Market reaction to patent infringement litigations in the information technology industry
نویسندگان
چکیده
Intellectual property portfolios that include unique inventions and discoveries are potentially inimitable resources that provide strategic leverage to Information Technology (IT) firms. The increasing patent related litigations in the IT industry, and the high costs associated with litigations make this an economically significant activity. Taking a market oriented view to this issue we investigate the economic impact of patent infringement litigation on both the plaintiff and the defendant firms in IT industry. Event study methodology is used to assess the effect of the litigation on the stock market returns around the date of litigation announcement as well as the date of settlement/termination. Our results suggest that the news of patent infringement litigation was unfavorably accepted in the stock market for the defendants. On the other hand, abnormal returns for plaintiff firms around litigation announcement date as well as settlement/termination date were significantly positive. We find evidence to the effect that patent litigations are not zero-sum games since combined abnormal returns for the plaintiff and defendant firms are negative. Patents belonging to the electronic and electric categories are more likely to influence market returns, whereas computer and communications patent categories are less likely to do so. Patent importance (as measured by patent citations) is found to be an important contributor to market’s evaluation of a patent litigation’s impact.
منابع مشابه
Valuing Patents on Market Reaction to Patent Infringement Litigations
Innovation is more important in any companies. However, it is not easy to measure the innovation performance correctly. Patent is one of measuring index nowadays. This paper wants to purpose an approach for valuing patents based on market reaction to patent infringement litigations. The interesting phenomenon is found from collection of patent infringement litigation events. That is if any pate...
متن کاملMarket Reactions to Intellectual Property Infringement Litigations in the Information Technology Industry
متن کامل
Are patent pools a way to help patent owners enforce their rights ? 1
This paper explores empirically the interplay between patent pooling and litigations using data on 1,564 United States patents belonging to eight different pools and to a control database with patents having the same characteristics. We investigate two main questions. We first assess whether the entry in a pool fosters the patents’ enforcement. Our analysis makes it possible to highlight variou...
متن کاملThe Independent Invention Defence in Intellectual Property
Patents differ from other forms of intellectual property in that independent invention is not a defence to infringement. We argue that the patent rule is inferior in any industry where the cost of independently inventing a product is not too much less than (no less than half) the inventor’s cost. First, the threat of entry by independent invention would induce patent holders to license the tech...
متن کاملSocial network analysis of patent infringement lawsuits
Article history: Received 29 December 2011 Received in revised form 30 September 2012 Accepted 2 October 2012 Available online 8 November 2012 Using patent lawsuit information, we develop a method to identify companies with a significant legal influence on the technologies used in their industry. We construct a patent-infringement lawsuits graph, using the data from intellectual property lawsui...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید
ثبت ناماگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید
ورودعنوان ژورنال:
- Information Systems Frontiers
دوره 10 شماره
صفحات -
تاریخ انتشار 2008