The Impact of Patent Intermediaries

This chapter assesses the impact of patent intermediaries from three different perspectives. First, we assess the effects of intermediation activity on the market for patents. We stress the fact that patent intermediaries were, are, and will continue to be fundamental elements in the construction and development of this market. Second, we discuss the impact of patent intermediaries’ activity from the market participants’ point of view. To do so, we identify three main groups: (1) inventors and R&D specialists, (2) operating companies, and (3) patent attorneys and enforcers. The interdependence among the different roles that patent intermediaries can play in the market for patents prevents us from formulating absolute answers. Instead, we prefer to draw conservative conclusions and highlight the fact that patent intermediaries—and the other market players—feed a vicious circle of positive and negative effects. Finally, we discuss the impact of patent intermediation from an institutional perspective. We find that the emergence of patent intermediaries that focus mainly on litigation has led to significant legislative changes, particularly in the US, due to the efforts made to hinder their activity. As a result of these changes, certain patent intermediaries have explored new markets (e.g., the European market) and new ways of doing business to guarantee their survival.