Patent Validation at the Country Level - The Role of Fees and Translation costs

Dietmar Harhoff (), Karin Hoisl, Bettina Reichl and Bruno van Pottelsberghe de la Potterie
Authors registered in the RePEc Author Service: Bruno van Pottelsberghe de la Potterie ()

Discussion Papers in Business Administration from University of Munich, Munich School of Management

Abstract: One feature of the European patent system that is heavily criticized nowadays is related to its complex fragmentation and the induced cost burden for applicants. Once a patent is granted by the EPO, the assignee must validate (and often translate) it and pay the renewal fees to keep it in force in each country in which the applicant seeks protection. The objective of this paper is to assess to what extent validation and renewal fees as well as translation costs affect the validation behavior of applicants. We rely on a gravity model that aims at explaining patent flows between inventor and target countries within the European patent system. The results show that the size of countries, their wealth and the distance between their capital cities are significant determinants of patent flows. Validation fees and renewal fees further affect the validation behavior of applicants. Translation costs seem to have an impact as well. The important role played by fees suggests that the implementation of cost-reducing policy interventions like the London Protocol would induce a significant increase in the number of patents validated in each European country.

Keywords: patent fees; validation fees; renewal fees; gravity model (search for similar items in EconPapers)
JEL-codes: O30 O31 O38 O57 (search for similar items in EconPapers)
Date: 2007-11-01
New Economics Papers: this item is included in nep-ino, nep-ipr and nep-pr~
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Related works:
Journal Article: Patent validation at the country level--The role of fees and translation costs (2009)
Working Paper: Patent Validation at the Country Level - The Role of Fees and Translation costs (2007)
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