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Full-Text Articles in Law
Enhanced Damages For Patent Infringement: A Normative Approach, Keith N. Hylton
Enhanced Damages For Patent Infringement: A Normative Approach, Keith N. Hylton
Faculty Scholarship
This paper takes a normative approach to patent infringement damages. Its underlying premise is that the goal of a damages regime should be to maximize society's welfare. Patent damages should therefore balance society's interest in encouraging innovation against the need to regulate infringement incentives. This balancing approach generates an optimal standard for awarding enhanced damages and guidelines for determining the size of the damages multiplier. On the legal standard, the approach developed here illuminates the factors that should be taken into consideration in the enhancement analysis, and, more importantly, the reasons those factors should be considered. On the precise size …
Patents At Issue: The Data Behind The Patent Troll Debate, Jonathan H. Ashtor, Michael J. Mazzeo, Samantha Zyontz
Patents At Issue: The Data Behind The Patent Troll Debate, Jonathan H. Ashtor, Michael J. Mazzeo, Samantha Zyontz
Faculty Scholarship
The debate over "patent trolls"' is raging at full tilt and its fury is stoked by fundamental questions about patent assertion. Both sides are struggling to understand which patent assertion practices are consistent with the purpose of patent rights and which are abusive and result in net social costs. This Article addresses patent assertion concretely through empirical analysis of actual infringement awards. In particular, this Article studies all awards granted for findings of patent infringement in U.S. district courts between 1995 and 2011, and, with targeted analyses, focuses on cases involving patent assertion entities ("PAEs"). This Article specifically investigates certain …
Do Npes Matter? Non-Practicing Entities And Patent Litigation Outcomes, Samantha Zyontz, Michael J. Mazzeo, Jonathan H. Ashtor
Do Npes Matter? Non-Practicing Entities And Patent Litigation Outcomes, Samantha Zyontz, Michael J. Mazzeo, Jonathan H. Ashtor
Faculty Scholarship
It is widely argued that so-called “patent trolls” are corrupting the U.S. patent system and endangering technology innovation and commercialization at large. For example, a recent White House report argued that “trolls” hurt firms of all sizes and advocated for specific policies aimed at curtailing practices thought to be particularly harmful. Yet the existence and extent of any systematic effects of so-called “troll-like” behavior, and the implications of modern patent assertion practices by Non-Practicing Entities (“NPEs”), remains unclear. This article develops novel empirical evidence to inform the debate over NPEs on patent litigation. Specifically, we conduct a large-scale empirical analysis …
Explaining The ‘Unpredictable’: An Empirical Analysis Of U.S. Patent Infringement Awards, Samantha Zyontz, Michael J. Mazzeo, Jonathan Hillel
Explaining The ‘Unpredictable’: An Empirical Analysis Of U.S. Patent Infringement Awards, Samantha Zyontz, Michael J. Mazzeo, Jonathan Hillel
Faculty Scholarship
Patent infringement awards are commonly thought to be unpredictable, which raises concerns that patents can lead to unjust enrichment and impede the progress of innovation. We investigate the unpredictability of patent damages by conducting a large-scale econometric analysis of award values. We begin by analyzing the outcomes of 340 cases decided in US federal courts between 1995 and 2008 in which infringement was found and damages were awarded. Our data include the amount awarded, along with information about the litigants, case specifics and economic value of the patents-at-issue. Using these data, we construct an econometric model that explains over 75% …
The Federal Circuit As A Federal Court, Paul Gugliuzza
The Federal Circuit As A Federal Court, Paul Gugliuzza
Faculty Scholarship
The U.S. Court of Appeals for the Federal Circuit has exclusive jurisdiction over patent appeals and, as a consequence, the last word on many legal issues important to innovation policy. This Article shows how the Federal Circuit augments its already significant power by impeding other government institutions from influencing the patent system. Specifically, the Federal Circuit has shaped patent-law doctrine, along with rules of jurisdiction, procedure, and administrative law, to preserve and expand the court’s power in four interinstitutional relationships: the court’s federalism relationship with state courts, its separation of powers relationship with the executive and legislative branches, its vertical …
The Private Costs Of Patent Litigation, James Bessen, Michael J. Meurer
The Private Costs Of Patent Litigation, James Bessen, Michael J. Meurer
Faculty Scholarship
This paper estimates the total cost of patent litigation to alleged infringers. We use a large sample of stock market event studies around the date of lawsuit filings for US public firms from 1984-99. We find that the total costs of litigation are much greater than legal fees and costs are large even for lawsuits that settle. Lawsuits cost alleged infringers about $28.7 million ($92) in the mean and $2.9 million in the median. Moreover, infringement risk rose sharply during the late 1990s to over 14% of R&D spending. Small firms have lower risk relative to R&D.