We investigate the firms' investment decisions in the presence of litigation over infringement and cross licensing as a way to settle. The model endogenously determines not only the timing of investments but also their capacities, the degree of overlap between the initial and the subsequent...

We propose a model that integrates a series of events regarding patent rights based on real option framework. After the incumbent has acquired a patent, it can be infringed by the challenger, and the conflict between them can be resolved via litigation or settlement with endogenously determined...

We examine a technology licensing under asymmetric information and discuss the effects of R&D policies. In particular, we investigate an innovator's investment strategy and the efficiency of policies from a dynamics perspective. We show that perfect patent protection is optimal under symmetric...