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Patent Privateering

Author

Listed:
  • Adrien HERVOUET
  • Emmanuel LORENZON
  • Cesare RIGHI
  • Valerio STERZI

Abstract

We study operating companies’ delegation of patent enforcement to patent assertion entities, a practice called “patent privateering.” Using a privateer may allow an operating company to generate higher patent revenues, increase rivals’ costs with “stealth” attacks, and limit the legal responsibilities to bear litigation costs. Using data on European patent transfers and patent infringement litigation in five large European jurisdictions in 2010-2020, we show that patent privateering is more likely to occur for patents with relatively lower economic value, for standard essential patents, and when the target of patent assertion is a competitor of the operating company.

Suggested Citation

  • Adrien HERVOUET & Emmanuel LORENZON & Cesare RIGHI & Valerio STERZI, 2023. "Patent Privateering," Bordeaux Economics Working Papers 2023-10, Bordeaux School of Economics (BSE).
    • Handle: RePEc:grt:bdxewp:2023-10
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    File URL: http://bordeauxeconomicswp.u-bordeaux.fr/2023/2023-10.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    intellectual property; patent; patent privateering; patent litigation; patent assertion enentity; SEP;
    All these keywords.

    JEL classification:

    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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