Joint research unit 7235

On patent strength, litigation costs, and patent disputes under alternative damage rules

Thomas Cortade, Eric Langlais, Bertrand Chopard

This paper analyzes the effects of two damage rules (Lost Profi…t vs Unjust Enrichment) mainly used by Courts in patent litigations. In our model, the Infringer either is a mere imitator of the Patentee or introduces incremental innovations, and litigation costs are private information such that a pretrial settlement may be better for both litigants. We show that the Unjust Enrichment rule yields less trials than the Lost Pro…fit one. But regarding three main objectives, Patentee’s protection, incentives to invest in R&D, and social welfare maximization,we …find that no rule is better than the other generally speaking. Our model also allows to emphasize how the combination between the size of litigation costs, the negotiation gains and the IPR strength, shapes the incentives to enforce as well infringe a IPR, although in a way specifi…c to each rule.

AGENDA

Thursday 1 September 2022

Professeurs invités

Stéphane Méchoulan

Monday 12 September 2022

Law, Institutions and Economics in Nanterre (LIEN)

Stéphane Méchoulan (Dalhousie U)

En salle 614 et en distanciel

Revisiting the effects of abortion legalization

Monday 12 September 2022

Revisiting the effects of abortion legalization

Stéphane Méchoulan (Dalhousie U)

En salle 614 et en distanciel

Revisiting the effects of abortion legalization

Wednesday 14 September 2022

Colloques et Workshops

Roundtable on Gender-based violence in South Africa

Wednesday 14 September 2022

Colloques et Workshops

Roundtable on Gender-based violence in South Africa

Friday 16 September 2022

Colloques et Workshops

Tables rondes de macro-finance contemporaine

Friday 16 September 2022

Colloques et Workshops

Tables rondes de macro-finance contemporaine

Monday 19 September 2022

Colloques et Workshops

Valeur, valeurs

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