We analyze the impact of the probabilistic nature of patents on the functioning of Germany’s bifurcated patent … litigation system where infringement and validity of a patent are decided independently by different courts. We show that … bifurcation creates situations in which a patent is held infringed that is subsequently invalidated. Our conservative estimates …

supplemental information on IP litigation and patent portfolios. The rich survey information regarding firms’ general innovation …We contribute to the economic literature on patent litigation by taking a new perspective. In the past, scholars mostly … focused on specific litigation cases at the patent level and related technological characteristics to the event of litigation …