Do firms profit from patent litigation? The contingent roles of diversification and intangible assets

Prior research suggests that firms’ ability to benefit from their technologies is determined by the strength of intellectual property (IP) laws and inimitability technologies. We complement this explanation suggesting generation profits technology also driven how effectively firms engage in patent infringement litigation (i.e., take legal action against rivals) create isolating mechanisms protect contend characterized industry geographic specificity affect (disproportionately) revenue costs and, therefore, its net effect on firm profitability. By identifying contingencies influence economic returns litigation, analysis helps us understand why experience different profitability outcomes even when they operate similar IP regimes possess portfolios