TY  - UNPB
ID  - eprints98
N1  - JEL codes: K40, O31, O34.
EP  - 47
KW  - Collusion
KW  -  Patent Challenge
KW  -  Patent Quality.
Y1  - 2009/07//
AV  - public
TI  - The Design of Post-Grant Patent Challenges
UR  - http://eprints.imtlucca.it/98/
A1  - Chiou, Jing-Yuan
M1  - working_paper
N2  - This paper proposes a patent challenge mechanism with partial patent rights previously
granted to the patent-holder as the challenge reward. Transferring patent
rights to a successful challenger raises the incentive to search for patent-defeating prior
art, and, after the discovery of the information, helps deter collusion between the
patent-holder and the challenger. It also reduces costly opportunistic patenting and
therefore improves patent application quality. However, from an ex post point of view,
over-search ensues when the collusion problem is severe. The optimal re-allocation of
patent rights, then, calls for a careful balance between these costs and benefits.


ER  -