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The cost factor in patent systems

  • Bruno Van Pottelsberghe
  • Didier François

The objective of this paper is to assess to what extent the cost of patenting affects the demand for patents. The empirical analysis, which focuses on the patent systems of the USA, Japan, and Europe in 2003, leads to the following methodological and empirical conclusions: (1) for a proper international comparison, the size of the market and the average number of claims included in a patent must be accounted for; (2) when the cost per claim per capita (the 3C-index) is considered, a negative linear relationship appears between the cost of patenting and the number of claims that are filed; (3) after the grant of a patent by the EPO, the translation, validation and transaction costs induced by an effective protection in several European countries witness a highly fragmented and very expensive European market for intellectual property; (4) for a patent designating 13 European countries, the 3C-index is about ten (two) times higher than in the US (Japanese) system (for process and translation costs up to the grant); (5) The European market being more than twice as large as the US market in terms of inhabitants, the 3C-index suggests that there would be a clear justification for higher nominal examination fees at the EPO, that would ensure the pursuit of a rigorous granting process. © 2008 Springer Science+Business Media, LLC.

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Paper provided by ULB -- Universite Libre de Bruxelles in its series ULB Institutional Repository with number 2013/13422.

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Date of creation: 2009
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Publication status: Published in: Journal of Industry, Competition and Trade (2009) v.9 n° 4,p.329-355
Handle: RePEc:ulb:ulbeco:2013/13422
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  1. Bruno Van Pottelsberghe & George Lazaridis, 2007. "The rigour of EPO's patentability criteria: an insight into the induced withdrawals," ULB Institutional Repository 2013/6189, ULB -- Universite Libre de Bruxelles.
  2. Grupp, Hariolf & Schmoch, Ulrich, 1999. "Patent statistics in the age of globalisation: new legal procedures, new analytical methods, new economic interpretation," Research Policy, Elsevier, vol. 28(4), pages 377-396, April.
  3. Harhoff, Dietmar & Wagner, Stefan, 2006. "Modeling the Duration of Patent Examination at the European Patent Office," Discussion Papers in Business Administration 1256, University of Munich, Munich School of Management.
  4. Adam B. Jaffe & Josh Lerner, 2006. "Innovation and its Discontents," NBER Chapters, in: Innovation Policy and the Economy, Volume 6, pages 27-66 National Bureau of Economic Research, Inc.
  5. Guellec, Dominique & Pottelsberghe de la Potterie, Bruno v., 2000. "Applications, grants and the value of patent," Economics Letters, Elsevier, vol. 69(1), pages 109-114, October.
  6. Archontopoulos, Eugenio & Guellec, Dominique & Stevnsborg, Niels & van Pottelsberghe de la Potterie, Bruno & van Zeebroeck, Nicolas, 2006. "When Small is Beautiful: Measuring the Evolution and Consequences of the Voluminosity of Patent Applications at the EPO," CEPR Discussion Papers 5970, C.E.P.R. Discussion Papers.
  7. Carine Peeters & Bruno Pottelsberghe de la Potterie, 2006. "Innovation strategy and the patenting behavior of firms," Journal of Evolutionary Economics, Springer, vol. 16(1), pages 109-135, April.
  8. Tong, Xuesong & Frame, J. Davidson, 1994. "Measuring national technological performance with patent claims data," Research Policy, Elsevier, vol. 23(2), pages 133-141, March.
  9. Bronwyn H. Hall & Stuart J.H. Graham & Dietmar Harhoff, 2003. "Prospects for Improving U.S. Patent Quality via Post-grant Opposition," NBER Working Papers 9731, National Bureau of Economic Research, Inc.
  10. Bruno Van Pottelsberghe & Herman Denis & Dominique Guellec, 2001. "Using patent counts for cross-country comparisons of technology output," ULB Institutional Repository 2013/6227, ULB -- Universite Libre de Bruxelles.
  11. repec:adr:anecst:y:1998:i:49-50:p:11 is not listed on IDEAS
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