When Less Is More: Optimal Patent Breadth under the Threat of Patent Validity Challenges.

This article determines the optimal breadth of patent protection for a drastic process innovation when the innovator faces the likelihood of a direct patent validity challenge by a third party and potential entry and infringement by a competitor who provides a technologically equivalent process. The...

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Publicado en:Southern Economic Journal Vol. 75; no. 4; pp. 1067 - 1094
Autor principal: Yiannaka, Amalia
Formato: Artículo
Publicado: Wiley-Blackwell Apr2009
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Acceso en línea:Ver este registro en EBSCOhost
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      dt: Apr2009
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      pub: Wiley-Blackwell
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        38907159
        10.1002/j.2325-8012.2009.tb00947.x
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        atl: When Less Is More: Optimal Patent Breadth under the Threat of Patent Validity Challenges.
      aug:
        au: Yiannaka, Amalia
        affil: Department of Agricultural Economics, 314D Filley Hall, University of Nebraska-Lincoln, Lincoln, NE 68583- 0922, USA
      su:
        Technological innovations
        Public spending
        Patents
        Patent infringement
        Research & development projects
        Deterrence (Military strategy)
      sug:
        subj:
          Technological innovations
          Public spending
          Public Finance Activities
          Offices of Lawyers
          All Other Legal Services
          Patents
          Patent infringement
          Research & development projects
          Deterrence (Military strategy)
      ab: This article determines the optimal breadth of patent protection for a drastic process innovation when the innovator faces the likelihood of a direct patent validity challenge by a third party and potential entry and infringement by a competitor who provides a technologically equivalent process. The effect of the innovator's patent breadth decision on the entrant's incentive to generate a competing process and on the entrant's ability to enter the market is also examined. Analytical results show that the greater the patent breadth, the smaller the entrant's incentive to develop a non-infringing process and the optimal flow of research and development spending. However, when patent breadth can be used to deter entry, the incumbent always prefers to deter entry by choosing the smallest patent breadth possible that could achieve entry deterrence. In addition, when entry cannot be deterred, it is never optimal for the incumbent to claim the maximum patent breadth possible.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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