nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2014‒08‒09
four papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. On patent strength, litigation costs, and patent disputes under alternative damage rules By Bertrand Chopard; Thomas Cortade; Eric Langlais
  2. Open Innovation Effects of Patent Applications: An empirical study of inkjet technology patents (Japanese) By KINUKAWA Shinya
  3. Research Funding and Academic Output: The Case of Agricultural University of Athens By Kyriakos Drivas; Athanasios T. Balafoutis; Stelios Rozakis
  4. Scientific Sources of Corporate Inventions in Japan: Evidence from an inventor survey (Japanese) By NAGAOKA Sadao; YAMAUCHI Isamu

  1. By: Bertrand Chopard; Thomas Cortade; Eric Langlais
    Abstract: This paper analyzes the effects of two damage rules (Lost Profi…t vs Unjust Enrichment) mainly used by Courts in patent litigations. In our model, the Infringer either is a mere imitator of the Patentee or introduces incremental innovations, and litigation costs are private information such that a pretrial settlement may be better for both litigants. We show that the Unjust Enrichment rule yields less trials than the Lost Pro…fit one. But regarding three main objectives, Patentee's protection, incentives to invest in R&D, and social welfare maximization,we …find that no rule is better than the other generally speaking. Our model also allows to emphasize how the combination between the size of litigation costs, the negotiation gains and the IPR strength, shapes the incentives to enforce as well infringe a IPR, although in a way specifi…c to each rule.
    Keywords: intellectual property, probabilistic patents, patent litigations, incremental innovations, pretrial negotiations, legal costs, imperfect competition.
    JEL: L1 L4 D8 K2 K4
    Date: 2014
  2. By: KINUKAWA Shinya
    Abstract: Firms apply for patents not only to obtain the right to exclude but also to prevent their rivals from obtaining patents of competing technologies. Patent applications for the latter purpose are usually called "defensive applications," which have caused the low appraisal rate of Japanese patents. However, since every patent application is published after 18 months from the application date, the defensive applications can be information sources of new technologies for firms that are not directly competing against the applicants, and the external effects of the defensive applications on different technological fields may be growing in the open innovation era. This paper examines such external effects in the field of inkjet technology using patent citation data, and confirms that even patent applications without examination requests had the effects. Moreover, this paper examines the effects of two patent policy changes on firms' patent applications: the temporary decrease in the novelty standard in the 1990s and the shortening of the examination request period since the 2000s. The regression results show that the former and the latter increased and decreased the number of patent applications, respectively.
    Date: 2014–07
  3. By: Kyriakos Drivas (Agricultural University of Athens); Athanasios T. Balafoutis (Agricultural University of Athens); Stelios Rozakis (Agricultural University of Athens)
    Abstract: This paper uses detailed data on funding information and research output from Agricultural University of Athens to examine how each type of funding source is related to the quantity and quality of academic research output. Of special interest are the corporate sponsors, the Greek government and European Union funding. We find that after controlling for unobserved heterogeneity from each research lab, all types of research sponsors are similarly related to both the count of publications and citations. Further, we find that research labs that have filed for at least one patent application, produce on average more publications and citations and receive more funding both from corporate and public sponsors.
    Keywords: research sponsor, corporate funding, government sponsor, European Union funding, publications, patents.
    JEL: O32 O33 O34
    Date: 2014
  4. By: NAGAOKA Sadao; YAMAUCHI Isamu
    Abstract: We conducted an inventor survey to examine the contribution of science to corporate inventions. The survey results show that for about one-quarter of the inventions, scientific knowledge embodied in literature, equipment, or research materials in the last 15 years was essential to conceive or implement research and development (R&D). If it were not for the collaboration with universities, 3% of the R&D projects would not have been implemented. In total, for two-thirds of the inventions, scientific knowledge contributed to implementing and accelerating R&D. These results indicate the importance of scientific knowledge as a public good to promote corporate inventions. We also found that about 70% of the scientific knowledge source of Japanese inventions was generated in Japan: the suppliers of scientific sources were located domestically. If the scientific sources are cited in the patent document, they are more likely to be cited at where the prior art is described rather than where the invention is described. Moreover, the results show that only 15% of the inventions with important scientific sources cite such important literature in the patent document, and only 16% of the inventions citing non patent literature actually cite the important scientific sources. This result means that the patent citation is an incomplete and noisy index to trace the knowledge flow.
    Date: 2014–07

This nep-ipr issue is ©2014 by Giovanni Ramello. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.