Abstract

http://ssrn.com/abstract=2278255
 
 

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Trends in Private Patent Costs and Rents for Publicly-Traded United States Firms


James E. Bessen


Boston University - School of Law; Research on Innovation

Peter Neuhäusler


Fraunhofer Institute for Systems and Innovation Research ISI ; Berlin Universtity of Technology

John L. Turner


University of Georgia - C. Herman and Mary Virginia Terry College of Business - Department of Economics

Jonathan W. Williams


University of Georgia - C. Herman and Mary Virginia Terry College of Business - Department of Economics; University of North Carolina (UNC) at Chapel Hill - Department of Economics

March 2015

Boston Univ. School of Law, Public Law Research Paper No. 13-24
Boston Univ. School of Law, Law and Economics Research Paper No. 13-24

Abstract:     
We use detailed data to estimate the private costs and private rents of United States patents for publicly-traded firms. To estimate these costs, we combine lawsuit data from Derwent Litalert with non-practicing entity (NPE) lawsuits collected by Patent Freedom, and use an event-study approach to estimate losses suffered by alleged infringers during 1984-2009. To estimate these rents, we combine patent data from the USPTO and EPO with financial data from CRSP and COMPUSTAT, and use market-value regressions to estimate the value of patent rents for publicly-traded US firms during 1979-2002. We find that private costs exceed private rents during 1999-2000 and the trend in costs is sharply higher. Costs also exceed forecasts of rents for 2005-09. Surges in the number of NPE lawsuits contribute to the increase in the gap.

Number of Pages in PDF File: 45

Keywords: event study, market-value regression, patent, litigation, non-practicing entities, research and development

JEL Classification: K2, O3


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Date posted: June 12, 2013 ; Last revised: March 22, 2015

Suggested Citation

Bessen, James E. and Neuhäusler, Peter and Turner, John L. and Williams, Jonathan W., Trends in Private Patent Costs and Rents for Publicly-Traded United States Firms (March 2015). Boston Univ. School of Law, Public Law Research Paper No. 13-24; Boston Univ. School of Law, Law and Economics Research Paper No. 13-24. Available at SSRN: http://ssrn.com/abstract=2278255 or http://dx.doi.org/10.2139/ssrn.2278255

Contact Information

James E. Bessen (Contact Author)
Boston University - School of Law ( email )
765 Commonwealth Avenue
Boston, MA 02215
United States
Research on Innovation ( email )
202 High Head Rd.
Harpswell, ME 04079
United States
617-531-2092 (Phone)
Peter Neuhäusler
Fraunhofer Institute for Systems and Innovation Research ISI ( email )
Breslauer Str. 48
Karlsruhe, 76139
Germany
Berlin Universtity of Technology ( email )
Straße des 17
Berlin
Germany
John L. Turner
University of Georgia - C. Herman and Mary Virginia Terry College of Business - Department of Economics ( email )
Athens, GA 30602-6254
United States
Jonathan W. Williams
University of Georgia - C. Herman and Mary Virginia Terry College of Business - Department of Economics ( email )
Athens, GA 30602-6254
United States
University of North Carolina (UNC) at Chapel Hill - Department of Economics ( email )
Chapel Hill, NC 27599
United States
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