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Cost Benefit Analysis of the Community Patent

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  • Bruno van Pottelsberghe
  • Jérôme Danguy

Abstract

The creation of a European Community Patent (COMPAT) came a step closer this month when Sweden brokered a preliminary agreement on the issue. In this working paper, Senior Resident Fellow Bruno van Pottelsberghe and Jérôme Danguy use simulations to take a look at the advantages, disadvantages, winners and losers from the creation of the COMPAT. They find that it would drastically reduce the relative patenting costs for applicants while generating more income for the European Patent Office and increased savings for the business sector. They also explain that the lost of economic rents for patent attorneys, translators and lawyers specialised in patent litigation and the drop of controlling power for national patent offices may explain why there has been such resistance to the COMPAT thus far.

Suggested Citation

  • Bruno van Pottelsberghe & Jérôme Danguy, 2009. "Cost Benefit Analysis of the Community Patent," Working Papers 366, Bruegel.
  • Handle: RePEc:bre:wpaper:366
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    References listed on IDEAS

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    1. Harhoff, Dietmar & Hoisl, Karin & Reichl, Bettina & van Pottelsberghe de la Potterie, Bruno, 2009. "Patent validation at the country level--The role of fees and translation costs," Research Policy, Elsevier, vol. 38(9), pages 1423-1437, November.
    2. Bruno Pottelsberghe de la Potterie & Nicolas Zeebroeck, 2008. "A brief history of space and time: The scope-year index as a patent value indicator based on families and renewals," Scientometrics, Springer;Akadémiai Kiadó, vol. 75(2), pages 319-338, May.
    3. Guellec, Dominique & van Pottelsberghe de la Potterie, Bruno, 2007. "The Economics of the European Patent System: IP Policy for Innovation and Competition," OUP Catalogue, Oxford University Press, number 9780199216987.
    4. de Rassenfosse, Gaetan & van Pottelsberghe de la Potterie, Bruno, 2009. "A policy insight into the R&D-patent relationship," Research Policy, Elsevier, vol. 38(5), pages 779-792, June.
    5. Marc Baudry & Béatrice Dumont, 2006. "Patent Renewals as Options: Improving the Mechanism for Weeding Out Lousy Patents," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 28(1), pages 41-62, February.
    6. Malwina Mejer & Bruno Van Pottelsberghe, 2008. "The London Agreement and the Cost of Patenting in Europe," Working Papers ECARES 2008_032, ULB -- Universite Libre de Bruxelles.
    7. Harhoff, Dietmar & Hoisl, Karin & van Pottelsberghe de la Potterie, Bruno, 2009. "Languages, Fees and the International Scope of Patenting," Discussion Papers in Business Administration 10456, University of Munich, Munich School of Management.
    8. Archontopoulos, Eugenio & Guellec, Dominique & Stevnsborg, Niels & van Pottelsberghe de la Potterie, Bruno & van Zeebroeck, Nicolas, 2007. "When small is beautiful: Measuring the evolution and consequences of the voluminosity of patent applications at the EPO," Information Economics and Policy, Elsevier, vol. 19(2), pages 103-132, June.
    9. Bruno van Pottelsberghe de la Potterie & Didier François, 2009. "The Cost Factor in Patent Systems," Journal of Industry, Competition and Trade, Springer, vol. 9(4), pages 329-355, December.
    10. Gaétan de Rassenfosse & Bruno van Pottelsberghe de la Potterie, 2007. "Per un pugno di dollari: a first look at the price elasticity of patents," Oxford Review of Economic Policy, Oxford University Press, vol. 23(4), pages 558-604, Winter.
    11. Bruno van Pottelsberghe, . "Lost property: The European patent system and why it doesn't work," Blueprints, Bruegel, number 312.
    12. 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.
    13. 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).
    14. Francesca Cornelli & Mark Schankerman, 1999. "Patent Renewals and R&D Incentives," RAND Journal of Economics, The RAND Corporation, vol. 30(2), pages 197-213, Summer.
    15. Ginarte, Juan C. & Park, Walter G., 1997. "Determinants of patent rights: A cross-national study," Research Policy, Elsevier, vol. 26(3), pages 283-301, October.
    16. 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, February.
    17. Malwina Mejer & Bruno van Pottelsberghe de la Potterie, 2012. "Economic incongruities in the European patent system," European Journal of Law and Economics, Springer, vol. 34(1), pages 215-234, August.
    18. Dominique Guellec & Bruno Van Pottelsberghe & Nicolas van Zeebroeck, 2007. "Patent as a market instrument," ULB Institutional Repository 2013/60728, ULB -- Universite Libre de Bruxelles.
    19. Marc Baudry & Béatrice Dumont, 2009. "A Bayesian Real Option Approach to Patents and Optimal Renewal Fees," Working Papers hal-00419330, HAL.
    20. 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.
    21. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Glazer Klara, 2015. "Advantages and Disadvantages of the Single European Patent / Prednosti in slabosti enotnega evropskega patenta," Naše gospodarstvo/Our economy, Sciendo, vol. 61(2), pages 24-34, April.
    2. Andrea Conte, 2013. "Determinants of policy reforms in the fields of R&D, education and innovation: EU-27 evidence during the Lisbon Decade," Chapters,in: Governance, Regulation and Innovation, chapter 5, pages 122-146 Edward Elgar Publishing.
    3. Bruno van Pottelsberghe de la Potterie, 2011. "The quality factor in patent systems," Industrial and Corporate Change, Oxford University Press, vol. 20(6), pages 1755-1793, December.
    4. Picard, Pierre M. & van Pottelsberghe de la Potterie, Bruno, 2013. "Patent office governance and patent examination quality," Journal of Public Economics, Elsevier, vol. 104(C), pages 14-25.
    5. Prud'homme, Dan, 2012. "How certain indigenous innovation and other patent policies hamper innovation in China," MPRA Paper 51710, University Library of Munich, Germany, revised Dec 2012.
    6. repec:ulp:buopee:v:29:y:2013:m:12:i:6 is not listed on IDEAS
    7. repec:ipg:wpaper:2014-367 is not listed on IDEAS
    8. Hikkerova, Lubica & Kammoun, Niaz & Lantz, Jean-Sébastien, 2014. "Patent life cycle: New evidence," Technological Forecasting and Social Change, Elsevier, vol. 88(C), pages 313-324.
    9. Gaetan de Rassenfosse & Bruno van Pottelsberghe de la Potterie, 2013. "The Role Of Fees In Patent Systems: Theory And Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 27(4), pages 696-716, September.
    10. Jérôme Danguy & Bruno van Pottelsberghe, 2014. "The policy dilemma of the unitary patent," Working Papers 858, Bruegel.
    11. Spithoven, André & Teirlinck, Peter, 2011. "The relation between the firm’s IP strategy and occupation and qualification of the R&D labour force," Working Papers 2011/21, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
    12. Prud'homme, Dan, 2012. "Dulling the Cutting Edge: How Patent-Related Policies and Practices Hamper Innovation in China," MPRA Paper 43299, University Library of Munich, Germany, revised Dec 2012.
    13. Michele Gazzola & Alessia Volpe, 2014. "Linguistic justice in IP policies: evaluating the fairness of the language regime of the European Patent Office," European Journal of Law and Economics, Springer, vol. 38(1), pages 47-70, August.
    14. Kimberlee Weatherall & Elizabeth Webster, 2014. "Patent Enforcement: A Review Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 28(2), pages 312-343, April.
    15. repec:kap:jincot:v:17:y:2017:i:3:d:10.1007_s10842-016-0239-7 is not listed on IDEAS
    16. Prud'homme, Dan, 2012. "A statistical analysis of China's patent quality situation and larger innovation ecosystem," MPRA Paper 51619, University Library of Munich, Germany.
    17. Julien Pénin & Agnieszka Kupzok, 2013. "Les enjeux économiques du brevet unitaire européen," Bulletin de l'Observatoire des politiques économiques en Europe, Observatoire des Politiques Économiques en Europe (OPEE), vol. 29(1), pages 29-34, December.

    More about this item

    JEL classification:

    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • P14 - Economic Systems - - Capitalist Systems - - - Property Rights

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