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On the Interaction between Patent Screening and its Enforcement

Author

Listed:
  • Llobet, Gerard
  • Parra, Ã lvaro
  • Suarez, Javier

Abstract

This paper explores the interplay between patent screening and patent enforcement. Costly enforcement involves type I and type II errors. When the patent office takes the rates at which such errors occur as given, granting some invalid patents is socially optimal even in the absence of screening costs because it encourages innovation. When the influence on courts’ enforcement effort is considered, these same forces imply that screening and enforcement are complementary. This means that, contrary to common wisdom, better screening induces better enforcement but also that an increase in enforcement costs could be optimally accommodated with less rather than more ex-ante screening.

Suggested Citation

  • Llobet, Gerard & Parra, Ã lvaro & Suarez, Javier, 2021. "On the Interaction between Patent Screening and its Enforcement," CEPR Discussion Papers 16715, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:16715
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    More about this item

    Keywords

    Intellectual property; Innovation; Imitation; Patent screening; Patent enforcement; Industry dynamics;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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