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Patent Validation at the Country Level - The Role of Fees and Translation costs

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  • Harhoff, Dietmar
  • Hoisl, Karin
  • Reichl, Bettina
  • van Pottelsberghe, Bruno

Abstract

One feature of the European patent system that is heavily criticized nowadays is related to its complex fragmentation and the induced cost burden for applicants. Once a patent is granted by the EPO, the assignee must validate (and often translate) it and pay the renewal fees to keep it in force in each country in which the applicant seeks protection. The objective of this paper is to assess to what extent validation and renewal fees as well as translation costs affect the validation behaviour of applicants. We rely on a gravity model that aims at explaining patent flows between inventor and target countries within the European patent system. The results show that the size of countries, their wealth and the distance between their capital cities are significant determinants of patent flows. Validation fees and renewal fees further affect the validation behaviour of applicants. Translation costs seem to have an impact as well. The important role played by fees suggests that the implementation of cost-reducing policy interventions like the London Protocol would induce a significant increase in the number of patents validated in each European country.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6565.

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Date of creation: Nov 2007
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Handle: RePEc:cpr:ceprdp:6565

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Keywords: gravity model; patent fees; renewal fees; validation fees;

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References

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  1. Harhoff, Dietmar & Wagner, Stefan, 2005. "Modelling the duration of patent examination at the European Patent Office," CEPR Discussion Papers 5283, C.E.P.R. Discussion Papers.
  2. Bruno Van Pottelsberghe & Nicolas van Zeebroeck, 2008. "A brief history of space and time: the scope-year index as a patent value indicator based on families and renewals," ULB Institutional Repository 2013/6383, ULB -- Universite Libre de Bruxelles.
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Citations

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Cited by:
  1. Maurseth, Per Botolf & Svensson, Roger, 2012. "Micro Evidence on International Patenting," Working Paper Series 934, Research Institute of Industrial Economics.
  2. Bruno van Pottelsberghe de la Potterie, 2011. "The quality factor in patent systems," Industrial and Corporate Change, Oxford University Press, vol. 20(6), pages 1755-1793, December.
  3. Bruno Van Pottelsberghe & Matthis de Saint-Georges, 2011. "A Quality Index for Patent Systems," Working Papers ECARES ECARES 2011-010, ULB -- Universite Libre de Bruxelles.
  4. Bruno van Pottelsberghe, 2008. "The London Agreement and the cost of patenting in Europe," Working Papers 264, Bruegel.
  5. Bruno van Pottelsberghe & Jérôme Danguy, 2009. "Cost Benefit Analysis of the Community Patent," Working Papers 366, Bruegel.
  6. Gaétan de Rassenfosse & Hélène Dernis & Dominique Guellec & Picci Lucio & Bruno Van Pottelsberghe, 2012. "The worldwide count of priority patents: A new indicator of inventive activity," Working Papers ECARES ECARES 2012-019, ULB -- Universite Libre de Bruxelles.
  7. Nicholas, Tom, 2011. "Cheaper patents," Research Policy, Elsevier, vol. 40(2), pages 325-339, March.
  8. Filippetti, Andrea & Peyrache, Antonio, 2011. "The Patterns of Technological Capabilities of Countries: A Dual Approach using Composite Indicators and Data Envelopment Analysis," World Development, Elsevier, vol. 39(7), pages 1108-1121, July.
  9. Bas Straathof & Sander van Veldhuizen, 2012. "Market size, institutions, and the value of rights provided by patents," CPB Discussion Paper 226, CPB Netherlands Bureau for Economic Policy Analysis.
  10. de Rassenfosse, Gaétan & van Pottelsberghe de la Potterie, Bruno, 2010. "The role of fees in patent systems: Theory and evidence," CEPR Discussion Papers 7879, C.E.P.R. Discussion Papers.
  11. Travis J. Lybbert & Nikolas J. Zolas, 2012. "Getting Patents and Economic Data to Speak to Each Other: An 'Algorithmic Links with Probabilities' Approach for Joint Analyses of Patenting and Economic Activity," Working Papers 12-16, Center for Economic Studies, U.S. Census Bureau.

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