EMPIRICAL STUDY ON THE DIGITAL CONVERGENCE STRATEGY AND PATENT ACTIVITY OF TAIWANESE MEDIA GROUPS

This study explores the strategy, innovative approach and patent activity of the UDN Group and the Want Want China Times Group, two of the largest media groups in Taiwan, in the digital convergence era. In the era of digital convergence, drastic changes to industry boundaries and media positioning have exposed media groups to the risk of patent infringement. The groups with larger end-user market will probably become the patentee’s target for charging royalties. However, neither of the two groups views patent rights as a strategic asset in either R&D or acquisition. Patent rights are not highly valued by the media industry in Taiwan. Therefore, it is imperative for media groups to consider patent risk and infringement liability when developing new products and services or when outsourcing technology. This study recommends that the leader in content service should monitor closely patents and develop a patent portfolio that focuses on data conversion, and cross-media data transmission and presentation. This type of portfolio may serve as a defensive measure in the short-term and as a patent niche to differentiate itself from other media groups in the long-term.