Patent assertion entities in Europe: their impact on innovation and knowledge transfer in ICT markets

Patent assertion has become a common practice in shaping the balance between technology creation and technology dissemination in the Information and Communication Industry (ICT). The importance of this practice for the functioning of ICT markets has given rise to new entities that enforce patents but do not utilise the patented technology, commonly referred to as patent assertion entities (PAEs). Overall, views on the role of PAEs in ICT markets and their impact on innovation and knowledge transfer in ICT are polarized. On the one hand, patent assertion may foster innovation by providing innovators with effective patent monetisation options and by increasing the liquidity of patent markets. On the other hand, additional litigation, the threat of litigation and arbitration efforts may impose additional cost on the innovation ecosystem and obstruct innovative initiatives. This study provides an overview of patent assertion practices and of PAEs in Europe, taking into consideration their impact on innovation and technology transfer in European ICT markets. Currently, little research on PAEs in Europe is available, in sharp contrast to the wealth of analysis that has been conducted in the United States. This study aims to fill this gap by investigating the specific features of patent assertion in Europe.