The Rising Tide of Patent Damages

Richard Gilbert

Competition Policy Center, Working Paper Series from Competition Policy Center, Institute for Business and Economic Research, UC Berkeley

Abstract: Very large awards and settlements for patent infringement have increased dramatically since the 1980s. A large fraction of these awards have occurred in the computer hardware and software industries. Complex technologies such as computer hardware and software require rights to a very large number of patents. One explanation for the large awards for patent infringement is the bargaining power of a patentee that has a credible injunction threat for a product that requires rights to multiple patents. This can lead to infringement damage awards and settlements that overestimate the patent’s contribution to product value.

Keywords: patents; infringement; damages; innovation; Law; Business; Social and Behavioral Sciences; Other Business; Other Economics; Technology and Innovation (search for similar items in EconPapers)
Date: 2010-02-01
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Working Paper: The Rising Tide of Patent Damages (2010)
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