[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/trf/wpaper/38.html
   My bibliography  Save this paper

Can Post-Grant Reviews Improve Patent System Design? A Twin Study of US and European Patents

Author

Listed:
  • Graham, Stuart J.H.
  • Harhoff, Dietmar
Abstract
This paper assesses the impact of adopting a post-grant review institution in the US patent system by comparing the “opposition careers†of European Patent Office (EPO) equivalents of litigated US patents to those of a control group of EPO patents. We demonstrate several novel methods of "twinning" US and European patents and investigate the implications of employing these different methods in our data analysis. We find that EPO equivalents of US litigated patent applications are more likely to be awarded EPO patent protection than are equivalents of unlitigated patents, and the opposition rate for EPO equivalents of US litigated patents is about three times higher than for equivalents of unlitigated patents. Patents attacked under European opposition are shown to be either revoked completely or narrowed in about 70 percent of all cases. For EPO equivalents of US litigated patents, the appeal rate against opposition outcomes is considerably higher than for control-group patents. Based on our estimates, we calculate a range of net welfare benefits that would accrue from adopting a post-grant review system. Our results provide strong evidence that the United States could benefit substantially from adopting an administrative post-grant patent review, provided that the post-grant mechanism is not too costly.

Suggested Citation

  • 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.
    • Handle: RePEc:trf:wpaper:38
    as

    Download full text from publisher

    File URL: https://epub.ub.uni-muenchen.de/13510/1/38.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Lanjouw, Jean O & Schankerman, Mark, 2001. "Characteristics of Patent Litigation: A Window on Competition," RAND Journal of Economics, The RAND Corporation, vol. 32(1), pages 129-151, Spring.
    2. Mark A. Lemley & Carl Shapiro, 2005. "Probabilistic Patents," Journal of Economic Perspectives, American Economic Association, vol. 19(2), pages 75-98, Spring.
    3. Paul H. Jensen & Alfons Palangkaraya & Elizabeth Webster, 2005. "Patent Application Outcomes across the Trilateral Patent Offices," Melbourne Institute Working Paper Series wp2005n05, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    4. Graham, Stuart J. H. & Hall, Bronwyn H. & Harhoff, Dietmar & Mowery, David C., 2002. "Post-Issue Patent "Quality Control": A Comparative Study of US Patent Re-Examinations and European Patent Oppositions," Department of Economics, Working Paper Series qt2qt097bd, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    5. Hall, B. & Jaffe, A. & Trajtenberg, M., 2001. "The NBER Patent Citations Data File: Lessons, Insights and Methodological Tools," Papers 2001-29, Tel Aviv.
    6. Jonathan Levin & Richard Levin, "undated". "Patent Oppositions," Yale Law School John M. Olin Center for Studies in Law, Economics, and Public Policy Working Paper Series yale_lepp-1005, Yale Law School John M. Olin Center for Studies in Law, Economics, and Public Policy.
    7. Bronwyn H. Hall & Stuart Graham & Dietmar Harhoff & David C. Mowery, 2004. "Prospects for Improving US Patent Quality via Postgrant Opposition," NBER Chapters, in: Innovation Policy and the Economy, Volume 4, pages 115-144, National Bureau of Economic Research, Inc.
    8. Harhoff, Dietmar & Reitzig, Markus, 2004. "Determinants of opposition against EPO patent grants--the case of biotechnology and pharmaceuticals," International Journal of Industrial Organization, Elsevier, vol. 22(4), pages 443-480, April.
    9. Schankerman, Mark & Lanjouw, Jean, 2001. "Enforcing Intellectual Property Rights," CEPR Discussion Papers 3093, C.E.P.R. Discussion Papers.
    10. Harhoff, Dietmar & Scherer, Frederic M. & Vopel, Katrin, 2003. "Citations, family size, opposition and the value of patent rights," Research Policy, Elsevier, vol. 32(8), pages 1343-1363, September.
    11. Linda R. Cohen & Jun Ishii, 2005. "Competition, Innovation and Racing for Priority at the U.S. Patent and Trademark Office," Working Papers 050604, University of California-Irvine, Department of Economics.
    12. Deepak Somaya, 2003. "Strategic determinants of decisions not to settle patent litigation," Strategic Management Journal, Wiley Blackwell, vol. 24(1), pages 17-38, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jurriën Bakker & Dennis Verhoeven & Lin Zhang & Bart Van Looy, 2016. "Patent citation indicators: One size fits all?," Scientometrics, Springer;Akadémiai Kiadó, vol. 106(1), pages 187-211, January.
    2. Rockett, Katharine, 2010. "Property Rights and Invention," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 315-380, Elsevier.
    3. 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.
    4. de Saint-Georges, Matthis & van Pottelsberghe de la Potterie, Bruno, 2013. "A quality index for patent systems," Research Policy, Elsevier, vol. 42(3), pages 704-719.
    5. 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.
    6. Andrew Eckert & Corinne Langinier, 2014. "A Survey Of The Economics Of Patent Systems And Procedures," Journal of Economic Surveys, Wiley Blackwell, vol. 28(5), pages 996-1015, December.
    7. Katrin Cremers & Paula Schliessler, 2015. "Patent litigation settlement in Germany: why parties settle during trial," European Journal of Law and Economics, Springer, vol. 40(2), pages 185-208, October.
    8. Joshua S. Gans & David H. Hsu & Scott Stern, 2008. "The Impact of Uncertain Intellectual Property Rights on the Market for Ideas: Evidence from Patent Grant Delays," Management Science, INFORMS, vol. 54(5), pages 982-997, May.
    9. Olof Ejermo, 2009. "Regional Innovation Measured by Patent Data—Does Quality Matter?," Industry and Innovation, Taylor & Francis Journals, vol. 16(2), pages 141-165.
    10. Filitz, Rainer & Henkel, Joachim & Tether, Bruce S., 2015. "Protecting aesthetic innovations? An exploration of the use of registered community designs," Research Policy, Elsevier, vol. 44(6), pages 1192-1206.
    11. Nicolas van Zeebroeck, 2011. "The puzzle of patent value indicators," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(1), pages 33-62.
    12. Andreas Panagopoulos & In-Uck Park, 2008. "Patent Protection, Takeovers, and Startup Innovation: A Dynamic Approach," The Centre for Market and Public Organisation 08/201, The Centre for Market and Public Organisation, University of Bristol, UK.
    13. Catherine Beaudry & Andrea Schiffauerova, 2011. "Is Canadian intellectual property leaving Canada? A study of nanotechnology patenting," The Journal of Technology Transfer, Springer, vol. 36(6), pages 665-679, December.
    14. Neuhäusler, Peter, 2008. "Patente in Europa und den USA: Veränderungen ab 1991 aufgezeigt an Gesamtzahlen und dem Technologiefeld des Ubiquitous Computing," Discussion Papers "Innovation Systems and Policy Analysis" 14, Fraunhofer Institute for Systems and Innovation Research (ISI).
    15. Lei, Zhen & Wright, Brian D., 2009. "Why weak patents? Rational ignorance or pro-"customer" Tilt?," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49279, Agricultural and Applied Economics Association.
    16. Catalina Martínez, 2011. "Patent families: When do different definitions really matter?," Scientometrics, Springer;Akadémiai Kiadó, vol. 86(1), pages 39-63, January.
    17. Fiona Murray & Siobhán O'Mahony, 2007. "Exploring the Foundations of Cumulative Innovation: Implications for Organization Science," Organization Science, INFORMS, vol. 18(6), pages 1006-1021, December.
    18. Rahul RK Kapoor & Nicolas van Zeebroeck, 2016. "The laws of action and reaction: on determinants of patent disputes in European chemical and drug industries," Working Papers TIMES² WP 2016-019, ULB -- Universite Libre de Bruxelles.
    19. Alfons Palangkaraya, 2010. "Patent Application Databases," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 43(1), pages 77-87, March.
    20. Nicolas van Zeebroeck, 2009. "From patent renewals to applications survival: do portfolio management strategies play a role in patent length?," Working Papers CEB 09-028.RS, ULB -- Universite Libre de Bruxelles.
    21. Nils Omland, 2011. "Valuing Patents through Indicators," Chapters, in: Federico Munari & Raffaele Oriani (ed.), The Economic Valuation of Patents, chapter 7, Edward Elgar Publishing.
    22. Siebert, Ralph Bernd & Graevenitz, Georg von, 2010. "Licensing in the Patent Thicket - Timing and Benefits," MPRA Paper 24007, University Library of Munich, Germany.
    23. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andrew Eckert & Corinne Langinier, 2014. "A Survey Of The Economics Of Patent Systems And Procedures," Journal of Economic Surveys, Wiley Blackwell, vol. 28(5), pages 996-1015, December.
    2. Graham, Stuart J.H. & Harhoff, Dietmar, 2014. "Separating patent wheat from chaff: Would the US benefit from adopting patent post-grant review?," Research Policy, Elsevier, vol. 43(9), pages 1649-1659.
    3. Nicolas van Zeebroeck, 2011. "The puzzle of patent value indicators," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(1), pages 33-62.
    4. Nicolas van Zeebroeck, 2007. "Patents only live twice: a patent survival analysis in Europe," Working Papers CEB 07-028.RS, ULB -- Universite Libre de Bruxelles.
    5. 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.
    6. Lei, Zhen & Wright, Brian D., 2009. "Why weak patents? Rational ignorance or pro-"customer" Tilt?," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49279, Agricultural and Applied Economics Association.
    7. Kwon, Seokbeom, 2021. "The prevalence of weak patents in the United States: A new method to identify weak patents and the implications for patent policy," Technology in Society, Elsevier, vol. 64(C).
    8. Juranek, Steffen, 2015. "Investing in legal advice - What determines the costs of enforcing intellectual property rights?," Discussion Papers 2015/20, Norwegian School of Economics, Department of Business and Management Science.
    9. Rahul RK Kapoor & Nicolas van Zeebroeck, 2016. "The laws of action and reaction: on determinants of patent disputes in European chemical and drug industries," Working Papers TIMES² WP 2016-019, ULB -- Universite Libre de Bruxelles.
    10. Chung, Jiyoon & Lorenz, Annika & Somaya, Deepak, 2019. "Dealing with intellectual property (IP) landmines: Defensive measures to address the problem of IP access," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    11. Juranek, Steffen, 2018. "Investing in legal advice," Information Economics and Policy, Elsevier, vol. 44(C), pages 28-46.
    12. Kimberlee Weatherall & Elizabeth Webster, 2014. "Patent Enforcement: A Review Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 28(2), pages 312-343, April.
    13. Philipp N. Baecker, 2007. "Real Options and Intellectual Property," Lecture Notes in Economics and Mathematical Systems, Springer, number 978-3-540-48264-2, October.
    14. Maria Isabella Leone & Raffaele Oriani & Toke Reichstein, 2015. "How much are flexibility and uncertainty worth in patent licensing?," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(4), pages 371-394, December.
    15. Bronwyn H. Hall, 2009. "Business And Financial Method Patents, Innovation, And Policy," Scottish Journal of Political Economy, Scottish Economic Society, vol. 56(4), pages 443-473, September.
    16. Stefan Wagner, 2008. "Business Method Patents In Europe And Their Strategic Use—Evidence From Franking Device Manufacturers," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 17(3), pages 173-194.
    17. Rockett, Katharine, 2010. "Property Rights and Invention," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 315-380, Elsevier.
    18. Bronwyn H. Hall & Stuart Graham & Dietmar Harhoff & David C. Mowery, 2004. "Prospects for Improving US Patent Quality via Postgrant Opposition," NBER Chapters, in: Innovation Policy and the Economy, Volume 4, pages 115-144, National Bureau of Economic Research, Inc.
    19. Dirk Czarnitzki & Katrin Hussinger & Cédric Schneider, 2009. "Why Challenge the Ivory Tower? New Evidence on the Basicness of Academic Patents," Kyklos, Wiley Blackwell, vol. 62(4), pages 488-499, November.
    20. Rentocchini, Francesco, 2011. "Sources and characteristics of software patents in the European Union: Some empirical considerations," Information Economics and Policy, Elsevier, vol. 23(1), pages 141-157, March.

    More about this item

    Keywords

    patent system; post-grant review; opposition; litigation;
    All these keywords.

    JEL classification:

    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:trf:wpaper:38. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tamilla Benkelberg (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.