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Private value of patent right and patent infringement: An empirical study based on patent renewal data of China

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  • Zhang, Gupeng
  • Lv, Xiaofeng
  • Zhou, Jianghua

Abstract

It is common to see patentees coexist with infringers in developing countries, which leads to a split of patent value between patentees and infringers. This paper extends traditional model for estimation of patent value. We classify patentees by technology level: Patentees with low technology level are motivated to imitate patentees with high technology level. This leads to an early lapse of patent right by patentees with both high and low technology level. With this model, we estimate the value of invention patents in China. Although patent value of Chinese firms is lower than that of foreign firms, the differences are not as large. This is mainly because of the existence of potential patent value. This value is dropped, since the motivation of imitating foreign patents leads to the lapse of their own patents. Technology contained in the patent would thus not be further developed. The infringement behavior is more likely to occur in technology fields with less technology gap between Chinese and foreign firms, which may be due to an easier copy of technology. The strengthening of patent protection works, as two patent law amendments in 1993 and 2001 reduces the infringement. Policy implications are made at the end of the study.

Suggested Citation

  • Zhang, Gupeng & Lv, Xiaofeng & Zhou, Jianghua, 2014. "Private value of patent right and patent infringement: An empirical study based on patent renewal data of China," China Economic Review, Elsevier, vol. 28(C), pages 37-54.
  • Handle: RePEc:eee:chieco:v:28:y:2014:i:c:p:37-54
    DOI: 10.1016/j.chieco.2013.11.004
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    5. Hao Mao & Lauren A. Johnston & Zhifeng Yin, 2019. "The Self-Reported Patent Quality Of Chinese Firms: Motivation Source And Technology Accumulation Effects Analysis," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(04), pages 939-960, September.
    6. Zhang, Gupeng & Xiong, Libin & Duan, Hongbo & Huang, Dujuan, 2020. "Obtaining certainty vs. creating uncertainty: Does firms’ patent filing strategy work as expected?," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    7. Hu, Jiangfeng & Pan, Xinxin & Huang, Qinghua, 2020. "Quantity or quality? The impacts of environmental regulation on firms’ innovation–Quasi-natural experiment based on China's carbon emissions trading pilot," Technological Forecasting and Social Change, Elsevier, vol. 158(C).
    8. Dujuan Huang & Hongbo Duan & Gupeng Zhang, 2020. "Analysis on the Enterprises’ Innovation Quality Based on the Patent Value: A Comparison between Public and Private Enterprises in China," Sustainability, MDPI, Open Access Journal, vol. 12(8), pages 1-15, April.
    9. Jiao, Hao & Zhou, Jianghua & Gao, Taishan & Liu, Xielin, 2016. "The more interactions the better? The moderating effect of the interaction between local producers and users of knowledge on the relationship between R&D investment and regional innovation systems," Technological Forecasting and Social Change, Elsevier, vol. 110(C), pages 13-20.

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