Strategy scholars have documented in various empirical settings that firms seek and leverage stronger institutions to mitigate hazards and gain competitive advantage. In this paper, we argue that such “institution-seeking” behavior may not be confined to the pursuit of strong institutions: firms may also seek weak institutions to mitigate hazards. Using panel data from the global smartphone industry and recent patent wars among key industry rivals, we examine how smartphone vendors that are not directly involved in patent litigation strategically respond to increased litigation risks in this industry. We find that as patent wars intensify, smartphone vendors strategically shift more of their business toward markets with weaker intellectual property (IP) protection because of institutional arbitrage opportunities. This shift is more pronounced for vendors whose stocks of patents are small and whose home markets have weak IP systems. Our study is the first to examine the relationship between heterogeneity in national patent systems and firms’ global strategies. It provides a more balanced view of firms’ institution-seeking behavior by documenting how they make strategic use of weaker institutions.

In Patent Wars, one of America's leading patent scholars provides an accessible overview of U.S. patent law; the arguments for and against patents; and the ongoing debates over topics including the patentability of genes, software, and business methods, the impact of patents on drug prices, "patent trolls," and the smartphone wars.

Patent litigation has attracted scholarly attention to reconcile multiple views for new research. Accordingly, this paper addresses patent litigation strategy and its effect on the firm. Based on 106 papers and articles, six books, the author's logic and practice impressions, it first defines patent litigation strategy and differentiates similar concepts. Second, based on the process, the author fine-tunes patent litigation strategy into three tactics: threat, filing and verdict. Then, she categorizes and examines the impact of patent litigation on market value, monetary gain/loss and strategic collaboration. The findings show that the effect on the market value is more complex and ambiguous than anticipated, and sometimes contradictory. The analysis shows the consistency of monetary effect in practice, that firms tend to have higher monetary gains from private settlement than from legal awards. It also demonstrates that existing studies lag behind reality in investigating the detailed role of patent litigation on strategic collaboration from partnership (e.g. licensing and strategic alliance) to takeover (i.e. merger and acquisition). Finally, the author reflects on the findings, and maps out critical paths toward new research. This process also reveals that stakeholders, industrial settings and country environments moderate the studied relationship. This paper contributes to knowledge and practice: appreciates the interdisciplinary endeavors to draw the findings; categorizes patent litigation and its effect; and critiques prior studies on the relationship to integrate knowledge for future research.

From the "Diaper Wars" that pitted Procter & Gamble against Kimberly-Clark to disputes over high-temperature superconductors, veteran technology writer Fred Warshofsky tracks patent litigation's path to becoming one of the most potent financial tools of the 1990s. The stakes are enormous. For example, Honeywell Inc. more than doubled its net income for the third quarter of 1992 despite lower operating revenue by winning some dozen patent infringement suits against Japanese camera makers, including a tidy $96 billion from Minolta. Japanese companies frequently win. In a revealing analysis of the patent wars in Japan, Warshofsky shows how Japanese industries surround basic patents with clusters of patent modifications. In the global winner-take-all battle, this strategy gives them effective control over the licensing and usefulness of the original invention. The patent game becomes more complicated with the development of each new product and technology. Nowhere is the phenomenon more evident than in software, semiconductors, and biotechnology. Warshofsky delves into each of these highly sophisticated industries. In the software industry, for instance, Warshofsky dissects patent battles such as Apple v. Microsoft and Borland v. Lotus that have made front-page headlines. The Patent Wars is the first book to take an incisive look at this new business offensive and its consequences, including hackers and piracy in cyberspace. As more and more companies deliberately strive to prohibit competition and innovation, this stimulating and highly informative book will become essential reading for people in business and finance, technology-watchers, and policymakers.

FROM PATENT TO PROFIT Patents and patent strategies are increasingly pertinent to the success of information age businesses, from affecting valuations to gaining tax advantages to increasing the starting price per share when taking a company public. Patent Strategy illustrates the impact patents can have on technology-driven businesses' tactical and strategic efforts. Here is step-by-step guidance to the patent process, the laws, and basic strategies-from a business-goal perspective-so that middle and upper-level managers can recognize the significance of patents in relation to a particular business and can incorporate proper patent management efforts into their business framework. In addition, this book serves as an invaluable reference for management and executives when making patent-related decisions such as whether a patent infringement study must be performed; whether the budget for patent matters should be increased or decreased; whether attempts should be made to license certain patent technology; and whether the firm should sue for patent infringement. * Case studies throughout the book give you a specific business context within which to consider the concepts introduced * Statistics are presented to assist you in assessing various issues, planning patent strategies, and implementing patent management programs

Daniel Cahoy and Lynda Oswald have brought together some of the country's most prominent patent scholars outside the legal discipline. From the Leahy-Smith America Invents Act to recent court cases from the Supreme Court and the Federal Circuit, this timely, informative and well-edited volume examines the latest changes in US patent law and their impact on business strategy. The book is a must-read for anybody who wants to learn more deeply about the ever-increasing role of patents in the business environment.'> - Peter K. Yu, Drake University Law School, US Within the complex global economy, patents function as indispensable tools for fostering and protecting innovation. This fascinating volume offers a comprehensive perspective on the US patent system, detailing its many uses and outlining several critical legislative, administrative and judicial reforms that impact business strategy. The expert contributors to this book provide an overview of how the US patent system functions today and describe how recent changes affect firms and individual inventors. Topics discussed include the drivers of intellectual property policy; recent revisions to the patent application process in terms of the new first-to-file regime, inequitable conduct, and allowable subject matter; and changes to patent enforcement and infringement related to the Federal Circuit's special role and post-grant review. Contributors address recent legislation such as the 2011 America Invents Act, which enacted some of the most significant patent reforms in decades. This examination of the US patent system highlights some of the most important issues for business. It will serve as an important tool for both policymakers and business leaders, and will also interest students and professors of business and management studies, innovation studies and business law. Contributors C. Aceves, T.L. Anenson, D.L. Baumer, R.C. Bird, D.R. Cahoy, W.M. Chumney, J. Gehman, D.M. Gitter, Z. Lei, G. Mark, S.J. Marsnik, D. Orozco, L.J. Oswald, R.B. Sawyers, R.E. Thomas

This essay is the introduction to a book of the same title, forthcoming in summer of 2021 from Oxford University Press. The purpose is to document the ways in which patent systems are products of battles over the economic surplus from innovation. The features of these systems take shape as interests at different points in the production chain seek advantage in any way they can, and consequently, they are riven with imperfections. The interesting historical question is why US-style patent systems with all their imperfections have come to dominate other methods of encouraging inventive activity. The essays in the book suggest that the creation of a tradable but temporary property right facilitates the transfer of technological knowledge and thus fosters a highly productive decentralized ecology of inventors and firms.