Work

Crafting Intellectual Property Rights: Implications for Patent Assertion Entities, Litigation, and Innovation

Year: 2020

Type: article

Abstract: We show that examiner-driven variation in patent rights leads to quantitatively large impacts on several patent outcomes, including patent value, citations, and litigation. Notably, Patent Assertion Entities (PAEs) overwhelmingly purchase patents granted by “lenient” examiners. These examiners issue patents that are more likely to be litigated by both PAEs and conventional companies, and that also have higher invalidity rates. PAEs leverage a specific friction in the patent system that stems from lenient examiners and affects litigation more broadly. These patterns indicate that there is much at stake during patent examination, contradicting the influential “rational ignorance” view of the patent office. (JEL K11, K41, O31, O34, O38)

Source: American Economic Journal Applied Economics

DOI: 10.1257/app.20180361

Authors: Josh Feng, Xavier Jaravel

Institutions: National Bureau of Economic Research, University of Utah, London School of Economics and Political Science

Language: English

Topic: Intellectual Property and Patents

Subfield: Management of Technology and Innovation

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: bronze

Funders: Ewing Marion Kauffman Foundation, National Institute on Aging