Does State Street Lead To Europe? The Case Of Financial Exchange Innovations
Source: Bank of Finland
The authors study whether and to what extent financial exchange innovations are in practice patentable in Europe. They 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 easily 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.