What does the comparison between the digital camera sensor patent and a specific video compression patent illustrate about patent breadth?

Fundamental patents covering underlying concepts, like the integrated circuit structure, command higher long-term valuation due to wider applicability.

The comparison highlights the power of broad foundational claims versus narrow application claims. A patent on the basic structure of the integrated circuit applies universally to every computer and smartphone, giving it immense reach and long-term valuation potential. Conversely, a patent on a unique way to compress video files is highly profitable only within the streaming sector. This demonstrates that securing the rights to the underlying, general technology wave results in superior long-term financial leverage compared to securing rights only over a specific implementation of that technology.