Strategic Patent Acquisitions

Posted by D. Daniel Sokol

Fiona Scott Morton, Yale School of Management and Carl Shapiro, University of California, Berkeley - Haas School of Business explain Strategic Patent Acquisitions.

ABSTRACT: We report data on patent litigation activity initiated by patent assertion entities and discuss the tactics used by these entities to monetize the patents they acquire. We develop a simple economic model to evaluate the effect of enhanced patent monetization on innovation and on consumers. We then study the economic effects of several different categories of patent acquisitions based on the type of seller, the type of buyer, and the patent portfolio involved.