2020
DOI: 10.1257/app.20180361
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Crafting Intellectual Property Rights: Implications for Patent Assertion Entities, Litigation, and Innovation

Abstract: We show that examiner-driven variation in patent rights leads to quantitatively large impacts on several patent outcomes, including patent value, citations, and litigation. Notably, Patent Assertion Entities (PAEs) overwhelmingly purchase patents granted by “lenient” examiners. These examiners issue patents that are more likely to be litigated by both PAEs and conventional companies, and that also have higher invalidity rates. PAEs leverage a specific friction in the patent system that stems from lenient exami… Show more

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Cited by 36 publications
(34 citation statements)
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References 50 publications
(75 reference statements)
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“…Recent examples of examiner designs includeChetty et al (2011),Maestas et al (2013),Doyle et al (2015),Feng and Jaravel (2017), andDobbie et al (2018). Notably,Kolesar et al (2015) study theChetty et al (2011) design under the assumption that examiner groups are invalid instruments for treatment, leveraging an orthogonality condition similar to ours.…”
mentioning
confidence: 99%
“…Recent examples of examiner designs includeChetty et al (2011),Maestas et al (2013),Doyle et al (2015),Feng and Jaravel (2017), andDobbie et al (2018). Notably,Kolesar et al (2015) study theChetty et al (2011) design under the assumption that examiner groups are invalid instruments for treatment, leveraging an orthogonality condition similar to ours.…”
mentioning
confidence: 99%
“…More specifically, to the best of my knowledge there is no information on the patent attorney or agent and, before 1965, no information on the patent examiner associated with each patent for most years; there is no equivalent to the USPTO's Patent Application Information Retrieval (PAIR) system for historical patents 42. This makes analysis that exploits assignment of patents to examiners, as in Sampat and Williams (2019), Gaulé (2018), Righi and Simcoe (2019), or Feng and Jaravel (2020), infeasible with historical patent data.…”
Section: What Historical Patents Don't Havementioning
confidence: 99%
“…What becomes clear through this analysis is the potential pitfalls of composite patent quality measures. The obvious exemplar here is the relationship between International and KPSS value, aspects of both of which can be related to the financial value of a patent (Harhoff et al, 2003;Fischer and Leidinger, 2014;Kogan et al, 2017) and, as such, have been used directly as proxies for this value (Yang et al, 2015;Poege et al, 2019;Feng and Jaravel, 2020). Due to the generally negative relationship between these two metrics shown in Figure 5, 16 a composite measure where both were included could be empirically problematic.…”
Section: Dominance Analysismentioning
confidence: 99%