Research On Chinese LED Patents Based On The Theory Of Patent Fragmentation

Light-Emitting Diode is the most advanced lighting technology.International competition about LED industry is very strong, In recent years, with the last development of LED industry in China, the relevant patent applications and number of holders increases more and more.In order to occupy Chinese LED market, foreign companies continue to apply patents, these patents involved areas of technology are expanding. But accompanied with many problems, such as some innovative products:semiconductors, computer software, electronics, etc. these patents are owned by different patent holders,it forms patent "fragmentation". In order to achieve a product, the firms need to be license by multiple rights holders, as cutting the forest to go out the forest. For this reason, companies have to pay high fees, so, it blocks technological innovation.Do Chinese LED industry have this problem?Based on fractal theory and other methods,they demonstrate the Chinese LED industry patents fragmentation.Empirical study on the factors influencing the patent fragmentation and effects of patent fragmentation, according to foreign country coping strategy, we built game model foring comparing market performance of three patent strategies.We get the following innovative points:First, Defined patent fragmentation.Compared different views on patent fragmentation,summarized the definition of the patent fragmentation, finally, we define patent fragmentation.Based on assumptions of patent fragmentation, By constructing game model,we found from R&D to file patent,the firms take shorter R&D cycles, the block patents,these factors will promote patent fragmentation; in order to produce the product, the firms must obtain patent licenses from patent holders, if more the licensors, the lower the company’s economic profit,consumer surplus and social welfare.In other hand, this paper analyzed and summarized the basis of domestic and foreign patents fragmentation measurement and patent fragmented literatures We proposed to use fractal theory and so on to measure the degree of patent fragmentation, and taken Chinese LED industry as an example to measure the patent fragmentation Empirical study on the factors influencing the patent fragmentation and effects of patent fragmentation,we found the factors on technological standard, number of patent holders,patents of cooperation.etc may effect forms of patent fragmentation,this result may cause the adverse influences of patent rights excessively expanding in order to infringe common area.etc.Finally, We concluded foreign countries coping strategies,compared the advantages and disadvantages of three patent strategies included:patent licensing strategy, patent pools,patent focused strategy. We taken suggestions about resolving patent fragmentation,which is suite for development of Chinese LED industry.