Intellectual Property Infringement by Foreign Firms: Import Protection through the ITC or Court

James Brander and Barbara Spencer

No 28496, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper examines intellectual property litigation as a method of protection from patent-infringing imports. Claims against patent-infringing imports entering the United States may be filed before the International Trade Commission (ITC) or in district court. The ITC applies injunctions (import prohibitions) that would seem to provide more protection from infringing imports than the standard license fee remedy in court. Settlements prior to legal adjudication are common in both venues. Using a model with Nash bargaining and Cournot competition, we show that an ITC filing may restrict imports by less than in court. This result tends to apply if product differentiation is high and the size of the patented cost-reducing innovation is large.

JEL-codes: C70 F12 F13 K41 O34 (search for similar items in EconPapers)
Date: 2021-02
New Economics Papers: this item is included in nep-gth, nep-ino, nep-int and nep-ipr
Note: ITI
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Published as James A. Brander & Barbara J. Spencer, 2022. "Intellectual property infringement by foreign firms: Import protection through the ITC or court," Journal of International Economics, .

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