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Cost-Benefit Analysis of the Community Patent

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  • Danguy, Jérôme
  • van Pottelsberghe de la Potterie, Bruno

Abstract

For more than 40 years, governments and professional associations have acted, voted or lobbied against the implementation of the Community Patent (COMPAT). The econometric results and simulations presented in this paper suggest that, thanks to its attractiveness in terms of market size and a sound renewal fee structure, the COMPAT would drastically reduce the relative patenting costs for applicants while generating more income for the European Patent Office and most National Patent Offices. The loss of economic rents (€400 million would be lost by patent attorneys, translators and lawyers) and the drop of controlling power by national patent offices elucidate further the observed resistance to the Community Patent.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7631.

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Date of creation: Jan 2010
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Handle: RePEc:cpr:ceprdp:7631

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Keywords: community patent; maintenance rate; patent cost; patent systems; renewal fees;

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References

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  1. Harhoff, Dietmar & Hoisl, Karin & Reichl, Bettina & van Pottelsberghe, Bruno, 2007. "Patent Validation at the Country Level - The Role of Fees and Translation costs," CEPR Discussion Papers 6565, 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.
  3. Guellec, Dominique & van Pottelsberghe de la Potterie, Bruno, 2007. "The Economics of the European Patent System: IP Policy for Innovation and Competition," OUP Catalogue, Oxford University Press, number 9780199216987, July.
  4. Gaétan de Rassenfosse & Bruno Van Pottelsberghe, 2008. "A Policy Insight into the R&D-Patent Relationship," Working Papers CEB 08-008.RS, ULB -- Universite Libre de Bruxelles.
  5. Marc Baudry & Béatrice Dumont, 2006. "Patent Renewals as Options: Improving the Mechanism for Weeding Out Lousy Patents," Review of Industrial Organization, Springer, vol. 28(1), pages 41-62, 02.
  6. Mejer, Malwina & van Pottelsberghe, Bruno, 2008. "The London Agreement and the Cost of Patenting in Europe," CEPR Discussion Papers 7033, C.E.P.R. Discussion Papers.
  7. Archontopoulos, Eugenio & Guellec, Dominique & Stevnsborg, Niels & van Pottelsberghe, Bruno & van Zeebroeck, Nicolas, 2006. "When Small is Beautiful: Measuring the Evolution and Consequences of the Voluminosity of Patent Applications at the EPO," CEPR Discussion Papers 5970, C.E.P.R. Discussion Papers.
  8. Bruno Van Pottelsberghe & Didier François, 2009. "The cost factor in patent systems," ULB Institutional Repository 2013/13422, ULB -- Universite Libre de Bruxelles.
  9. Harhoff, Dietmar & Hoisl, Karin & van Pottelsberghe de la Potterie, Bruno, 2009. "Languages, Fees and the International Scope of Patenting," Discussion Papers in Business Administration 10456, University of Munich, Munich School of Management.
  10. de Rassenfosse, Gaétan & van Pottelsberghe, Bruno, 2007. "Per un Pugno di Dollari: A first Look at the Price Elasticity of Patents," CEPR Discussion Papers 6499, C.E.P.R. Discussion Papers.
  11. Bruno van Pottelsberghe, . "Lost property: The European patent system and why it doesn't work," Blueprints, Bruegel, number 312, 02.
  12. Bruno Van Pottelsberghe & George Lazaridis, 2007. "The rigour of EPO's patentability criteria: an insight into the induced withdrawals," ULB Institutional Repository 2013/6189, ULB -- Universite Libre de Bruxelles.
  13. Nicolas van Zeebroeck, 2011. "Long Live Patents: the Increasing Life Expectancy of Patent Applications and its Determinants," Review of Economics and Institutions, Università di Perugia, Dipartimento Economia, Finanza e Statistica, vol. 2(3).
  14. Ginarte, Juan C. & Park, Walter G., 1997. "Determinants of patent rights: A cross-national study," Research Policy, Elsevier, vol. 26(3), pages 283-301, October.
  15. Gaetan de Rassenfosse & Bruno van Pottelsberghe de la Potterie, 2012. "On the Price Elasticity of Demand for Patents," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 74(1), pages 58-77, 02.
  16. Malwina Mejer & Bruno Van Pottelsberghe, 2009. "Economic Incongruities in the European Patent System," Working Papers ECARES 2009_003, ULB -- Universite Libre de Bruxelles.
  17. Dominique Guellec & Bruno Van Pottelsberghe & Nicolas van Zeebroeck, 2007. "Patent as a market instrument," ULB Institutional Repository 2013/60728, ULB -- Universite Libre de Bruxelles.
  18. Marc Baudry & Béatrice Dumont, 2009. "A Bayesian Real Option Approach to Patents and Optimal Renewal Fees," Working Papers hal-00419330, HAL.
  19. Joshua S. Gans & Stephen P. King & Ryan Lampe, 2004. "Patent Renewal Fees and Self-Funding Patent Offices," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 0(1), pages 6.
  20. Nicolas van Zeebroeck, 2009. "From patent renewals to applications survival: do portfolio management strategies play a role in patent length?," Working Papers CEB 09-028.RS, ULB -- Universite Libre de Bruxelles.
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Citations

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Cited by:
  1. 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.
  2. Spithoven, André & Teirlinck, Peter, 2011. "The relation between the firm’s IP strategy and occupation and qualification of the R&D labour force," Working Papers 2011/21, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
  3. Prud'homme, Dan, 2012. "Dulling the Cutting Edge: How Patent-Related Policies and Practices Hamper Innovation in China," MPRA Paper 43299, University Library of Munich, Germany, revised Dec 2012.
  4. 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.

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