Global Patent Chokepoints

33 Pages Posted: 29 Oct 2016

See all articles by Daniel R. Cahoy

Daniel R. Cahoy

Pennsylvania State University - Mary Jean and Frank P. Smeal College of Business Administration

Zhen Lei

Pennsylvania State University

Yuxi Meng

PwC

Seth Blumsack

Pennsylvania State University

Date Written: August 26, 2016

Abstract

A firm’s patent strategy is commonly focused on excluding competition in the domestic market. Foreign patent rights may be sought, but the presumption is that they are valuable only if a firm has access to a foreign market through sales, licensing or foreign direct investment. However, in countries that are major manufacturing bases and international exporters, like China and India, a new strategy may be emerging: seeking patents there solely to impact competition in external markets. This paper describes this novel use of “global patent chokepoints” and presents empirical evidence that it is actually occurring. It considers patent filings in solar photovoltaics (PV) in China between 2002 and 2007 and demonstrates that activity is responsive to increases in solar PV production by Chinese rivals, but not to domestic installation. The findings are significant, because if this strategy is more widely adopted, pricing and access impacts for important health and sustainability technologies may result.

Keywords: Patent, intellectual property, china, solar panels

JEL Classification: O30, O31, O35, O38

Suggested Citation

Cahoy, Daniel R. and Lei, Zhen and Meng, Yuxi and Blumsack, Seth, Global Patent Chokepoints (August 26, 2016). Stanford Technology Law Review, Vol. 20, Available at SSRN: https://ssrn.com/abstract=2860810

Daniel R. Cahoy (Contact Author)

Pennsylvania State University - Mary Jean and Frank P. Smeal College of Business Administration ( email )

310 Business Building
University Park, PA 16802
United States
814-865-6205 (Phone)
814-865-6284 (Fax)

Zhen Lei

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

Yuxi Meng

PwC ( email )

Germany

Seth Blumsack

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

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