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## Patents in the Knowledge-Based Economy (2003) Board on Science, Technology, and Economic Policy (STEP)

### Citation Manager

. "Patent Litigation - Enforcement of Patent Rights in the United States." Patents in the Knowledge-Based Economy. Washington, DC: The National Academies Press, 2003.

 Page 179

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Patents in the Knowledge-Based Economy

Similarly, Q(Xc) = L(Xc)/[L(Xc) + M(Xc)]. Solving for M and substituting, we get the result:

P(Xc) = Q(Xc)/[K(1 – Q(Xc))] (A.3.1)

##### Population Marginal Effects

For each characteristic Xk, the population marginal effect is

P(Xc)/∂Xkc = [dP(Xc)/dQ(Xc)] ∂Q(Xc)/∂Xkc

The last term is the sample marginal effect computed from the probit regression. From the expression for P(Xc) we get

dP(Xc)/dQ(Xc) = 1/K[1 – Q(Xc)]2

Measuring Q(Xc) by the sample probability of litigation in the class, Q, we get the result:

dP(Xc)/dQ(Xc) ≈ P/Q(1 – Q)

We measure P for each class as follows. For the denominator, we take the total number of patents in the class during 1978-1995. In the numerator we use the number of infringement or declaratory judgment suits that can be directly identified as such and include all others as infringement suits. These are inflated for underreporting and for truncation as described in Appendix 1. We then calculate marginal adjustment factors by USPC groups, infringement and declaratory judgment suits. Separate classes defined by cohort are not needed because of the maintained hypothesis that the litigation model applies to all cohorts, making nonsystematic sampling in this dimension unimportant. Results are at the bottom of Table 9. Because dP(Xc)/dQ(Xc) is the same for all Xk for a given class c, all sample marginal effects are adjusted by the same factor to convert them to population marginals.

 Page 179
 Front Matter (R1-R12) Introduction (1-16) Patent Quality - Are All Patent Examiners Equal? Examiners, Patent Characteristics, and Litigation Outcomes (17-53) Patent Examination Procedures and Patent Quality (54-73) Patent Quality Control: A Comparison of U.S. Patent Re-examinations and European Patent Oppositions (74-119) Benefits and Costs of an Opposition Process (120-142) Patent Litigation - Enforcement of Patent Rights in the United States (143-179) Patent Litigation in the U.S. Semiconductor Industry (180-216) Patents in Software and Biotechnology - Intellectual Property Protection in the U.S. Software Industry (217-258) Internet Business Method Patents (259-284) Effects of Research Tool Patents and Licensing on Biomedical Innovation (285-340)