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Author:Crampes, C.
Langinier, C.
Title:Litigation and settlement in patent infringement cases
Journal:RAND Journal of Economics
2002 : SUMMER, VOL. 33:2, p. 258-274
Index terms:Patents
Licensing
R&D
Legislation
Litigation
Language:eng
Abstract:A patent grants its owner the right to sue intruders that have been identified. The patentholder must then supervse the market and react in case of infringement. The authors investigate how intensive the monitoring effort should be and how it will influence the entry decision.In a simultaneous game, even if the penalty paid by the infringer in case of a finding of liability is high, the patentholder may prefer a settlement to a trial. The likelihood of entry may increase with the penalty. In sequential games, regardless who plays first, entry occurs comparatively less often than on the simultaneous game.
SCIMA record nr: 234348
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