A Theoretical Framework for Empirical Research on PAEs and Privateers

26 Pages Posted: 7 Feb 2016

See all articles by Anne Layne-Farrar

Anne Layne-Farrar

Charles River Associates; Northwestern University

Date Written: February 5, 2016


Patent Assertion Entities – firms that acquire patents from others and then deploy them for licensing or damages revenues rather than for practice within their own products or services – have been a frequent subject of debate over the last several years. More recently, focus has centered on a new species of PAE, “privateers” or “hybrid PAEs”. These are entities that obtain patent enforcement rights from practicing entities, assert those patents in litigation, and then share the damages earnings with the original patent holder. This paper provides a theoretical assessment of how hybrid PAEs may alter the litigation landscape. The framework developed here can provide an important aid to guide empirical work.

Keywords: Privateer, PAE, Hybrid PAE, patent licensing, litigation

JEL Classification: K00, K21, K41, C71, D21, D23, D81

Suggested Citation

Layne-Farrar, Anne, A Theoretical Framework for Empirical Research on PAEs and Privateers (February 5, 2016). Available at SSRN: https://ssrn.com/abstract=2728390 or http://dx.doi.org/10.2139/ssrn.2728390

Anne Layne-Farrar (Contact Author)

Charles River Associates ( email )

1 South Wacker Drive
Suite 3400
Chicago, IL 60606
United States
312-377-9238 (Phone)

HOME PAGE: http://www.crai.com

Northwestern University ( email )

2001 Sheridan Road
Evanston, IL 60208
United States

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