Preliminary Injunctions and Damage Rules in Patent Law
Abstract"This paper shows that preliminary injunctions may be sought in patent cases to obtain market power during the period of the injunction and are likely to be sought only where there is a small probability that the patent will be ultimately found valid. Both patentee and alleged infringer benefit from a preliminary injunction. This is an artifact of the asymmetry of current damage rules. Altering the rules so that an innovator who wins a preliminary injunction on a patent ultimately declared invalid pays both lost profits to the imitator and a fine equal to lost consumer surplus creates efficient incentives." Copyright 2007, The Author(s) Journal Compilation (c) 2007 Blackwell Publishing.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Journal of Economics & Management Strategy.
Volume (Year): 16 (2007)
Issue (Month): 2 (06)
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Web page: http://www.kellogg.northwestern.edu/research/journals/JEMS/
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- Francisco Ramos Romeu, 2010. "An economic theory of the regulation of preliminary measures," European Journal of Law and Economics, Springer, vol. 30(3), pages 267-300, December.
- Katharine Rockett, 2009. "Property Rights and Invention," Economics Discussion Papers 663, University of Essex, Department of Economics.
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