Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Bank of Finland Research Discussion Papers, Bank of Finland

No 22/2009:
Does State Street lead to Europe? The case of financial exchange innovations

Mari Komulainen () and Tuomas Takalo ()

Abstract: We study whether and to what extent financial exchange innovations are in practice patentable in Europe. We find that exchange-related applications initially increased significantly after the State Street decision but subsequently decreased. The clear majority (65%) of applications come from the U.S. investment banks and exchanges themselves being among the most active innovators. But patents were not easly granted in response to these applications (only 3% of them led to valid patent). The high post-grant opposition rate (41%) for granted patents indicated that competitors tightly monitored each other’s patents. The evidence, as augmented with clinical case studies, supports the notion that, for an invention to pass the inventive step requirement for obtaining a European patent, it should have technical features for solving a sufficiently challenging technical problem. Our evidence suggests that patentability standards for financial methods have not weakened in Europe in the aftermath of the State Street decision and that the inventive step requirement constitutes a major obstacle for applicants to overcome in order to obtain a financial exchange patent in Europe.

Keywords: finance patents; financial innovation; business method patents; patent policy; management of intellectual property in financial services; (follow links to similar papers)

JEL-Codes: G24; G28; K29; O32; O34; (follow links to similar papers)

53 pages, September 22, 2009

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

0922netti.pdf    PDF-file
Download Statistics
This paper is published as:
Komulainen, Mari and Tuomas Takalo, (2013), 'Does State Street lead to Europe? The case of financial exchange innovations', European Financial Management, Vol. 19, June, No. 3, pages 521-557

Questions (including download problems) about the papers in this series should be directed to Minna Nyman ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:bofrdp:2009_022 This page was generated on 2014-12-14 19:21:35