Litigation and Settlement in Patent Infringement Cases

Posted: 23 May 2002

See all articles by Claude Crampes

Claude Crampes

Toulouse University

Corinne Langinier

University of Alberta - Department of Economics

Abstract

A patent grants its owner the right to sue intruders that have been identified. The patentholder must then supervise the market and react in case of infringement. His reaction may be to go to court, to settle, or to accept entry. We investigate how intensive the monitoring effort should be and how it will influence the entry decision. In a simultaneous game, even if the penalty paid by the infringer in case of a finding of liability is high, the patentholder may prefer a settlement to a trial. The likelihood of entry may increase with the penalty. In sequential games, regardless who plays first, entry occurs comparatively less often than in the simultaneous game.

Suggested Citation

Crampes, Claude and Langinier, Corinne, Litigation and Settlement in Patent Infringement Cases. Available at SSRN: https://ssrn.com/abstract=307726

Claude Crampes

Toulouse University ( email )

Manufacture des Tabacs
21 Allee de Brienne bat. F
Toulouse Cedex, F-31000
France

Corinne Langinier (Contact Author)

University of Alberta - Department of Economics ( email )

8-14 Tory Building
Edmonton, Alberta T6G 2H4
Canada

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
878
PlumX Metrics