Patent Remedies and Technology Licensing: Evidence From a Supreme Court Decision
Remedies for infringement are important determinants of the strength of patent protection. However, there has been little emphasis on the role of patent remedies in profiting from innovation via licensing. To address this gap, we examined the impact of patent remedies on technology licensing. Our study exploited a US Supreme Court decision that reduced the probability of issuing injunctions as a remedy to compare US firms’ licensing propensity with that of a matched control group of European firms. We found that the decision reduced, on average, US firms’ propensity to license. This effect is driven mainly by small firms and especially those in discrete technological industries. This research contributes to the literature on profiting from innovation and presents several implications for firms’ licensing strategies.
OZDEN, S.A. et KHASHABI, P. (2023). Patent Remedies and Technology Licensing: Evidence From a Supreme Court Decision. Strategic Management Journal, In press.