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Economic incongruities in the European patent system

Author

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  • Malwina Mejer
  • Bruno van Pottelsberghe de la Potterie
Abstract
Bruno van Pottelsberghe argues that the consequences of the fragmentation of the European patent system are more dramatic than the mere prohibitive costs of maintaining a patent in force in many jurisdictions. The authors first show that heterogeneous national litigation costs, practices and outcome induce a high level of uncertainty. But also that a high degree of managerial complexity results from systemic incongruities due to easier parallel imports, possible time...
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Suggested Citation

  • Malwina Mejer & Bruno van Pottelsberghe de la Potterie, 2012. "Economic incongruities in the European patent system," European Journal of Law and Economics, Springer, vol. 34(1), pages 215-234, August.
    • Handle: RePEc:kap:ejlwec:v:34:y:2012:i:1:p:215-234
    DOI: 10.1007/s10657-011-9221-3
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    1. Bruno van Pottelsberghe de la Potterie, 2011. "The quality factor in patent systems," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 20(6), pages 1755-1793, December.
    2. Bruno van Pottelsberghe, 2008. "The London Agreement and the cost of patenting in Europe," Working Papers 264, Bruegel.
    3. Pakes, Ariel & Schankerman, Mark A., 1978. "The Rate of Obsolescence of Knowledge, Research Gestation Labs, and the Private Rate of Return to Research Resources," Working Papers 78-13, C.V. Starr Center for Applied Economics, New York University.
    4. James E. Bessen & Michael J. Meurer, 2006. "Patent Litigation with Endogenous Disputes," American Economic Review, American Economic Association, vol. 96(2), pages 77-81, May.
    5. Claude Crampes & Corinne Langinier, 2002. "Litigation and Settlement in Patent Infringement Cases," RAND Journal of Economics, The RAND Corporation, vol. 33(2), pages 258-274, Summer.
    6. Filippetti, Andrea, 2009. "J. Bessen and M.J. Meurer, Patent Failure. How Judges, Bureaucrats, and Lawyers Put Innovators at Risk , Princeton University Press (2008) ISBN 978-0691134918 352 pp.," Research Policy, Elsevier, vol. 38(6), pages 1077-1078, July.
    7. Graham, Stuart J.H. & Harhoff, Dietmar, 2006. "Can Post-Grant Reviews Improve Patent System Design? A Twin Study of US and European Patents," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 38, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    8. Bruno van Pottelsberghe, . "Lost property- The European patent system and why it doesn't work," Blueprints, Bruegel, number 312, June.
    9. Kyle Margaret, 2011. "Strategic Responses to Parallel Trade," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(2), pages 1-34, January.
    10. Lerner, Josh, 1995. "Patenting in the Shadow of Competitors," Journal of Law and Economics, University of Chicago Press, vol. 38(2), pages 463-495, October.
    11. Bruno Van Pottelsberghe & Carine Peeters, 2006. "Economic and management perspectives on intellectual property rights," ULB Institutional Repository 2013/6185, ULB -- Universite Libre de Bruxelles.
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    Cited by:

    1. Cremers, Katrin & Gaessler, Fabian & Harhoff, Dietmar & Helmers, Christian, 2014. "Invalid but infringed? An analysis of Germany's bifurcated patent litigation system," ZEW Discussion Papers 14-072, ZEW - Leibniz Centre for European Economic Research.
    2. Agnieszka Kupzok & Julien Pénin, 2013. "Les enjeux économiques du brevet unitaire européen," Bulletin de l'Observatoire des politiques économiques en Europe, Observatoire des Politiques Économiques en Europe (OPEE), vol. 29(1), pages 29-34, December.
    3. Dietmar Harhoff & Georg von Graevenitz & Stefan Wagner, 2016. "Conflict Resolution, Public Goods, and Patent Thickets," Management Science, INFORMS, vol. 62(3), pages 704-721, March.
    4. Katrin Cremers & Max Ernicke & Fabian Gaessler & Dietmar Harhoff & Christian Helmers & Luke McDonagh & Paula Schliessler & Nicolas Zeebroeck, 2017. "Patent litigation in Europe," European Journal of Law and Economics, Springer, vol. 44(1), pages 1-44, August.
      • Cremers, Katrin & Ernicke, Max & Gaessler, Fabian & Harhoff, Dietmar & Helmers, Christian & McDonagh, Luke & Schliessler, Paula & Van Zeebroeck, Nicolas, 2013. "Patent litigation in Europe," ZEW Discussion Papers 13-072, ZEW - Leibniz Centre for European Economic Research.
      • Katrin Cremers & Max Ernicke & Fabian Gaessler & Dietmar Harhoff & Christian Helmers & Luke Mc Donagh & Paula Schliessler & Nicolas van Zeebroeck, 2017. "Patent litigation in Europe," ULB Institutional Repository 2013/226239, ULB -- Universite Libre de Bruxelles.
    5. Rabah Amir & David Encaoua & Yassine Lefouili, 2011. "Per-Unit Royalty vs Fixed Fee: The Case of Weak Patents," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00595493, HAL.
    6. Danguy Jérôme & van Pottelsberghe de la Potterie Bruno, 2011. "Cost-Benefit Analysis of the Community Patent," Journal of Benefit-Cost Analysis, De Gruyter, vol. 2(2), pages 1-43, April.
    7. Petit, Elise & van Pottelsberghe de la Potterie, Bruno & Gimeno-Fabra, Lluis, 2023. "Are patent offices substitutes?," Research Policy, Elsevier, vol. 52(8).
    8. Hall, Bronwyn H. & Helmers, Christian, 2019. "The impact of international patent systems: Evidence from accession to the European Patent Convention," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    9. Bruno van Pottelsberghe de la Potterie, 2011. "The quality factor in patent systems," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 20(6), pages 1755-1793, December.
    10. repec:ulp:buopee:v:29:y:2013:m:12:i:6 is not listed on IDEAS
    11. García-Muñiz, Ana Salomé & Vicente, María Rosalía, 2014. "ICT technologies in Europe: A study of technological diffusion and economic growth under network theory," Telecommunications Policy, Elsevier, vol. 38(4), pages 360-370.
    12. Hughes, A. & Mina, A., 2010. "The Impact of the Patent System on SMEs," Working Papers wp411, Centre for Business Research, University of Cambridge.
    13. Georg von Graevenitz & Antanina Garanasvili, 2018. "The European Patent System: A Descriptive Analysis," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2018-12, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    14. Kafouros, Mario & Aliyev, Murod & Krammer, Sorin M.S., 2021. "Do firms profit from patent litigation? The contingent roles of diversification and intangible assets," Research Policy, Elsevier, vol. 50(6).
    15. van der Waal, Mark B. & Feddema, Jelle J. & van de Burgwal, Linda H.M., 2023. "Mapping the broad societal impact of patents," Technovation, Elsevier, vol. 128(C).
    16. Jérôme Danguy & Bruno van Pottelsberghe, 2014. "The policy dilemma of the unitary patent," Working Papers 858, Bruegel.
    17. Raphael Zingg & Erasmus Elsner, 2020. "Protection heterogeneity in a harmonized European patent system," European Journal of Law and Economics, Springer, vol. 50(1), pages 87-131, August.
    18. Herz, Benedikt & Mejer, Malwina, 2019. "Effects of the European Union trademark: Lessons for the harmonization of intellectual property systems," Research Policy, Elsevier, vol. 48(7), pages 1841-1854.
    19. Bruno van Pottelsberghe, . "Lost property- The European patent system and why it doesn't work," Blueprints, Bruegel, number 312, June.
    20. Valerio STERZI & Jean-Paul RAMESHKOUMAR & Johannes VAN DER POL, 2020. "Non-practicing entities and transparency in patent ownership in Europe," Bordeaux Economics Working Papers 2020-10, Bordeaux School of Economics (BSE).
    21. Marianna Succurro & Giuseppina Damiana Costanzo, 2019. "Ownership structure and firm patenting activity in Italy," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 9(2), pages 239-266, June.

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    More about this item

    Keywords

    European patent system; Litigation process; Enforcement; Uncertainty; K41; P14; O34;
    All these keywords.

    JEL classification:

    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • P14 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Property Rights

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