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The Cost Factor in Patent Systems

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Author Info
Bruno van Pottelsberghe () (Centre Emile Bernheim, Solvay Business School, Université Libre de Bruxelles, Brussels and DULBEA, Université Libre de Bruxelles.)
Didier François (Solvay Business School, Université Libre de Bruxelles, Brussels)

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Abstract

The objective of this paper is to assess whether and to what extent the cost of patenting affects the demand for patents. The empirical analysis, which focuses on the patent systems of the USA, Japan, and Europe during the year 2003, leads to the following methodological and empirical observations: i) after the grant, the translation, validation and transaction costs induced by an effective protection in several European countries witness a highly fragmented and very expensive European market for intellectual property; ii) for a proper international comparison, the size of the market and the average number of claims must be accounted for; iii) when the cost per claim per capita (the 3C-index) is considered, a negative linear relationship appears between the cost of patenting and the number of claims that are filed; iv) for a patent designating 13 European countries, the 3C-index is about 10 (2) times higher than in the US (Japanese) system (for process and translation costs up to the grant); v) The European market being more than twice as large as the US market in terms of inhabitants, the 3C-index suggests that there would be a clear justification for higher nominal examination fees at the EPO, that would ensure a rigorous granting process.

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File URL: http://www.solvay.edu/EN/Research/Bernheim/documents/wp06002.pdf
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File Function: First version, 2006
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Publisher Info
Paper provided by Université Libre de Bruxelles, Solvay Brussels School of Economics and Management, Centre Emile Bernheim (CEB) in its series Working Papers CEB with number 06-002.RS.

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Length: 33 pages
Date of creation: 2006
Date of revision:
Handle: RePEc:sol:wpaper:06-002

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Related research
Keywords: patents; cost elasticity; cost per claim per capita; patent systems.;

Other versions of this item:

Find related papers by JEL classification:
P14 - Economic Systems - - Capitalist Systems - - - Property Rights
P51 - Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems
O34 - Economic Development, Technological Change, and Growth - - Technological Change - - - Intellectual Property Rights

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References listed on IDEAS
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. Carine Peeters & Bruno Pottelsberghe de la Potterie, 2006. "Innovation strategy and the patenting behavior of firms," Journal of Evolutionary Economics, Springer, vol. 16(1), pages 109-135, April. [Downloadable!] (restricted)
  2. Archontopoulos, Eugenio & Guellec, Dominique & Stevnsborg, Niels & van Pottelsberghe de la Potterie, Bruno & van Zeebroeck, Nicolas, 2007. "When small is beautiful: Measuring the evolution and consequences of the voluminosity of patent applications at the EPO," Information Economics and Policy, Elsevier, vol. 19(2), pages 103-132, June. [Downloadable!] (restricted)
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  3. Tong, Xuesong & Frame, J. Davidson, 1994. "Measuring national technological performance with patent claims data," Research Policy, Elsevier, vol. 23(2), pages 133-141, March. [Downloadable!] (restricted)
  4. Guellec, Dominique & Pottelsberghe de la Potterie, Bruno v., 2000. "Applications, grants and the value of patent," Economics Letters, Elsevier, vol. 69(1), pages 109-114, October. [Downloadable!] (restricted)
  5. Emmanuel Duguet & Isabelle Kabla, 1998. "Appropriation Strategy and the Motivations to Use the Patent System: An Econometric Analysis at the Firm Level in French Manufacturing," Annales d'Economie et de Statistique, ADRES, issue 49-50, pages 12, Janvier-J. [Downloadable!]
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Cited by:
(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. van Pottelsberghe, Bruno & van Zeebroeck, Nicolas, 2007. "A Brief History of Space and Time: the Scope-Year Index as a Patent Value Indicator Based on Families and Renewals," CEPR Discussion Papers 6321, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  2. Eugenio Archontopoulos & Dominique Guellec & Niels Stevnsborg & Bruno van Pottelsberghe & Nicolas van Zeebroeck, 2006. "When small is beautiful: measuring the evolution and consequences of the voluminosity of patent applications at the EPO," Working Papers CEB 06-019.RS, Université Libre de Bruxelles, Solvay Brussels School of Economics and Management, Centre Emile Bernheim (CEB). [Downloadable!]
    Other versions:
  3. Malwina Mejer & Bruno van Pottelsberghe de la Potterie, 2008. "The London Agreement and the Cost of Patenting in Europe," ECARES Working Papers 2008_032, Université Libre de Bruxelles, Ecares. [Downloadable!]
    Other versions:
  4. Jan Fidrmuc & Victor Ginsburgh & Schlomo Weber, 2007. "Ever Closer Union or Babylonian Discord?," William Davidson Institute Working Papers Series wp887, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  5. George Lazaridis & Bruno Van Pottelsberghe, 2007. "The rigour of EPO's patentability criteria: An insight into the "induced withdrawals"," Working Papers CEB 07-007.RS, Université Libre de Bruxelles, Solvay Brussels School of Economics and Management, Centre Emile Bernheim (CEB). [Downloadable!]
  6. 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, Université Libre de Bruxelles, Solvay Brussels School of Economics and Management, Centre Emile Bernheim (CEB). [Downloadable!]
  7. Jan Fidrmuc & Victor Ginsburgh & Shlomo Weber, 2007. "Ever Closer Union or Babylonian Discord? The Official-language Problem in the European Union," CEDI Discussion Paper Series 07-07, Centre for Economic Development and Institutions(CEDI), Brunel University. [Downloadable!]
    Other versions:
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