Innovation, Competition and Collaboration

Innovation, Competition and Collaboration

Edited by Dana Beldiman

As innovation processes become increasingly collaborative, new relationships among players in the innovation space emerge. These developments demand new legal structures that allow horizontally integrated, open and shared use of intellectual property (IP). This book examines the fundamental issues regarding the collaborative use of IP and discusses emerging trends including: the interpretation of FRAND terms in the context of standard essential patents; secondary liability of technology providers; contractual arrangements in trademark law, and the treatment of IP issues in specific emerging industries.

Chapter 5: Managing the risks of intellectual property interdependence in the age of open innovation

Jacques de Werra

Subjects: innovation and technology, intellectual property, law - academic, competition and antitrust law, intellectual property law


Our globalized flat world tends to intensify the exchanges and interactions between the market players. It mirrors the movement of open innovation which is characterized by the increased use of third party knowledge for the purpose of enriching a company’s internal innovation (inbound open innovation), and by the continuing search for new markets and channels of distribution for the company’s own innovation (outbound open innovation). In a world of open innovation, innovation does not result from the internal efforts of companies, but from the network. Today’s networked and interconnected economy therefore perfectly expresses the paradigm of open innovation. The intensive interactions between the market players which are at the core of the open innovation ecosystem generally materialize in a multiplication of contractual relationships by which companies integrate in their products and services the intellectual assets (and intellectual property rights) of third parties and also offer their own intellectual assets to the market according to (contractual) rules and principles that they choose. This system makes it possible to capitalize on and benefit from the expert knowledge and experience of other entities, and can therefore contribute to an optimal allocation of corporate and societal activities and resources. These interactions can, however, generate risks which result from the interdependence that such interactions generate. The goal of this chapter is to explore some of the consequences of this network of intellectual property interdependence in the creation and in the use of innovation and to assess how the risks could be managed.

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