Economics at your fingertips  

Litigation and Settlement in Patent Infringement Cases

Claude Crampes () and Corinne Langinier ()

RAND Journal of Economics, 2002, vol. 33, issue 2, 258-274

Abstract: A patent grants its owner the right to sue intruders that have been identified. The patentholder must then supervise the market and react in case of infringement. His reaction may be to go to court, to settle, or to accept entry. We 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 in the simultaneous game.

Date: 2002
References: Add references at CitEc
Citations: View citations in EconPapers (46) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Litigation and Settlement in Patent Infringement Cases (2002)
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:

Ordering information: This journal article can be ordered from
https://editorialexp ... i-bin/rje_online.cgi

Access Statistics for this article

More articles in RAND Journal of Economics from The RAND Corporation
Bibliographic data for series maintained by ().

Page updated 2020-07-08
Handle: RePEc:rje:randje:v:33:y:2002:i:summer:p:258-274