transactions should increase litigation risk. We identify a new source of gains from trade, comparative advantage in patent … enforcement, and show that transactions driven by this motive should reduce litigation. Using data on trade and litigation of … effect of trade on litigation. We find that taxes strongly affect patent transactions, and that reallocation of patent rights …

innovator. We compare the resort to a financier once the infringement has occurred (ex-post financing) with patent litigation …-best outcome: a situation in which patent predation is deterred without inducing excessive litigation. …

rely on the attorney’s recommendation. We show that under contingent fees there will generally be excessive litigation. In … contrast, an hourly fee implements the efficient amount of litigation. …

patent and litigation system. …