Explaining The Reasons for The Unwillingness to Use Patents to protect Intellectual Property in The Upstream Oil Industry

Document Type : Review article


Commercialization and Business Development Department, Technology Management Division, Research Institute or Petroleum Industr


In the upstream oil industry, innovative companies are reluctant to protect their technological achievements through patents in order to seizure their economic rents. This unwillingness of the upstream oil industry’s players to protect their technological innovations by patent that can relate to the characteristics and effectiveness extent of patents for protecting technology, due to differences in the upstream oil industry with other industries. Of course, this unwillingness is different among the various players in the upstream oil industry. Based on this, the paper examines the role of patents in protecting intellectual property in the upstream oil industry and its effectiveness. Next, the  reasons for the unwillingness of players in the upstream oil industry to protect their technology through patents are  described. Finally, the necessity of revising this routine to protect the intellectual property of the upstream oil industry in order to accelerate the evolution of this industry will be discussed. In sum, the high cost of developing,  demonstrating and commercializing technology, along with the high benefits of technology utilization, and the high  immitability inherent in this industry, have led the patent system to be seen as an inefficient protective tool. 


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