This chapter investigates the use and impact of patents on markets. Patent strategies are variegated and often sophisticated, far beyond the basic justification of patent systems. Strategic patenting (patent thickets, picket fences, inventing around, defensive patenting) behaviours inevitably translate into a snowball effect of patent applications by the business sector. Licensing-out and licensing-in are also more frequent practices, as witnessed by the growth of the market for technology. The increased number of patents, their highly skewed value distribution, and their more sophisticated exploitation has strengthened the need for reliable valuation methods, including the cost, market, and income approaches. IP rights are gradually being used as financial instruments, including as collaterals to loans, securitized assets, and tradable assets.
Keywords: patent exploitation, licensing, strategic patenting, patent valuation, patent securitization, market for technology