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Full-Text Articles in Law
The Patent Litigation Explosion, James Bessen, Michael J. Meurer
The Patent Litigation Explosion, James Bessen, Michael J. Meurer
Faculty Scholarship
This Article provides the first look at patent litigation hazards for public firms during the 1980s and 1990s. Litigation is more likely when prospective plaintiffs acquire more patents, when firms are larger and technologically close and when prospective defendants spend more on research and development ("R&D"). The latter suggests inadvertent infringement may be more important than piracy. Public firms face dramatically increased hazards of litigation as plaintiffs and even more rapidly increasing hazards as defendants, especially for small public firms. The increase cannot be explained by patenting rates, R&D, firm value or industry composition. Legal changes are the most likely …
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.
Lessons For Patent Policy From Empirical Research On Patent Litigation, Michael J. Meurer, James Bessen
Lessons For Patent Policy From Empirical Research On Patent Litigation, Michael J. Meurer, James Bessen
Faculty Scholarship
This Article reviews empirical patent litigation research to reveal patent policy lessons. First, the Article presents facts about patent litigation. Next, it analyzes the patent premium. Patent litigation research reveals little about the magnitude of the patent premium, but the research reveals the strategies firms use to capture the patent premium and the patent policy instruments that determine the patent premium. Next, the Article evaluates the patent prosecution process and notes that making efforts to refine a patent application can affect the value of the patent. The Article then identifies reforms for improving PTO performance. Finally, the Article discusses policy …