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Languages, Fees and the International Scope of Patenting

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  • Harhoff, Dietmar
  • Hoisl, Karin
  • van Pottelsberghe de la Potterie, Bruno

Abstract

This paper analyzes firms’ choices regarding the geographic scope of patent protection within the European patent system. We develop an econometric model at the patent level to quantify the impact of office fees and translation costs on firms’ decision to validate a patent in a particular country once it has been granted by the EPO. These costs have been disregarded in previous studies. The results suggest that both translation costs and fees for validation and renewals have a strong influence on the behavior of applicants. The estimates are then employed to simulate the impact of the London Protocol, a recent policy reform which reduces translation requirements in the European patent system. National validations of patents granted by the EPO are estimated to increase by 29%.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7241.

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Date of creation: Mar 2009
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Handle: RePEc:cpr:ceprdp:7241

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Keywords: patent fees; patent validation; patents; renewal fees; translation costs;

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References

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  1. Bosworth, Derek L., 1984. "Foreign patent flows to and from the United Kingdom," Research Policy, Elsevier, vol. 13(2), pages 115-124, April.
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  3. Arundel, Anthony, 2001. "The relative effectiveness of patents and secrecy for appropriation," Research Policy, Elsevier, vol. 30(4), pages 611-624, April.
  4. Gambardella, Alfonso & Harhoff, Dietmar & Verspagen, Bart, 2008. "The Value of European Patents," CEPR Discussion Papers 6848, C.E.P.R. Discussion Papers.
  5. Gaétan de Rassenfosse & Bruno van Pottelsberghe de la Potterie, 2007. "Per un pugno di dollari: a first look at the price elasticity of patents," Oxford Review of Economic Policy, Oxford University Press, vol. 23(4), pages 558-604, Winter.
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  7. Deng, Yi, 2007. "Private value of European patents," European Economic Review, Elsevier, vol. 51(7), pages 1785-1812, October.
  8. Bruno van Pottelsberghe, 2008. "The London Agreement and the cost of patenting in Europe," Working Papers 264, Bruegel.
  9. Carine Peeters & Bruno Van Pottelsberghe, 2006. "Innovation strategy and the patenting behavior of firms," ULB Institutional Repository 2013/167553, ULB -- Universite Libre de Bruxelles.
  10. Gaétan de Rassenfosse & Bruno Van Pottelsberghe, 2008. "On the Price Elasticity of Demand for Patents," Working Papers ECARES 2008_031, ULB -- Universite Libre de Bruxelles.
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  13. 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.
  14. Francois, Didier & van Pottelsberghe, Bruno, 2006. "The Cost Factor in Patent Systems," CEPR Discussion Papers 5944, C.E.P.R. Discussion Papers.
  15. GINSBURGH, Victor & ORTUNO-ORTIN, Ignacio & WEBER, Shlomo, 2004. "Disenfranchisement in linguistically diverse societies. The case of the European Union," CORE Discussion Papers 2004080, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  16. Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2000. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)," NBER Working Papers 7552, National Bureau of Economic Research, Inc.
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  18. Schankerman, Mark & Pakes, Ariel, 1986. "Estimates of the Value of Patent Rights in European Countries during the Post-1950 Period," Economic Journal, Royal Economic Society, vol. 96(384), pages 1052-76, December.
  19. Deng, Yi, 2005. "Private Value of European Patents," Departmental Working Papers 0513, Southern Methodist University, Department of Economics.
  20. Sláma, Jirí, 1981. "Analysis by means of a gravitation model of international flows of patent applications in the period 1967-1978," World Patent Information, Elsevier, vol. 3(1), pages 2-8, January.
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  22. Michael E. Porter & Scott Stern, 2000. "Measuring the "Ideas" Production Function: Evidence from International Patent Output," NBER Working Papers 7891, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Danguy Jérôme & van Pottelsberghe de la Potterie Bruno, 2011. "Cost-Benefit Analysis of the Community Patent," Journal of Benefit-Cost Analysis, De Gruyter, vol. 2(2), pages 1-43, April.
  2. van Pottelsberghe de la Potterie, Bruno, 2010. "The quality factor in patent systems," CEPR Discussion Papers 7921, C.E.P.R. Discussion Papers.
  3. Bruno van Pottelsberghe, 2008. "The London Agreement and the cost of patenting in Europe," Working Papers 264, Bruegel.
  4. Gaétan de Rassenfosse & Bruno Van Pottelsberghe, 2010. "The Role of Fees in Patent Systems: Theory and Evidence," Working Papers ECARES ECARES 2010-023, ULB -- Universite Libre de Bruxelles.

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