When the clock starts ticking: Measuring strategic responses to TRIPS's patent term change

Jorge Lemus; Guillermo Marshall

doi:10.1016/j.respol.2018.02.008

When the clock starts ticking: Measuring strategic responses to TRIPS's patent term change

Jorge Lemus, Guillermo Marshall

Economics

Research output: Contribution to journal › Article › peer-review

Abstract

As a consequence of the patent term harmonization introduced by TRIPS, the term of U.S. patents became contingent on how quickly the patents are granted. We find that patent applicants strategically responded to this change in incentives. In the pharmaceutical industry, narrower patents with less detailed descriptions allowed applicants to reduce the approval time by 10.8% (170 days). Also consistent with a ticking clock, we find a reduction in the use of continuations across all industries. Our results suggest that the patent term change created long-lasting efficiencies in the patent office.

Original language	English (US)
Pages (from-to)	796-804
Number of pages	9
Journal	Research Policy
Volume	47
Issue number	4
DOIs	https://doi.org/10.1016/j.respol.2018.02.008
State	Published - May 2018

Keywords

Breadth
Continuations
Disclosure
Length
Patents
TRIPS

ASJC Scopus subject areas

Strategy and Management
Management Science and Operations Research
Management of Technology and Innovation

Online availability

10.1016/j.respol.2018.02.008

Library availability

Discover UIUC Full Text

Cite this

@article{4f3a74bd4b2a4d74b7fd3b6fb7a31133,

title = "When the clock starts ticking: Measuring strategic responses to TRIPS's patent term change",

abstract = "As a consequence of the patent term harmonization introduced by TRIPS, the term of U.S. patents became contingent on how quickly the patents are granted. We find that patent applicants strategically responded to this change in incentives. In the pharmaceutical industry, narrower patents with less detailed descriptions allowed applicants to reduce the approval time by 10.8% (170 days). Also consistent with a ticking clock, we find a reduction in the use of continuations across all industries. Our results suggest that the patent term change created long-lasting efficiencies in the patent office.",

keywords = "Breadth, Continuations, Disclosure, Length, Patents, TRIPS",

author = "Jorge Lemus and Guillermo Marshall",

note = "Funding Information: We wish to thank Julia Gonz{\'a}lez, Fernando Luco, Richard Miller, {\'A}lvaro Parra, Andrew Toole, Melissa Wasserman, and conference participants at International Industrial Organization Conference for helpful comments and suggestions. This research did not receive any specific grant from funding agencies in the public, commercial, or not-for-profit sectors. Appendix A",

year = "2018",

month = may,

doi = "10.1016/j.respol.2018.02.008",

language = "English (US)",

volume = "47",

pages = "796--804",

journal = "Research Policy",

issn = "0048-7333",

publisher = "Elsevier B.V.",

number = "4",

}

TY - JOUR

T1 - When the clock starts ticking

T2 - Measuring strategic responses to TRIPS's patent term change

AU - Lemus, Jorge

AU - Marshall, Guillermo

N1 - Funding Information: We wish to thank Julia González, Fernando Luco, Richard Miller, Álvaro Parra, Andrew Toole, Melissa Wasserman, and conference participants at International Industrial Organization Conference for helpful comments and suggestions. This research did not receive any specific grant from funding agencies in the public, commercial, or not-for-profit sectors. Appendix A

PY - 2018/5

Y1 - 2018/5

N2 - As a consequence of the patent term harmonization introduced by TRIPS, the term of U.S. patents became contingent on how quickly the patents are granted. We find that patent applicants strategically responded to this change in incentives. In the pharmaceutical industry, narrower patents with less detailed descriptions allowed applicants to reduce the approval time by 10.8% (170 days). Also consistent with a ticking clock, we find a reduction in the use of continuations across all industries. Our results suggest that the patent term change created long-lasting efficiencies in the patent office.

AB - As a consequence of the patent term harmonization introduced by TRIPS, the term of U.S. patents became contingent on how quickly the patents are granted. We find that patent applicants strategically responded to this change in incentives. In the pharmaceutical industry, narrower patents with less detailed descriptions allowed applicants to reduce the approval time by 10.8% (170 days). Also consistent with a ticking clock, we find a reduction in the use of continuations across all industries. Our results suggest that the patent term change created long-lasting efficiencies in the patent office.

KW - Breadth

KW - Continuations

KW - Disclosure

KW - Length

KW - Patents

KW - TRIPS

UR - http://www.scopus.com/inward/record.url?scp=85042144544&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85042144544&partnerID=8YFLogxK

U2 - 10.1016/j.respol.2018.02.008

DO - 10.1016/j.respol.2018.02.008

M3 - Article

SN - 0048-7333

VL - 47

SP - 796

EP - 804

JO - Research Policy

JF - Research Policy

IS - 4

ER -

When the clock starts ticking: Measuring strategic responses to TRIPS's patent term change

Abstract

Keywords

ASJC Scopus subject areas

Online availability

Library availability

Related links

Fingerprint

Cite this