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Are Patent Fees Effective at Weeding Out Low-Quality Patents?

Author

Listed:
  • Gaétan de Rassenfosse

    (École polytechnique fédérale de Lausanne)

  • Adam B. Jaffe

    (Motu Economic and Public Policy Research)

Abstract
The paper investigates whether patent fees are an effective mechanism to deter the filing of low-quality patent applications. The study analyses the effect of the Patent Law Amendment Act of 1982, which resulted in a substantial increase in patenting fees at the U.S. Patent and Trademark Office, on patent quality. Results from a series of difference-in-differences regressions suggest that the increase in fees led to a weeding out of low-quality patents. About 16–17 per cent of patents in the lowest quality decile were filtered out. The figure reaches 24–30 per cent for patents in the lowest quality quintile. However, the fee elasticity of quality decreased with the size of the patent portfolio held by applicants. The study has strong policy implications in the current context of concerns about declines in patent quality and the financial vulnerability of patent offices.

Suggested Citation

  • Gaétan de Rassenfosse & Adam B. Jaffe, 2015. "Are Patent Fees Effective at Weeding Out Low-Quality Patents?," Working Papers 15_01, Motu Economic and Public Policy Research.
    • Handle: RePEc:mtu:wpaper:15_01
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    File URL: https://motu-www.motu.org.nz/wpapers/15_01.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Patents; Patent fees; Patent quality; Innovation; Invention;
    All these keywords.

    JEL classification:

    • K2 - Law and Economics - - Regulation and Business Law
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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