Delays In International Patent Application Outcomes
Source: University of Melbourne
One component of the duration of pending patents - why applicants choose to delay the examination process - is modeled. The authors use a matched sample of 9,597 patent applications. Controlling for differences between patent offices, they find evidence of strategic behavior by applicants. The patent system exists to stimulate inventive activity and mitigate the market failure associated with the expropriation of innovation profits. However, designing the rules of the patent examination process is complex and opportunities often arise for patent applicants to engage in rent-seeking behavior and thus a loss of social welfare.