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Preliminary Injunctions and Damage Rules in Patent Law


  • John R. Boyce
  • Aidan Hollis


"This paper shows that preliminary injunctions may be sought in patent cases to obtain market power during the period of the injunction and are likely to be sought only where there is a small probability that the patent will be ultimately found valid. Both patentee and alleged infringer benefit from a preliminary injunction. This is an artifact of the asymmetry of current damage rules. Altering the rules so that an innovator who wins a preliminary injunction on a patent ultimately declared invalid pays both lost profits to the imitator and a fine equal to lost consumer surplus creates efficient incentives." Copyright 2007, The Author(s) Journal Compilation (c) 2007 Blackwell Publishing.

Suggested Citation

  • John R. Boyce & Aidan Hollis, 2007. "Preliminary Injunctions and Damage Rules in Patent Law," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 16(2), pages 385-405, June.
  • Handle: RePEc:bla:jemstr:v:16:y:2007:i:2:p:385-405

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    References listed on IDEAS

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    Cited by:

    1. Cremers, Katrin & Gaessler, Fabian & Harhoff, Dietmar & Helmers, Christian, 2014. "Invalid but infringed? An analysis of Germany's bifurcated patent litigation system," ZEW Discussion Papers 14-072, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. Rockett, Katharine, 2010. "Property Rights and Invention," Handbook of the Economics of Innovation, Elsevier.
    3. Cremers, Katrin & Gaessler, Fabian & Harhoff, Dietmar & Helmers, Christian & Lefouili, Yassine, 2016. "Invalid but infringed? An analysis of the bifurcated patent litigation system," Journal of Economic Behavior & Organization, Elsevier, vol. 131(PA), pages 218-242.
    4. Francisco Ramos Romeu, 2010. "An economic theory of the regulation of preliminary measures," European Journal of Law and Economics, Springer, vol. 30(3), pages 267-300, December.

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