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The Court of Appeals for the Federal Circuit’s Impact on Patent Litigation

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  • Matthew D. Henry
  • John L. Turner

Abstract

More than 20 years after the establishment of the Court of Appeals for the Federal Circuit (CAFC), research has yet to explain accurately the new court’s impact on patent litigation, patenting, and inventive activity. To address this shortcoming in the literature, we analyze a novel data set that permits us to consider separately the issues of validity and infringement in comparing the tendencies of the CAFC with those of its predecessor appeals courts. Our analysis of district and appellate decisions spanning 1953–2002 yields a recasting of the “pro-patent” nature of the CAFC: while it has been significantly more reluctant than its predecessors to affirm decisions of invalidity, it has not been more reluctant to affirm “not infringed” decisions. Because of the CAFC’s tendencies, district courts have decided patents to be invalid significantly less often, patentees have appealed decisions of invalidity significantly more often, and infringement has become the more frequently decisive inquiry.

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File URL: http://www.journals.uchicago.edu/cgi-bin/resolve?id=doi:10.1086/498834
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Bibliographic Info

Article provided by University of Chicago Press in its journal The Journal of Legal Studies.

Volume (Year): 35 (2006)
Issue (Month): 1 (01)
Pages: 85-117

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Handle: RePEc:ucp:jlstud:v:35:y:2006:p:85-117

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Web page: http://www.journals.uchicago.edu/JLS/

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Cited by:
  1. Cremers, Katrin & Ernicke, Max & Gaessler, Fabian & Harhoff, Dietmar & Helmers, Christian & McDonagh, Luke & Schliessler, Paula & Van Zeebroeck, Nicolas, 2013. "Patent litigation in Europe," ZEW Discussion Papers 13-072, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. Marco, Alan C., 2005. "Learning by Suing: Structural Estimates of Court Errors in Patent Litigation," Vassar College Department of Economics Working Paper Series 68, Vassar College Department of Economics.
  3. Galasso, Alberto & Schankerman, Mark, 2008. "Patent Thickets and the Market for Innovation: Evidence from Settlement of Patent Disputes," CEPR Discussion Papers 6946, C.E.P.R. Discussion Papers.
  4. Marco, Alan C., 2006. "The Value of Certainty in Intellectual Property Rights: Stock Market Reactions to Patent Litigation," Vassar College Department of Economics Working Paper Series 82, Vassar College Department of Economics.
  5. Alberto Galasso & Mark Schankerman, 2008. "Patent thickets and the market for innovation: evidence from settlement of patent disputes," LSE Research Online Documents on Economics 25474, London School of Economics and Political Science, LSE Library.
  6. Alberto Galasso & Mark Schankerman, 2008. "Patent Thickets and the Market for Innovation: Evidence from Settlement of Patent Disputes," CEP Discussion Papers dp0889, Centre for Economic Performance, LSE.
  7. Amore, Mario Daniele & Schneider, Cédric & Žaldokas, Alminas, 2013. "Credit supply and corporate innovation," Journal of Financial Economics, Elsevier, vol. 109(3), pages 835-855.
  8. Galasso, Alberto & Schankerman, Mark, 2013. "Patents and Cumulative Innovation:Causal Evidence from the Courts," IIR Working Paper 13-16, Institute of Innovation Research, Hitotsubashi University.

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