Are Patent Litigation Insurances Fit for the Dynamics of Innovation?
AbstractPatent insurance policies allow firms to externalise the legal cost in case of conflicts. These litigation insurances may incite innovators to sue more often, which would increase the social cost of litigation. By modelling a patent file, we show that these patent litigation insurances incite innovators to claim for wider breadth patent too. Wider breadth patents could lead to an increased number of legal conflicts but could also lead to a slackening in the process of innovation improvement. We come to the conclusion that the effects of these insurance schemes on the welfare are really indeterminate.
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Bibliographic InfoArticle provided by SIPI Spa in its journal Rivista di Politica Economica.
Volume (Year): 95 (2005)
Issue (Month): 5 (September-October)
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- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
- G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
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