Effects of patent privateering on settlements and R&D under sequential market entry

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Klapper, F.B.; Siemering, C.: Effects of patent privateering on settlements and R&D under sequential market entry. In: Information Economics and Policy 66 (2024), 101080. DOI: https://doi.org/10.1016/j.infoecopol.2024.101080

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Sum total of downloads: 4




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Abstract: 
We investigate patent litigation, settlements and R&D incentives on a market where two firms develop technologies in order to obtain patents and produce goods. Firms may sell IP rights to a Patent Assertion Entity (PAE) that acts as intermediary for patent monetization. We find that compared to simultaneous market entry, the effect of this so-called patent privateering is mitigated if firms enter sequentially. Furthermore, we show that privateering may decrease industry profits by distortion of R&D incentives even when there is no rent extraction by the PAE.
License of this version: CC BY 4.0 Unported
Document Type: Article
Publishing status: publishedVersion
Issue Date: 2024
Appears in Collections:Wirtschaftswissenschaftliche Fakultät

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pos. country downloads
total perc.
1 image of flag of United States United States 2 50.00%
2 image of flag of Germany Germany 1 25.00%
3 image of flag of China China 1 25.00%

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