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Cost-Benefit Analysis of the Community Patent

  • Danguy Jérôme

    (Université libre de Bruxelles (Solvay Brussels School of Economics and Management, ECARES), FNRS Research Fellow)

  • van Pottelsberghe de la Potterie Bruno

    (Université libre de Bruxelles (Solvay Brussels School of Economics and Management, ECARES, DULBEA and CEB), Bruegel Senior Fellow)

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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Article provided by De Gruyter in its journal Journal of Benefit-Cost Analysis.

Volume (Year): 2 (2011)
Issue (Month): 2 (April)
Pages: 1-43

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Handle: RePEc:bpj:jbcacn:v:2:y:2011:i:2:n:3
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  1. 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.
  2. Francois, Didier & van Pottelsberghe de la Potterie, Bruno, 2006. "The Cost Factor in Patent Systems," CEPR Discussion Papers 5944, C.E.P.R. Discussion Papers.
  3. 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.
  4. 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.
  5. Harhoff, Dietmar & Hoisl, Karin & Reichl, Bettina & van Pottelsberghe de la Potterie, Bruno, 2007. "Patent Validation at the Country Level - The Role of Fees and Translation costs," Discussion Papers in Business Administration 2073, University of Munich, Munich School of Management.
  6. Mejer, Malwina & van Pottelsberghe de la Potterie, Bruno, 2009. "Economic incongruities in the European patent system," CEPR Discussion Papers 7142, C.E.P.R. Discussion Papers.
  7. Bruno van Pottelsberghe, . "Lost property: The European patent system and why it doesn't work," Blueprints, Bruegel, number 312.
  8. van Pottelsberghe de la Potterie, 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. Lazaridis, George & van Pottelsberghe de la Potterie, Bruno, 2007. "The rigour of EPO's patentability criteria: An insight into the "induced withdrawals"," World Patent Information, Elsevier, vol. 29(4), pages 317-326, December.
  10. 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, vol. 2(3).
  11. Dominique Guellec & Bruno Van Pottelsberghe & Nicolas van Zeebroeck, 2007. "Patent as a market instrument," ULB Institutional Repository 2013/60728, ULB -- Universite Libre de Bruxelles.
  12. Eugenio Archontopoulos & Dominique Guellec & Niels Stevnsborg & Bruno Van Pottelsberghe & Nicolas van Zeebroeck, 2007. "When small is beautiful: measuring the evolution and consequences of the voluminosity of patent applications at the EPO," ULB Institutional Repository 2013/6191, ULB -- Universite Libre de Bruxelles.
  13. Gaétan de Rassenfosse & Bruno Van Pottelsberghe, 2007. "Per un pugno di dollari: A first look at the price elasticity of patents," Working Papers CEB 07-022.RS, ULB -- Universite Libre de Bruxelles.
  14. 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.
  15. Bruno van Pottelsberghe, 2008. "The London Agreement and the cost of patenting in Europe," Working Papers 264, Bruegel.
  16. 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.
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  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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