Innovation in the Shadow of Patent Litigation
We analyze non-cooperative R&D investment by two firms that already hold patents that they can assert against each other with probabilistic success. The market structure results from stochastic innovation and patent litigation. Depending on the level of infringement fees, we highlight positive and negative effects of litigation threats on innovation. We define an appropriate regulatory structure of infringement fees that will implement socially efficient R&D investments in the case of symmetric and asymmetric patent portfolios.
|Date of creation:||2008|
|Date of revision:|
|Publication status:||Published, Review of Industrial Organization, 2008, 32, 2, 95-111|
|Note:||View the original document on HAL open archive server: http://hal-ensmp.archives-ouvertes.fr/hal-00397130|
|Contact details of provider:|| Web page: http://hal.archives-ouvertes.fr/ |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James Bessen & Robert M. Hunt, 2007.
"An Empirical Look at Software Patents,"
Journal of Economics & Management Strategy,
Wiley Blackwell, vol. 16(1), pages 157-189, 03.
- Llobet, Gerard, 2003. "Patent litigation when innovation is cumulative," International Journal of Industrial Organization, Elsevier, vol. 21(8), pages 1135-1157, October.
- Suzanne Scotchmer, 1991. "Standing on the Shoulders of Giants: Cumulative Research and the Patent Law," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 29-41, Winter.
- Schankerman, Mark & Scotchmer, Suzanne, 2005.
"Still Looking for Lost Profits: The Case of Horizontal Competition,"
Competition Policy Center, Working Paper Series
qt5746p162, Competition Policy Center, Institute for Business and Economic Research, UC Berkeley.
- Schankerman, Mark & Scotchmer, Suzanne, 2005. "Still Looking for Lost Profits: The Case of Horizontal Competition," Department of Economics, Working Paper Series qt45r7776m, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Fershtman, Chaim & Kamien, Morton I., 1992.
"Cross licensing of complementary technologies,"
International Journal of Industrial Organization,
Elsevier, vol. 10(3), pages 329-348, September.
- Chaim Fershtman & Morton I. Kamien, 1990. "Cross Licensing of Complementary Technologies," Discussion Papers 866, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Fershtman, C. & Kamien, M.I., 1991. "Cross Licensing of Complementary Technologies," Papers 1-91, Tel Aviv.
- James J. Anton & Dennis A. Yao, 2007. "Finding "Lost" Profits: An Equilibrium Analysis of Patent Infringement Damages," Journal of Law, Economics and Organization, Oxford University Press, vol. 23(1), pages 186-207, April.
- Anand, Bharat N & Khanna, Tarun, 2000. "The Structure of Licensing Contracts," Journal of Industrial Economics, Wiley Blackwell, vol. 48(1), pages 103-35, March.
- Bessen, James, 2004. "Holdup and licensing of cumulative innovations with private information," Economics Letters, Elsevier, vol. 82(3), pages 321-326, March.
- Reitzig, Markus & Henkel, Joachim & Heath, Christopher, 2007. "On sharks, trolls, and their patent prey--Unrealistic damage awards and firms' strategies of "being infringed"," Research Policy, Elsevier, vol. 36(1), pages 134-154, February.
- James Bessen, 2004. "Patent Thickets: Strategic Patenting of Complex Technologies," Working Papers 0401, Research on Innovation.
- Schankerman, Mark & Scotchmer, Suzanne, 2001. "Damages and Injunctions in Protecting Intellectual Property," RAND Journal of Economics, The RAND Corporation, vol. 32(1), pages 199-220, Spring.
When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-00397130. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD)
If references are entirely missing, you can add them using this form.