Optimal remedies for patent infringement

Keith N. Hylton and Mengxi Zhang

International Review of Law and Economics, 2017, vol. 52, issue C, 44-57

Abstract: This paper derives optimal remedies for patent infringement, examining damages awards and injunctions. The fundamental optimality condition that applies to both awards and injunctions equates the marginal static cost of intellectual property protection with the marginal “dynamic” benefit from the innovation thereby induced. When the social value of the patent is sufficiently high, the optimal award induces socially efficient investment by giving the innovator the entire social value of her investment.

Keywords: Optimal patent damages; Patent infringement; Willful infringement; Optimal injunction scope (search for similar items in EconPapers)
JEL-codes: D42 K13 L40 O31 O34 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:irlaec:v:52:y:2017:i:c:p:44-57

DOI: 10.1016/j.irle.2017.07.001

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