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Property Rights and Patent Litigation in Early Nineteenth-Century America

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  • Khan, B. Zorina

Abstract

Economic development depends on the establishment of appropriate institutions, such as a patent system that defends property rights in inventions. Skeptics argue that patents in early America were unenforceable because judges arbitrarily ruled against patentees. I examine 795 patent cases to assess the role of the courts and find that judges protected patent rights because they believed that inventors were motivated by expected returns. Although changes occurred in the 1850s, the courts consistently upheld the view that the patent system fostered economic growth. If inventive activity indeed responded to material incentives, this finding implies that the legal system stimulated technical change by reinforcing the effectiveness of the patent system.The laws of the United States are extremely favorable to the division of property.—Alexis de Tocqueville, Democracy in America

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  • Khan, B. Zorina, 1995. "Property Rights and Patent Litigation in Early Nineteenth-Century America," The Journal of Economic History, Cambridge University Press, vol. 55(1), pages 58-97, March.
    • Handle: RePEc:cup:jechis:v:55:y:1995:i:01:p:58-97_04
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    Citations

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    Cited by:

    1. Petra Moser, 2005. "How Do Patent Laws Influence Innovation? Evidence from Nineteenth-Century World's Fairs," American Economic Review, American Economic Association, vol. 95(4), pages 1214-1236, September.
    2. Patricio Sáiz & Rubén Amengual, 2018. "Do patents enable disclosure? Strategic innovation management of the four-stroke engine," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(6), pages 975-997.
    3. B. Zorina Khan & Kenneth L. Sokoloff, 2004. "Institutions and Technological Innovation During the Early Economic Growth: Evidence from the Great Inventors of the United States, 1790-1930," NBER Working Papers 10966, National Bureau of Economic Research, Inc.
    4. Beatty, Edward & Saiz, Patricio, 2007. "Industrial Property Institutions, Patenting, and Technology Investment in Spain and Mexico, c. 1820-1914," Working Papers in Economic History 2007/02, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
    5. Zhu, Hong & Qian, Gong-ming, 2015. "High-tech firms’ international acquisition performance: The influence of host country property rights protection," International Business Review, Elsevier, vol. 24(4), pages 556-566.
    6. Burhop, Carsten & Lübbers, Thorsten, 2010. "Incentives and innovation? R&D management in Germany's chemical and electrical engineering industries around 1900," Explorations in Economic History, Elsevier, vol. 47(1), pages 100-111, January.
    7. Naomi R. Lamoreaux & Kenneth L. Sokoloff, 1999. "Inventors, Firms, and the Market for Technology in the Late Nineteenth and Early Twentieth Centuries," NBER Chapters, in: Learning by Doing in Markets, Firms, and Countries, pages 19-60, National Bureau of Economic Research, Inc.
    8. Zorina Khan & Kenneth L. Sokoloff, 2004. "Institutions and Democratic Invention in 19th-Century America: Evidence from "Great Inventors," 1790-1930," American Economic Review, American Economic Association, vol. 94(2), pages 395-401, May.
    9. Kenneth L. Sokoloff & Naomi R. Lamoreaux, 2001. "Market Trade in Patents and the Rise of a Class of Specialized Inventors in the 19th-Century United States," American Economic Review, American Economic Association, vol. 91(2), pages 39-44, May.
    10. Kenneth L Sokoloff & Zorina Kahn, 2003. "Intellectual Property Institutions in the United States: Early Development and Comparative Perspective," Levine's Working Paper Archive 618897000000000525, David K. Levine.
    11. Saiz, Patricio & Amengual, Rafael, 2016. "Knowledge Disclosure, Patent Management, and the Four-Stroke Engine Business," Working Papers in Economic History 2016/02, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
    12. B. Zorina Khan, 1999. "Legal Monopoly: Patents and Antitrust Litigation in U.S. Manufacturing, 1970-1998," NBER Working Papers 7068, National Bureau of Economic Research, Inc.
    13. Ceyhun Haydaroglu, 2015. "The Relationship between Property Rights and Economic Growth: an Analysis of OECD and EU Countries," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 4, pages 217-239, December.
    14. B. Zorina Khan & Kenneth L. Sokoloff, 2001. "The Early Development of Intellectual Property Institutions in the United States," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 233-246, Summer.
    15. Petros Milionis, 2012. "Long-Run Development in the Open Economy," DEGIT Conference Papers c017_059, DEGIT, Dynamics, Economic Growth, and International Trade.

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