Business Method Patents in Europe and theirStrategic Use: Evidence from Franking DeviceManufacturers

There has been a wide-spread misconception based on the imprecisewording of Art. 52 of the European Patent Convention (EPC)that the protection of business methods by patents is prohibited inEurope. This paper investigates the legal framework set by patentlaws with respect to the patentability of business methods, contrastingthe situation in lege in Europe and the situation in the US. It isshown that in praxi business methods have never been excluded frompatentability in Europe. In the empirical part of the paper, 1,901 Europeanpatent applications relating to business methods are identifiedand major patent indicators are computed. Further, a case study fromthe franking device industry which is characterized by strong competitionfor intellectual property rights is conducted. It contains evidencefor the strategic use of business method patents leading to oppositionrates against granted patents of 44%....