To Patent Or Not To Patent: The Role Of Optimal Patent Breadth And The Decision To Defend The Patent Right
AbstractThe paper examines the relationship between the innovator's patenting and patent breadth decisions as well as how these two decisions affect, and are affected by, the innovator's ability to enforce her patent rights. An important feature of the model is that the entrant may be able, by his choice of location in product space, to affect the innovator's decision to defend her patent. An interesting finding of the paper is that the innovator might find it optimal to patent her innovation even when she chooses to not defend her patent by invoking a trial when patent infringement occurs. The paper also shows that, in most cases, the greater is the entrant's R&D effectiveness, the smaller is the innovator's incentive to patent her product. If patenting occurs, however, the greater is R&D effectiveness, the greater is the patent breadth that could be chosen without triggering infringement.
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Bibliographic InfoPaper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2005 Annual meeting, July 24-27, Providence, RI with number 19180.
Date of creation: 2005
Date of revision:
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- Horstmann, Ignatius & MacDonald, Glenn M & Slivinski, Alan, 1985. "Patents as Information Transfer Mechanisms: To Patent or (Maybe) Not to Patent," Journal of Political Economy, University of Chicago Press, vol. 93(5), pages 837-58, October.
- Waterson, Michael, 1990. "The Economics of Product Patents," American Economic Review, American Economic Association, vol. 80(4), pages 860-69, September.
- Lanjouw, Jean O & Schankerman, Mark, 2001. "Characteristics of Patent Litigation: A Window on Competition," RAND Journal of Economics, The RAND Corporation, vol. 32(1), pages 129-51, Spring.
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