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Cost-Benefit Analysis of the Community Patent

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  • Jérôme Danguy
  • Bruno Van Pottelsberghe

Abstract

For more than 40 years, governments and professional associations have acted, voted or lobbied against the implementation of the Community Patent (COMPAT, officially called the EU Patent). 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 ULB -- Universite Libre de Bruxelles in its series ULB Institutional Repository with number 2013/101071.

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Date of creation: Apr 2011
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Publication status: Published in: Journal of Benefit-Cost Analysis (2011) v.2 n° 2
Handle: RePEc:ulb:ulbeco:2013/101071

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Keywords: patent systems; community patent; patenting cost; renewal fees; m;

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References

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  1. Francois, Didier & van Pottelsberghe, Bruno, 2006. "The Cost Factor in Patent Systems," CEPR Discussion Papers 5944, C.E.P.R. Discussion Papers.
  2. 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.
  3. de Rassenfosse, Gaetan & van Pottelsberghe de la Potterie, Bruno, 2009. "A policy insight into the R&D-patent relationship," Research Policy, Elsevier, vol. 38(5), pages 779-792, June.
  4. Gaétan de Rassenfosse & Bruno Van Pottelsberghe, 2008. "On the price elasticity of demand for patents," Working Papers CEB 08-031.RS, ULB -- Universite Libre de Bruxelles.
  5. 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.
  6. Malwina Mejer & Bruno van Pottelsberghe de la Potterie, 2009. "Economic incongruities in the European patent system," Working Papers 2009/31, Institut d'Economia de Barcelona (IEB).
  7. Harhoff, Dietmar & Hoisl, Karin & Reichl, Bettina & van Pottelsberghe de la Potterie, Bruno, 2009. "Patent validation at the country level--The role of fees and translation costs," Research Policy, Elsevier, vol. 38(9), pages 1423-1437, November.
  8. 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.
  9. Bruno van Pottelsberghe, . "Lost property: The European patent system and why it doesn't work," Blueprints, Bruegel, number 312, June.
  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 & Eugenio Archontopoulos & Dominique Guellec & Niels Stevnsborg & 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, ULB -- Universite Libre de Bruxelles.
  12. Gans Joshua S & King Stephen P & Lampe Ryan, 2004. "Patent Renewal Fees and Self-Funding Patent Offices," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 4(1), pages 1-15, July.
  13. 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.
  14. 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.
  15. 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.
  16. Bruno Van Pottelsberghe & Dominique Guellec, 2007. "The economics of the European patent system: IP policy for innovation and competition," ULB Institutional Repository 2013/6183, ULB -- Universite Libre de Bruxelles.
  17. Nicolas van Zeebroeck, 2011. "Long live patents: the increasing life expectancy of patent applications and its determinants," ULB Institutional Repository 2013/96255, 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. Dominique Guellec & Bruno Van Pottelsberghe & Nicolas van Zeebroeck, 2007. "Patent as a market instrument," ULB Institutional Repository 2013/60728, ULB -- Universite Libre de Bruxelles.
  20. 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.
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Citations

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Cited by:
  1. Bruno van Pottelsberghe, 2010. "The quality factor in patent systems," Working Papers 422, Bruegel.
  2. Prud'homme, Dan, 2012. "A statistical analysis of China's patent quality situation and larger innovation ecosystem," MPRA Paper 51619, University Library of Munich, Germany.
  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. 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.
  5. Prud'homme, Dan, 2012. "How certain indigenous innovation and other patent policies hamper innovation in China," MPRA Paper 51710, University Library of Munich, Germany, revised Dec 2012.
  6. Gaetan de Rassenfosse & Bruno van Pottelsberghe de la Potterie, 2013. "The Role Of Fees In Patent Systems: Theory And Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 27(4), pages 696-716, 09.
  7. Picard, Pierre M. & van Pottelsberghe de la Potterie, Bruno, 2013. "Patent office governance and patent examination quality," Journal of Public Economics, Elsevier, vol. 104(C), pages 14-25.

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