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Business Method Patents, Innovation, and Policy

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Author Info
Bronwyn H. Hall (Department of Economics, University of California, Berkeley)

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Abstract

The trickle of business method patents issued by the United States Patent Office became a flood after the State Street Bank decision in 1998. Many scholars, both legal and economic, have critiqued both the quality of these patents and the decision itself. This paper discusses the likely impact of these patents on innovation. It first reviews the facts about business method and internet patents briefly and then explores what economists know about the relationship between the patent system and innovation. It concludes by finding some consensus in the literature about the problems associated with this particular expansion of patentable subject matter, highlighting remaining areas of disagreement, and suggesting where there are major gaps in our understanding of the impact of these patents.

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File URL: http://129.3.20.41/eps/le/papers/0401/0401001.pdf
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Publisher Info
Paper provided by EconWPA in its series Law and Economics with number 0401001.

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Length: 28 pages
Date of creation: 08 Jan 2004
Date of revision:
Handle: RePEc:wpa:wuwple:0401001

Note: 28 pages, Adobe.pdf
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Web page: http://129.3.20.41

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Find related papers by JEL classification:
K3 - Law and Economics - - Other Substantive Areas of Law
O0 - Economic Development, Technological Change, and Growth - - General
L4 - Industrial Organization - - Antitrust Issues and Policies

This paper has been announced in the following NEP Reports:

This item is featured on the following reading lists:
  1. Socio-Economics of Innovation
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. Lanjouw, Jean O & Schankerman, Mark, 2001. "Enforcing Intellectual Property Rights," CEPR Discussion Papers 3093, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  2. Lerner, Josh, 1995. "Patenting in the Shadow of Competitors," Journal of Law & Economics, University of Chicago Press, vol. 38(2), pages 463-95, October.
  3. Jerry R. Green & Suzanne Scotchmer, 1995. "On the Division of Profit in Sequential Innovation," RAND Journal of Economics, The RAND Corporation, vol. 26(1), pages 20-33, Spring. [Downloadable!] (restricted)
    Other versions:
  4. Bronwyn H. Hall & Stuart J.H. Graham & Dietmar Harhoff, 2003. "Prospects for Improving U.S. Patent Quality via Post-grant Opposition," NBER Working Papers 9731, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. Jonathan Levin & Richard Levin, . "Patent Oppositions," Yale Law School John M. Olin Center for Studies in Law, Economics, and Public Policy Working Paper Series yale_lepp-1005, Yale Law School John M. Olin Center for Studies in Law, Economics, and Public Policy. [Downloadable!]
  6. Jean O. Lanjouw & Iain Cockburn, 2000. "Do Patents Matter?: Empirical Evidence after GATT," NBER Working Papers 7495, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Baldwin, John R. & Hanel, Peter & Sabourin, David, 2000. "Determinants of Innovative Activity in Canadian Manufacturing Firms: The Role of Intellectual Property Rights," Analytical Studies Branch Research Paper Series 2000122e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  8. Jean Olson Lanjouw & Mark Schankerman, 2001. "Enforcing Intellectual Property Rights," NBER Working Papers 8656, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Richard C. Levin & Alvin K. Klevorick & Richard R. Nelson & Sidney G. Winter, 1988. "Appropriating the Returns from Industrial R&D," Cowles Foundation Discussion Papers 862, Cowles Foundation, Yale University. [Downloadable!]
  10. Petra Moser, 2003. "How Do Patent Laws Influence Innovation? Evidence from Nineteenth-Century World Fairs," NBER Working Papers 9909, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  11. Robert M. Hunt, 2001. "You can patent that? Are patents on computer programs and business methods good for the new economy?," Business Review, Federal Reserve Bank of Philadelphia, issue Q1, pages 5-15. [Downloadable!]
  12. Jean Olson Lanjouw & Mark Schankerman, 2001. "Enforcing Intellectual Property Rights," STICERD - Economics of Industry Papers 30, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE. [Downloadable!]
  13. Suzanne Scotchmer, 1996. "Protecting Early Innovators: Should Second-Generation Products Be Patentable?," RAND Journal of Economics, The RAND Corporation, vol. 27(2), pages 322-331, Summer. [Downloadable!] (restricted)
Full references

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. Bronwyn H. Hall & Stuart J. H. Graham & Dietmar Harhoff & David C. Mowery, 2004. "Prospects for Improving U.S. Patent Quality via Post-grant Opposition," Law and Economics 0401002, EconWPA. [Downloadable!]
    Other versions:
  2. Bronwyn H. Hall & Megan MacGarvie, 2006. "The Private Value of Software Patents," NBER Working Papers 12195, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Oecd, 2004. "Patents and Innovation: Trends and Policy Challenges," Levine's Working Paper Archive 122247000000000502, UCLA Department of Economics. [Downloadable!]
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