Mordecai Kurz Discusses Big Tech and Market Power

Mordecai Kurz highlights the strategic approach taken by General Electric (GE) in the realm of patents, which mirrors tactics employed by contemporary firms. GE's strategy involved creating a comprehensive patent portfolio that extended the protection of its technologies, particularly in the electricity sector. By patenting every component of its products, such as light bulbs, GE effectively stifled competition and maintained its market dominance long after the expiration of Thomas Edison’s original carbon filament bulb patent in 1897. The company’s innovative approach, referred to as a “patent pyramid,” allowed GE to safeguard its market power by ensuring that virtually all equipment related to its lamps was under patent protection. This strategy not only preserved its competitive edge but also enabled the company to capitalize on its inventions and adaptations in a rapidly evolving technological landscape. In addition to its foundational products, GE expanded its portfolio by redesigning and patenting a wide array of new technologies. These included electric toasters, flexible X-ray machines, and various home appliances, as well as industrial equipment and advanced medical devices like MRI scanners. This diversification of products under patent protection further solidified GE's position in multiple markets. Ultimately, GE's strategic use of patents exemplifies how companies can leverage intellectual property to maintain a competitive advantage, a practice that remains relevant in today’s business environment.