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This paper aims to study the effects of the strength of patent enforcement on economic growth following the signing of the agreement on Trade-Related Aspects of Intellectual Property Rights and the role of inward foreign direct investment (FDI) flows in mediating and enhancing this relationship.

Following a generalized method of moments methodology, use is made of a new longitudinal index measuring the strength of enforcement-related aspects of patent systems.

Stronger levels of patent enforcement have a significant positive effect on the economic growth of both developed and developing countries. Importantly, inward FDI flows have a mediating role in positively boosting this effect for all countries and particularly for developed countries.

This is the first empirical study of the role of the strength of patent enforcement (“law in action”) in stimulating economic growth, as previous empirical studies have focused on the effect of the strength of patent law protection (“law on the books”). The failure in the past to allow for “law in action” was mainly due to the lack of available data that could proxy for the strength of patent enforcement levels in a country. This study utilizes a newly published, longitudinal index that captures the strength of the enforcement-related aspects of patent systems.

I begin with a dispute over a fox hunt, by which to understand the law of tangible property, then develop that metaphor for the major types of intellectual property. I start with domestic U.S. patent law for the sake of concreteness, and generalize to other jurisdictions and types of intellectual property. In the latter parts of the paper I discuss the international implications of intellectual property, including especially the effects of information spillovers. The last part of the paper describes the hazards in analogizing “trade” in intellectual property rights to trade in goods, and particularly in interpreting international patent data. These hazards motivate the search for a structural model specially adapted to the purpose of valuing international intellectual property rights and rules. The goal is to give economists a simple and integrated framework for analyzing intellectual property across time, jurisdiction and regime type, with an eye towards eventually developing other incentive systems that have the advantages of property (such as decentralized decision-making), but fewer of the disadvantages.

Patent litigation consists of non-market actions that firms undertake to access intellectual property rights defined by prior legislation and enforced by the courts. Thus, patent litigation provides an interesting context in which to explore aspects of firm’s non-market strategies. In contrast with prior non-market strategy research that has largely focused on how political institutions define the rules of the game for market competition, non-market actions within patent litigation primarily seek to access and apply these broad policies to specific situations, products, or assets that matter to the firm. Furthermore, because such non-market actions are directly influenced by the firms’ market strategies, they represent a promising area for research on integrated (market and non-market) strategies as well.

The goal of this paper is to explain how generic patent strategies that firms use to support their competitive advantage in the product-market influence non-market outcomes related to the timing of patent litigation resolution. In contrast with prior research that has studied settlement in patent litigation essentially as a one-shot bargaining game, this paper seeks to explain litigation resolution as an outcome of the competing mechanisms of settlement and adjudication that operate continually during litigation. Using a large sample of patent litigations in research medicines and computers, I model the timing of patent litigation resolution in a proportional hazards framework, wherein settlement and adjudication are competing risks. The evidence found is consistent with the proposition that the speed with which patent litigation is resolved by either settlement or adjudication reflects the use of proprietary, defensive, and leveraging patent strategies by firms. These findings also help to explain unexpected and anomalous findings regarding the settlement of patent litigation reported in prior research.

Globalization should provide firms with an opportunity to leverage their know-how and reputation across countries to create value. However, it remains challenging for them to actually capture that value using traditional Intellectual Property (IP) tools. In this paper, we document the strong growth in patents, trademarks, and industrial designs used by firms to protect their IP globally. We then show that IP protection remains fragmented; the quality of IP applications might be questionable; and developing a comprehensive IP footprint worldwide is very costly. Growing numbers of applications are causing backlogs and delays in numerous Patent and Trademarks Offices and litigation over IP rights is expensive, with an uncertain outcome. Moreover, local governments can succeed in transferring value to local firms and influencing global market positions by using IP laws and other regulations. In essence, the analysis shows a global IP environment that leaves much to be desired. Despite these challenges, there are successful strategies to capture value from know-how and reputation by leveraging an array of IP tools. These strategies have important implications for management practice, as we discuss in our concluding section. Global companies will need to organize cross-functional value capture teams focused on appropriating value from their know-how and reputation by combining different institutional, market, and nonmarket tools, depending on the institutional and business environment in a particular region.

The purpose of this paper is to explore the instrumental role that copyright and trademark enforcement strength plays in stimulating licensing flows in 21 countries.

In so doing, panel data methodology serves as the empirical platform upon which the investigation between the trademark and copyright enforcement strength levels of 21 countries and the choice between unaffiliated and affiliated licensing of US firms for the period 1998-2011 is conducted.

The evidence suggests that both copyright and trademark enforcement strength have a highly significant effect on licensing and, more specifically, that stronger levels of enforcement stimulate higher levels of unaffiliated licensing.

The authors use the two longitudinal indices of copyright and trademark enforcement strength which capture the effectiveness and efficiency with which copyrights and trademarks are enforced in 21 countries.

Unlike well-documented market or behavioral uncertainty, patent uncertainty has been significantly under-explored in the field of international entrepreneurship. Drawing on an institution-based view of strategy, this study investigated Netac, a Chinese knowledge-based international new venture (KINV), which was facing uncertainty over patents in China and the US. The aim was to address two questions: (1) how does patent uncertainty emerge in the context of KINVs? And (2) how can KINVs navigate patent hazards by interacting with national patent institutions?

A longitudinal single-case study approach was adopted as the most appropriate method for exploring novel business phenomena and dynamic processes.

Results suggested that a KINV can adopt strategies to build a unique identity and so better conform to the expectations of institutions that ultimately decide on patent validity. Strategies may involve building institutional awareness, amplifying mass media effects, and strategically managing the intellectual property and socio-emotional tensions between China and the US.

This study introduced the notion of patent uncertainty into research around international new ventures, highlighting how this type of uncertainty in the advanced technology sector can affect the end-product and patent licensing opportunities of KINVs. It also explored the institution-based view of company strategy in the internationalization process by emphasizing interactive institutional mechanisms, and the role of an organization’s identity when interacting with institutions. The study enriches the literature on institutional theory and organizational identity, and also suggests solutions for firms dealing with efforts by competitors to invalidate patents.

This chapter discusses current issues raised by the use of patents in university-industry technology commercialization. After introducing how patent laws operate in the global marketplace, this chapter provides an overview of the U.S. patent system, describing aspects of the process by which patents are obtained and enforced. The focus of the chapter then turns to some of the benefits and costs to academia of the impact of the Bayh-Dole Act, which allows universities to capture returns from federally funded research. The chapter identifies some of the challenges created by the expanding scope of subject matter eligible for patent protection and concludes with a discussion of some of the issues and opportunities associated with the strategic licensing and enforcement of patents that may impact invention and innovation in the academy and beyond.

The purpose of this article is twofold; to verify the existence of different profiles of firms based on the level of sophistication of their patent management core processes and to test the impact of the interplay between two patent management supporting dimensions, namely patent strategy and organization for patenting, on the level of sophistication of patent management core processes.

The method consists of a survey study, collecting data from a set of European patent management professionals. These data are analyzed with factor analysis, cluster analysis and regression analysis to test several hypotheses.

The results show that patent strategy positively and significantly impacts patent management sophistication, and that the patent organization positively moderates this relationship. In other words, a patent strategy, supported by a well-developed patent organization and culture, will positively influence the processes of managing a firm's patent portfolio.

This study is, to the authors’ knowledge, the first one to provide quantitative evidence that supports the notion that it is important to take a strategic and organizational perspective of patent management.

This article reviews emergent global trends in intellectual property protection and identifies patenting as a strategic initiative. Recent developments in software and method‐of‐doing‐business patenting are fast transforming the e‐business landscape. The article discusses the emergent global regulatory framework concerning intellectual property rights and the strategic value of patenting. Important features of a corporate patenting portfolio are described.

Scholars of business, economics, and law have long recognized that rights to intellectual property (IP) intimately shape innovative activity and the pursuit of profits. More than 60 years ago, Michal Polanyi voiced the following concerns about awarding property rights to creations of the “intellect”:The law…aims at a purpose which cannot be rationally achieved. It tries to parcel up a stream of creative thought into a series of distinct claims, each of which is to constitute the basis of a separately owned monopoly. But the growth of human knowledge cannot be divided into such sharply circumscribed phases. Ideas usually develop gradually by shades of emphasis, and even when, from time to time, sparks of discovery flare up and suddenly reveal a new understanding, it usually appears that the new idea has been at least partly foreshadowed in previous speculations. (Polanyi, 1944, pp. 70–71)