The Value of Legal Protection of Novel Product Designs: Evidence from Egyptian Goddess v. Swisa
49 Pages Posted: 5 May 2020 Last revised: 16 Jun 2021
Date Written: June 15, 2020
An unexpected decision of the Federal Circuit Court of Appeals (CAFC) on Egyptian Goddess v. Swisa in 2008 greatly enhanced the legal protection for novel product designs , especially those with many features (i.e., product designs that are more intricate). That decision helped reduce imitations of more intricate product designs. Such strengthened legal protection has value implications, as stock markets reacted more favorably thereafter to intricate product designs compared to simpler product designs. Such positive reactions are more pronounced among firms facing fiercer product market competition and among firms previously involved in design-related litigation.
Keywords: design innovation, patent system, market performance, firm strategy, organization and behavior
JEL Classification: G18, K11, L51, O34
Suggested Citation: Suggested Citation