The number of Postal Service patents has grown significantly in the past few decades, as have the patents for rival carriers FedEx and UPS. When compared to other industries, such as information technology and wireless communications, the Postal Service has not significantly leveraged its intellectual property or fully recognized the potential financial and strategic value of these assets. If the Postal Service considered the commercial significance of each of its patents and licensed its intellectual property, it might find a valuable source of significant revenue. A 2011 Office of Inspector General report found that the Postal Service has 329 global families of patents, which means each “family” of a patent may have a multiple number of U.S. and international patent documents. The study looked closely at three specific patents to assess the commercial significance of each patent, or the revenue that the Postal Service may be able to generate through licensing of the patent. Those three patents alone hold a commercial value of more than $18 million per year. The report concluded that the Postal Service did not manage its portfolio of patents to maximize commercial significance. However, some stakeholders have argued that the Postal Service is different from private industry, even if it is encouraged to act like a business. It is a public institution held in the public trust. In that sense, it belongs to the American people. Shouldn’t a public institution that belongs to the American people open up the technology and patents it has developed for the benefit of the national infrastructure? There is a risk that in licensing patents or holding proprietary technology, the Postal Service may stymie innovation in the public and private sectors. Some people have looked to the Defense Advanced Research Projects Agency (DARPA) as a model. Its idea to link computers into a national system eventually led to the development of the Internet. [poll id="244"] [poll id="245"] The key for the Postal Service is to build a strategy and let it guide decisions on how best to leverage intellectual property. The first step might be to have an active program that looks to generate as many intellectual property instruments as possible. Once the Postal Service owns and protects that property, it can determine whether the best approach is to license it, sue for infringement, or share it. Tell us what you think. Take our poll question and then go to the comment section to share what you think would be the best strategy for the Postal Service on intellectual property and patents.

Comments (2)

  • anon

    The Postal Service is trapped in this debate about whether it is a business or a public service, and this debate is killing it. Regardless of what the solution is, there needs to be a clear decision on this. If it is to be run as a profit-seeking business, then of course it should be allowed to leverage its intellectual property. If it is a public service, than its focus should be on universal service (possibily with a government subsidy) without much regard for whether it makes a profit or a loss - in this case it could share its intellectual property as infrastructure as it has done for decades.

    Feb 05, 2013
  • anon

    The USPS is a public institution that should focus on it's core purpose - universal delivery. They should not be able to mandate regulations and requirements, and then try to profit from being both referee and player in the same game.

    Feb 04, 2013

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