents from those years, of which 50 were identified as software patents, but 54 were true software patents. The bessen hunt 198089 sample consists of 100 randomly selected patents that were selected as software patents by our algorithm.
An empirical look at software patents software patents. According to the empirical research conducted by bessen and hunt 2007, it was determined that most software patents dont come from the software industry. In fact, the software industry in the united states was subjected to a revealing natural experiment in the 1980s and 1990s. Background the rise in the number of software patents should be viewed as a multifactored phenomenon. An empirical look at software patents james bessen research on. Benson 1972, the united states supreme court ruled that a patent for a process should not be allowed if it would wholly preempt the mathematical formula and in practical effect would be a patent on the algorithm itself, adding.
They describe the spectacular growth in software patenting, who obtains. A comment on do patents facilitate financing in the software industry. Review of cristiano antonelli, dominique foray, bronwyn h. Fact sheet august 28, 2015 these issues often arise in discussions of patentable subject matter and software. James bessen on software patents software patents wiki. Patents that meet these criteria and also contain the words semiconductor, chip, circuit. The increasing value of patents for later stage startups17 a direct effects. In the second half of the 1990s, firms in the software industry received 1% of all patents granted to firms bessen and hunt, 2007. Software patents in different jurisdictions ftisa discussion of software and business method patents, january 19, 2007 daniel ravicher, executive director, public patent foundation true or flase.
Some suggest that almost any patent on an invention implemented by a computer is a software patent. Software patents help trolls, hurt innovators, and cost the economy billions. Bessen and hunt henceforth bh define software patents as those that include the word software, or the words computer and program, in the description andor specification. Through a sequence of court decisions, patent protection for. Sequential innovation, patents, and imitation james bessen.
Meurer, bessen wrote patent failure princeton 2008, highlighting the problems caused by poorly. It finds that most software firms still do not patent, most software patents are obtained by a few large firms in the software industry or in other industries, and the risk of litigation from software patents continues to increase dramatically. James bessen is, along with michael meurer, the author of patent failure bessen is also the author of an empirical look at software patents, along with robert hunt bessen appeared in the patent absurdity video. Bessen is also the author of an empirical look at software patents, along with robert hunt. Do patents facilitate financing in the software industry. This paper by bessen and hunt looks at the econometrics of who is being granted sw patents. The residual increase in software patent propensity is consistent with a sizeable increase in the cost effectiveness of software patents during the 1990s, perhaps. These issues often arise in discussions of patentable subject matter and software. March 16, 2004, the software patent experiment pdf hahn, robert. Surprisingly, most software patents are assigned to manufacturing firms and relatively few are actually assigned to firms in the software publishing industry sic 7372. James bessen research on innovation and boston university.
Overall, software patents are more likely to be obtained by larger firms, established firms, u. The software patent experiment with james bessen, in patents, innovation and economic performance, conference proceedings. The link to the working paper is still helpful because that version is freely available, so i would recommend keeping that in. Also thanks to john allison, tony breitzman, joseph bush, and rosemarie ziedonis for sharing data with us. An empirical look at software patents an empirical look at software patents bessen, james. Estimates of patent rents from firm market value by james. An empirical look at software patents software patents wiki.
For industries like software or computers, theory suggests that imitation may promote innovation and that strong patents longlived patents of broad scope might actually inhibit it. They conclude that software patents have become cheaper than other patents and that. Research on innovation and boston university visiting. This fall, i went to amsterdam to talk about how software patents are delaying the future, on a discussion panel organised by the european patent office. Introduction over the past three decades, the federal courts, and to a lesser extent the us patent and trademark office uspto, gradually shifted from a view hostile to patents on software.