nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2014‒12‒03
three papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. The Market Impacts of Pharmaceutical Product Patents in Developing Countries: Evidence from India By Mark Duggan; Craig Garthwaite; Aparajita Goyal
  2. The Effect of Patent Grant on the Geographic Reach of Patent Sales By Drivas, Kyriakos; Fafaliou, Irene; Fampiou, Elpiniki; Yannelis, Demetrius
  3. Invalid but infringed? An analysis of Germany's bifurcated patent litigation system By Cremers, Katrin; Gaessler, Fabian; Harhoff, Dietmar; Helmers, Christian

  1. By: Mark Duggan; Craig Garthwaite; Aparajita Goyal
    Abstract: In 2005, as the result of a World Trade Organization mandate, India began to implement product patents for pharmaceuticals that were compliant with the 1995 Trade-Related Aspects of Intellectual Property Rights (TRIPS). We combine pharmaceutical product sales data for India with a newly gathered dataset of molecule-linked patents issued by the Indian patent office. Exploiting variation in the timing of patent decisions, we estimate that a molecule receiving a patent experienced an average price increase of just 3-6 percent with larger increases for more recently developed molecules and for those produced by just one firm when the patent system began. Our results also show little impact on quantities sold or on the number of pharmaceutical firms operating in the market.
    JEL: I11 L1 O34
    Date: 2014–10
  2. By: Drivas, Kyriakos; Fafaliou, Irene; Fampiou, Elpiniki; Yannelis, Demetrius
    Abstract: This paper examines whether patents increase the geographic reach of the market for ideas. By employing a dataset of 25,127 US patents traded between US located firms, we find that patents sold during application phase are less likely to be traded outside the seller‟s state than patents that have been issued. To tackle the endogeneity issues we employ coarsened exact matching techniques. We find that patent grant increases the likelihood of a patent to be traded across boundaries of the state. This evidence is stronger for patents originating from the less innovative US states.
    Keywords: patent grant, patent applications, market for patents, geographic reach of technology, coarsened exact matching
    JEL: O32 O33
    Date: 2014–11–21
  3. By: Cremers, Katrin; Gaessler, Fabian; Harhoff, Dietmar; Helmers, Christian
    Abstract: We analyze the impact of the probabilistic nature of patents on the functioning of Germany's bifurcated patent litigation system where infringement and validity of a patent are decided independently by different courts. We show that bifurcation creates situations in which a patent is held infringed that is subsequently invalidated. Our conservative estimates indicate that 12% of infringement cases in which the patent's validity is challenged produce such 'invalid but infringed' decisions. We also show that having to challenge a patent's validity in separate court proceedings means that more resource-constrained alleged infringers are less likely to do so. We find evidence that 'invalid but infringed' decisions create uncertainty which firms that were found to infringe an invalid patent attempt to reduce by filing more oppositions against newly granted patents immediately afterwards.
    Keywords: Litigation,innovation,patents,bifurcation,Germany
    Date: 2014

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