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An exploratory analysis of patent fencing in pharmaceuticals: The case of PDE5 inhibitors

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  • Sternitzke, Christian

Abstract

Firms pursue a number of strategies to appropriate value, including patenting. In this paper I study patent fencing, a specific filing strategy to use multiple related patents to further enhance value appropriation. The paper addresses the pharmaceutical industry, which shows a high patenting propensity and strong lifecycle management activities leading to additional patent filings per drug. Building on an inductive case study, this paper explores the mechanisms behind patent fencing within a novel class of drugs. Patents with offensive blocking potential are primarily filed in the a later stage of the lifecycle and are tied to certain categories of patents with a low potential to substitute prior filings economically, while filing of patents with defensive blocking potential occurs more often in the early lifecycle stage. Finally, a model is developed on patent fencing in pharmaceuticals that builds on these patents’ characteristics.

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  • Sternitzke, Christian, 2013. "An exploratory analysis of patent fencing in pharmaceuticals: The case of PDE5 inhibitors," Research Policy, Elsevier, vol. 42(2), pages 542-551.
    • Handle: RePEc:eee:respol:v:42:y:2013:i:2:p:542-551
    DOI: 10.1016/j.respol.2012.11.003
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    5. Peter M. Bican & Dirk Caspary & Carsten C. Guderian, 2023. "Cross-Border Dynamics of IP Modularity: International Patenting in LEDs and Lithium-Ion Secondary Battery Technology," Management International Review, Springer, vol. 63(2), pages 347-376, April.
    6. Wagner, Stefan & Sternitzke, Christian & Walter, Sascha, 2022. "Mapping Markush," Research Policy, Elsevier, vol. 51(10).
    7. Wagner, Stefan & Wakeman, Simon, 2016. "What do patent-based measures tell us about product commercialization? Evidence from the pharmaceutical industry," Research Policy, Elsevier, vol. 45(5), pages 1091-1102.
    8. Dirk Czarnitzki & Katrin Hussinger & Bart Leten, 2020. "How Valuable are Patent Blocking Strategies?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 56(3), pages 409-434, May.
    9. Rahul RK Kapoor & Nicolas van Zeebroeck, 2016. "The laws of action and reaction: on determinants of patent disputes in European chemical and drug industries," Working Papers TIMES² WP 2016-019, ULB -- Universite Libre de Bruxelles.
    10. Ribeiro, Barbara & Shapira, Philip, 2020. "Private and public values of innovation: A patent analysis of synthetic biology," Research Policy, Elsevier, vol. 49(1).
    11. Pantano, Eleonora & Priporas, Constantinos-Vasilios & Stylos, Nikolaos, 2018. "Knowledge Push Curve (KPC) in retailing: Evidence from patented innovations analysis affecting retailers' competitiveness," Journal of Retailing and Consumer Services, Elsevier, vol. 44(C), pages 150-160.
    12. Chunming Xu & Debao Zhu, 2021. "On Conflicts between Pharmaceutical Patent Protection and the Right to Life and Health Based on a Stackelberg Game," IJERPH, MDPI, vol. 18(3), pages 1-13, January.

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