The Emerging Role of Patent Law in Risk Finance

Abstract

Until recently, financial intermediaries have behaved as though immune from the bite of intellectual property law. However, recent decisions of the federal courts and acquiescence by Congress have created a new legal landscape. This article explores the basic principles and implications of patent law for risk finance, specifically in terms of emerging opportunities and incentives related to structured risk management solutions. In so doing, the discussion introduces the trade‐off between past reliance on trade secret law versus the evolving trend toward financial patents. The author addresses its influence within the convergence markets, and argues that patents may play a significant role in future financial and insurance innovation.

Citation

Heaton, J.B. (2001), "The Emerging Role of Patent Law in Risk Finance", Journal of Risk Finance, Vol. 2 No. 2, pp. 18-28. https://doi.org/10.1108/eb043458