This paper analyzes patent pools and their effects on innovation incentives. It is shown that the pro …-competitive effects of patent pools for complementary patents naturally extend for dynamic innovation incentives. However, this simple … case, the licensing fees reflect the strength of patents. Patent pools of complementary patents can be used to discourage …

Patent litigation poses a variety of challenges to the envisioned efficiency of trial. Such cases involve a high number …-stakes for the parties involved. These parties (and in particular patent holders) are also encouraged by empirical trends in … patent litigation to both seek jury trials and appeal after a verdict in a lower court. Generally, patent holders experience …

Using novel inter-firm patent litigation data, we show that defendant firms become financially constrained, reduce … innovation strategy reflects the patent race motives and hedging demand of defendant firms against future litigation. These real … consequences of patent litigation are evident among firms in similar product markets, indicating significant interplay between …

In a patent infringement suit, the alleged infringer wins with a ruling of either patent invalidity or non … patent invalidation may also affect incentives to innovate. We adapt the "innovative industries'' model of Segal and Whinston … (2007) to study patent litigation strategy and rates of innovation. We show that a legal regime where infringement is …

difference between the products. From the perspective of public policy, it is clarified that the policy on patent scope cannot … higher when the conflict is settled via cross licensing. However, the weak protection on patent rights, which is shown to …