Econometric Society 57th European Meeting
25th August 2002 - 28th August 2002, Venice, Italy

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PATENTS, SEARCH OF PRIOR ART AND REVELATION OF INFORMATION


Category: Economic Theory
Industrial Organisation I
Sunday 25th August 2002, 14:30 - 16:00, Room: 2.1
Session Chair(s): Rabah Amir, CORE, BELGIUM

Presenter(s): Langinier, Corinne

Co-Author(s): Marcoul, Philippe

Keyword(s): incentive, information, patents

JEL(s): D83, O31, O34

Abstract:

"Business-method-software" patents have been strongly debated. PTO's examiners are accused of granting patents to non deserving-innovations. But innovators are liable too, as they do not search for the relevant prior art. We propose a model of bilateral search of information. The innovator undertakes a costly search of prior art, and becomes privately informed of the value of the innovation. Then, he applies for a patent and reveals some prior art to the PTO. The PTO performs a complementary search to assess the patentability of the innovation. An innovator can conceal some information to increase the probability of being granted a patent. To induce the innovator to search for more prior art, the PTO should commit to an assessment contingent on the quantity of prior art revealed by the innovator.


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Paper Reference Number: 749

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57th European Meeting
25th August 2002 - 28th August 2002, Venice, Italy

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