EconPapers    
Economics at your fingertips  
 

Do firms profit from patent litigation? The contingent roles of diversification and intangible assets

Mario Kafouros, Murod Aliyev and Sorin M.S. Krammer

Research Policy, 2021, vol. 50, issue 6

Abstract: Prior research suggests that firms’ ability to benefit from their technologies is determined by the strength of intellectual property (IP) laws and the inimitability of their technologies. We complement this explanation by suggesting that the generation of profits from technology is also driven by how effectively firms engage in patent infringement litigation (i.e., take legal action against their rivals) to create isolating mechanisms and protect their technologies. We contend that patent infringement litigation is characterized by industry and geographic specificity that affect (disproportionately) revenue generation and costs and, therefore, its net effect on firm profitability. By identifying contingencies that influence the economic returns from patent litigation, the analysis helps us understand why firms experience different profitability outcomes even when they operate in similar IP regimes and possess similar portfolios of technologies.

Keywords: Patent infringement litigation; Performance; Profitability; Internationalization; Intangible assets; Product diversification; International diversification (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0048733321000664
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:respol:v:50:y:2021:i:6:s0048733321000664

DOI: 10.1016/j.respol.2021.104263

Access Statistics for this article

Research Policy is currently edited by M. Bell, B. Martin, W.E. Steinmueller, A. Arora, M. Callon, M. Kenney, S. Kuhlmann, Keun Lee and F. Murray

More articles in Research Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2022-01-04
Handle: RePEc:eee:respol:v:50:y:2021:i:6:s0048733321000664