Selling patents at auction: an empirical analysis of patent value

Cristina Odasso, Giuseppe Scellato and Elisa Ughetto

Industrial and Corporate Change, 2015, vol. 24, issue 2, 417-438

Abstract: This article analyzes the impact of patent bibliographic indicators and patent characteristics on the economic value of patents put on sale in an auction, considering different typologies of sellers and buyers. A unique data set covering all patent auctions held until the end of 2008 by Ocean Tomo is used. We employ two measures of patent value drawn from the auction process: the offer price (ex ante value set by the seller) and the closing price (the market value determined by the buyers) of patent lots. We find a positive correlation between forward citations and the economic value of patents (in terms of both the lot offer price and the lot closing price), while backward citations have a positive and significant impact only on the lot offer price. The number of claims is positively related to the lot closing price and the effect is significant only for the fraction of buyers who are nonpracticing entities. The degree of technological congruence of the patents included in a lot turns out to be positively associated with the probability that the lot is sold and has a positive effect on both the lot offer price and the lot closing price. We also find a significant impact of the extent of the residual life of patents on the lot closing price. The effect is driven by the subsample of nonpracticing entities as buyers. Finally, the extension of patent protection to other jurisdictions, as captured by the size of the patent family, is positively associated with both the lot offer price and the lot closing price.

Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
http://hdl.handle.net/10.1093/icc/dtu015 (application/pdf)
Access to full text is restricted to subscribers.

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:oup:indcch:v:24:y:2015:i:2:p:417-438.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Industrial and Corporate Change is currently edited by Josef Chytry

More articles in Industrial and Corporate Change from Oxford University Press and the Associazione ICC Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().