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Patent Infringement, Technology Selection, and Non-Practicing Entities

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Author NameOHNO Yuka  (Hokkaido University)
Creation Date/
July 2013  13-J-050
Research ProjectEconomic Analysis of Technology in the Global Economy
Download / Links Download paper [PDF:348KB] (Japanese)


I construct a simple thee-period game to investigate the effects of patent infringement litigations and patent ownership by non-practicing entities (NPEs) on technology selection for a new product. A firm may choose to embed fewer high-tech features into the new product in order to avoid or delay potential patent infringement lawsuits. NPEs tend to bring patent infringement lawsuits later than practicing entities (PE). In contrast to commonly believed, the technology-adopting firm may be willing to incorporate more technology features when the potentially-infringing patents are owned by an NPE than by a PE.

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