The Role of Fees in Patent Systems: Theory and Evidence
Journal of Economic Surveys, Forthcoming
28 Pages Posted: 20 Oct 2010 Last revised: 29 Oct 2011
Date Written: October 2, 2011
This paper reviews the economic literature on the role of fees in patent systems. Two main research questions are usually addressed: the impact of patent fees on the behavior of applicants and the question of optimal fees. Studies in the former group confirm that a range of fees affect the behavior of applicants and suggest that a patent is an inelastic good. Studies in the latter group provide grounds for both low and high application (or pre-grant) fees and renewal (or post-grant) fees, depending on the structural context and on policy objectives. The paper also presents new stylized facts on patent fees of thirty patent offices worldwide. It is shown that application fees are generally lower than renewal fees, and renewal fees increase more than proportionally with patent age.
Keywords: application fees, patent system, price elasticity, intellectual property policy, renewal fees
JEL Classification: O30, O31, O38, O57
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