Question

Discuss the role of the patent system in this case.

From its humble beginnings in 1946 as a small enterprise of some 20 staff members repairing phonographs, a brave decision to obtain a patent license changed the fate of this enterprise. In 1952, the founder of the enterprise came across patent information on an invention of the Bell Laboratories: the transistor. He approached Western Electric (WE) of the United States of America, the patent holder, and obtained a patent license. At that time, the transistor was only used in hearing aids, and WE did not see any chance for greater commercial success in the application of the transistor technology. Wondering if such a small firm was capable of developing any useful device from the transistor, WE shared with engineers of the enterprise useful technical information about the transistor, as agreed in the patent license agreement. In 1955, the small enterprise produced its first transistor radio and marketed the new product, which was a huge success. The successful commercialization of a transistor radio enabled this small enterprise (subsequently renamed as Sony Corporation) to enter the global market of electronics.

Answer 1

1950s and 60s was beginning of all new invention, that was the starting time for new electronic items in that time transistor was just a electronic item in the time all are didn’t know about the future use of the transistor. Because that’s was the starting no one predict the future sony corporation take the chance and make the patent to transistor and they get success from the that patent because transistor later uses for all the electrical device and also important part of the all electrical device.

A patent system gives an:

Protection. A patent allows the patent holder to exclude others from commercially exploiting the invention covered by the patent in a certain country or region and for a specific period of time, generally not exceeding 20 years.

Disclosure. A patent gives the public access to information regarding new technologies in order to stimulate innovation and contribute to economic growth.

Patent system is an important resource for researchers and inventors, entrepreneurs and commercial enterprises, and patent professionals. Patent information can assist users to:

· Avoid duplicating research and development effort of transistor.

· Determine the patentability of their transistor.

· Avoid infringing other inventors’ patents;

· Estimate the value of their or other inventors’ patents;

· Exploit technology from patent applications that have never been granted, are not valid in certain countries, or from patents that are no longer in force;

· Gain intelligence on the innovative activities and future direction of business competitors;

· Improve planning for business decisions such as licensing, technology partnerships, and mergers and acquisitions;

· Identify key trends in specific technical fields of public interest such as those relating to health or to the environment and provide a foundation for policy planning.

From the above patent system gives an boost to the sony company for be successful.