53% of organizations focused on this approach, compared with Organizations primarily derive value from 38% in North America and Europe. Furthermore, 73% of organiza- products and services built around standards tions in the Asia-Pacific region report that patent royalties provide a great ROI compared with North America (52%) and Europe (42%). Organizations derive value from standards in multiple ways. As FIGURE 8, royalties are important to only 17% of organi- Despite this strong focus on patent royalties, the Asia-Pacific shown in region also recognizes the benefits of open standards. A notable zations responding to our study. Far more organizations reported 77% of organizations in this region state that the benefits of open that they derive value from standards in other ways, e.g., by standards outweigh patent royalty opportunities compared with focusing on services, usage, or integration with standards (55%); North America (71%) and Europe (67%). selling products into a market created by the standard (50%); or selling products built to the standard (46%). This clearly supports We also found that medium-sized and large organizations are the previous finding that standards are critical to an organization’s the most focused on leveraging patents and royalties, as shown overall technology and IP strategies. in Appendix Table A31. This might be because these organiza- tions have more resources to invest in patenting and may be The collection of royalties as a business activity varies across better positioned to negotiate licensing agreements, giving them a regions. Appendix Table A21 shows that organizations in the competitive edge in the market. Asia-Pacific region (21%) and North America (19%) are more likely to focus on collecting royalties, while European organiza- tions (7%) seldom engage in this practice. This regional disparity FIGURE 8 S�lling ��rvic�� around impl�m�nting, u�ing, 55% ORGANIZATIONS PRIMARILY or int�grating �ith th� �tandard DERIVE VALUE FROM S�lling product� or �olution� into 50% STANDARDS THROUGH a mark�t cr�at�d around th� �tandard S�lling product� or �olution� 48% PRODUCTS AND SERVICES built around th� �tandard How does your organization Coll�cting royalti�� �rom 17% generally derive value from t�chnology �� hav� pat�nt�d standards? (select all that apply) Oth�r (pl�a�� �p�ci�y) 4% 2023 STATE OF OPEN STANDARDS SURVEY, Q24 (TABLE A20), Don't kno� or not �ur� 7% SAMPLE SIZE = 442, VALID CASES = 442, TOTAL MENTIONS = 800. THE 2023 STATE OF OPEN STANDARDS EMPIRICAL RESEARCH ON THE TRANSITION TO OPEN STANDARDS 21