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Determinants of Opposition Against EPO Patent Grants - The Case of Biotechnology and Pharmaceuticals

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Harhoff, Dietmar
Reitzig, Markus

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Abstract

We analyse the determinants of opposition to biotechnology and pharmaceutical patents granted by the European Patent Office between 1978–96. Opposition can be considered an early form of patent validity challenge suit. In our sample, 8.6% of the patents are attacked in opposition proceedings. Using citation and patent family indicators we show that valuable patents are more likely to be attacked, and that opposition is particularly frequent in areas with strong cumulative patent numbers and with high technical or market uncertainty. We comment on the implications of these results for the design of the patent and litigation system.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3645.

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Date of creation: Nov 2002
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Handle: RePEc:cpr:ceprdp:3645

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Related research
Keywords: European Patent Office intellectual property rights litigation patents

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Find related papers by JEL classification:
K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
L00 - Industrial Organization - - General - - - General
L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
  1. Fred Ramb & Markus Reitzig, 2005. "Who do you trust while Shares are on a Roller-Coaster Ride? Balance Sheet and Patent Data as Sources of Investor Information During Volatile Market Times," DRUID Working Papers 05-15, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies. [Downloadable!]
  2. Graham, Stuart J.H. & Harhoff, Dietmar, 2006. "Can Post-Grant Reviews Improve Patent System Design? A Twin Study of US and European Patents," CEPR Discussion Papers 5680, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  3. Amalia Yiannaka & Murray Fulton, 2003. "Strategic Patent Breadth And Entry Deterrence With Drastic Product Innovations," Levine's Bibliography 666156000000000362, UCLA Department of Economics. [Downloadable!]
  4. Harhoff, Dietmar & Hoisl, Karin, 2006. "Everything you Always Wanted to Know About Inventors (But Never Asked): Evidence from the PatVal-EU Survey," Discussion Papers in Business Administration 1261, University of Munich, Munich School of Management. [Downloadable!]
    Other versions:
  5. Paul H. Jensen & Alfons Palangkaraya & Elizabeth Webster, 2005. "Patent Application Outcomes across the Trilateral Patent Offices," Melbourne Institute Working Paper Series wp2005n05, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
  6. Myriam Mariani & Marzia Romanelli, 2006. ""Stacking" or "Picking" Patents? The Inventors' Choice Between Quantity and Quality," LEM Papers Series 2006/06, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. [Downloadable!]
  7. Stuart J. H. Graham & Bronwyn H. Hall & Dietmar Harhoff & David C. Mowery, 2003. "Post-Issue Patent "Quality Control": A Comparative Study of US Patent Re-examinations and European Patent Oppositions," Industrial Organization 0303009, EconWPA. [Downloadable!]
    Other versions:
  8. Jesper Lindgaard Christensen, 2008. "The IPR System, Venture Capital and Capital Markets – Contributions and Distortions of Small Firm Innovation?," DRUID Working Papers 08-03, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies. [Downloadable!]
  9. Alfonso Gambardella & Paola Giuri & Alessandra Luzzi, 2006. "The Market for Patents in Europe," LEM Papers Series 2006/04, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. [Downloadable!]
    Other versions:
  10. Bronwyn H. Hall & Stuart J.H. Graham & Dietmar Harhoff, 2003. "Prospects for Improving U.S. Patent Quality via Post-grant Opposition," NBER Working Papers 9731, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  11. Stefan Wagner, 2004. "Business Method Patents in Europe and their Strategic Use – Evidence from Franking Device Manufacturers," Law and Economics 0410003, EconWPA. [Downloadable!]
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  12. Stuart Graham & David Mowrey, 2004. "Submarines in software? continuations in US software patenting in the 1980s and 1990s," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 13(5), pages 443-456, July. [Downloadable!] (restricted)
  13. Eleftherios Sapsalis & Bruno Van Pottelsberghe & Ran Navon, 2006. "Academic Patenting vs. Industry Patenting: An in-depth analysis of what determines patent value," Working Papers CEB 05-008.RS, Université Libre de Bruxelles, Solvay Business School, Centre Emile Bernheim (CEB). [Downloadable!]
  14. Eleftherios Sapsalis & Bruno Van Pottelsberghe, 2005. "The institutional sources of knowledge and the value of academic patents," Working Papers CEB 04-003.RS, Université Libre de Bruxelles, Solvay Business School, Centre Emile Bernheim (CEB). [Downloadable!]
    Other versions:
  15. Ramb, Fred & Reitzig, Markus, 2004. "Who do you trust while bubbles grow and blow? : A comparative analysis of the explanatory power of accounting and patent information for the market values of German firms," Discussion Paper Series 1: Economic Studies 2004,17, Deutsche Bundesbank, Research Centre. [Downloadable!]
  16. Palomeras, Neus, 2003. "Sleeping patents: any reason to wake up?," IESE Research Papers D/506, IESE Business School. [Downloadable!]
  17. Blind, Knut & Cremers, Katrin & Mueller, Elisabeth, 2007. "The Influence of Strategic Patenting on Companies’ Patent Portfolios," ZEW Discussion Papers 07-013, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  18. Stuart J Graham, 2004. "Secrecy in the Shadow of Patenting: Firms Use of Continuation Patents, 1975-1994," Levine's Working Paper Archive 228400000000000035, UCLA Department of Economics. [Downloadable!]
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