Under Threat: Potential Competition, Litigation and the Private Value of Patent Protection
This paper investigates the effect of the threat and occurrence of patent litigation on the private value of patent protection. Potential challenges are introduced into a renewal model as a factor in patentee decisions as to whether a patent is worth maintaining. The model yields testable predictions about renewal probabilities. Data for post WWII German patents support the hypothesis that the need to defend patent rights influences patentee behaviour. The paper concludes with a discussion of how this factor may be incorporated in patent value estimations and what the results imply for the interpretation of patent data.
|Date of creation:||Jul 1992|
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References listed on IDEAS
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- Pakes, Ariel S, 1986.
"Patents as Options: Some Estimates of the Value of Holding European Patent Stocks,"
Econometric Society, vol. 54(4), pages 755-84, July.
- Ariel Pakes, 1984. "Patents as Options: Some Estimates of the Value of Holding European Patent Stocks," NBER Working Papers 1340, National Bureau of Economic Research, Inc.
- Michael J. Meurer, 1989. "The Settlement of Patent Litigation," RAND Journal of Economics, The RAND Corporation, vol. 20(1), pages 77-91, Spring.
- Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626 National Bureau of Economic Research, Inc.
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