Law Commons^™

The Value Of U.S. Patents By Owner And Patent Characteristics, James Bessen

Faculty Scholarship

This paper uses renewal data to estimate the value of U.S. patents, controlling for patent and owner characteristics. Estimates of U.S. patent value are substantially larger than estimates for European patents, however, the ratio of U.S. patent value to R&D for firms is only about 3%. Patents issued to small patentees are much less valuable than those issued to large corporations, perhaps reflecting imperfect markets for technology. Litigated patents are more valuable, as are highly cited patents. However, patent citations explain little variance in value, suggesting limits to their use as a measure of patent quality.

A Comment On 'Do Patents Facilitate Financing In The Software Industry?', James Bessen

Faculty Scholarship

'Do Patents Facilitate Financing in the Software Industry?' by Ronald J. Mann contributes empirical evidence to our understanding of how software startups use patents. However, a close examination of the actual empirical findings in this paper points to rather different conclusions than those that Mann draws, namely: few software startups benefit from software patents and patents are not widely used by software firms to obtain venture financing. Indeed, among other things, the paper reports that 80% of venture-financed software startups had no acquired any patents within four years of receiving financing.

Tort Reform, Innovation, And Playground Design, Benjamin Barton

College of Law Faculty Scholarship

This essay directly confronts a key claim underlying calls for tort reform: that current product liability law negatively impacts innovation. It begins by outlining the current state of the product liability/innovation debate, and details the arguments and empirical evidence for and against a negative correlation. The essay then argues that when confronted by potential product liability entrepreneurial companies do not simply patch failed products, they fully rethink and redesign them. As such, product liability can actually spur innovation. The essay also indulges in a discussion of the economist Joseph Schumpeter's entrepreneurial mindset and a Calabresian argument that manufacturers are probably …

Tort Reform, Innovation, And Playground Design, Benjamin H. Barton

Scholarly Works

This essay directly confronts a key claim underlying calls for tort reform: that current product liability law negatively impacts innovation. It begins by outlining the current state of the product liability/innovation debate, and details the arguments and empirical evidence for and against a negative correlation. The essay then argues that when confronted by potential product liability entrepreneurial companies do not simply patch failed products, they fully rethink and redesign them. As such, product liability can actually spur innovation. The essay also indulges in a discussion of the economist Joseph Schumpeter's entrepreneurial mindset and a Calabresian argument that manufacturers are probably …

Intellectual Property: The Practical And Legal Fundamentals, Thomas G. Field Jr

Law Faculty Scholarship

Patents, copyrights, trademarks and related interests are known as intellectual property (IP). It has not been long since patents especially were regarded in U.S. courts, and the Supreme Court in particular, as tools of monopolists, and their owners often fared poorly. However, people have come increasingly to view privately funded innovation as critical to national economic well-being and to agree that such innovation cannot occur unless companies that succeed in the marketplace can recoup their research, development and marketing costs. That is a major function of IP, and, particularly within the past dozen years, IP has been seen, both here …

Social Software, Groups, And Governance, Michael J. Madison

Articles

Formal groups play an important role in the law. Informal groups largely lie outside it. Should the law be more attentive to informal groups? The paper argues that this and related questions are appearing more frequently as a number of computer technologies, which I collect under the heading social software, increase the salience of groups. In turn, that salience raises important questions about both the significance and the benefits of informal groups. The paper suggests that there may be important social benefits associated with informal groups, and that the law should move towards a framework for encouraging and recognizing them. …

Coordination, Property & Intellectual Property: An Unconventional Approach To Anticompetitive Effects & Downstream Access, F. Scott Kieff

GW Law Faculty Publications & Other Works

Countless high profile cases like the recent patent litigation threatening to shut down the BlackBerry® service have long drawn sharp criticism; and in response, most of the intellectual property (IP) literature argues for the use of weaker, or liability rule, enforcement as a tool for solving the problems of anticompetitive effects and downstream access while still providing sufficient rewards to IP creators. This paper takes an unconventional approach under which rewards don't matter much, but coordination does matter a great deal. The paper shows how stronger, or property rule, enforcement facilitates the good type of coordination that increases competition and …

Estimates Of Patent Rents From Firm Market Value, James Bessen

Faculty Scholarship

The value of patent rents is an important quantity for policy analysis. However, estimates in the literature based on patent renewals might be understated. Market value regressions could provide validation, but they have not had clear theoretical foundations for estimating patent rents. I develop a simple model to make upper bound estimates of patent rents using regressions on Tobin's Q. I test this on a sample of US firms and find it robust to a variety of considerations. My estimates correspond well with estimates based on patentee behavior outside the pharmaceutical industry, but renewal estimates might be understated for pharmaceuticals.

Patent Buy-Outs For Global Disease Innovations For Low- And Middle-Income Countries, Kevin Outterson

Faculty Scholarship

Drug prices are uniquely susceptible to radical price reductions through generic competition. Patented pharmaceuticals may be priced at more than 30 times the marginal cost of production; the excess is the patent rent collected by the drug company while the patent and exclusive marketing periods remain. Patent rents are significant. AIDS drugs which sell for US$10,000 per person per year in the US are sold generically for less than US$200. If patented drugs could be sold at the marginal cost of production, cost effective treatments would become even more attractive, and other interventions would become affordable.

This Article proposes marginal …