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Chilling effects of patent trolls
Journal article

Chilling effects of patent trolls

Abstract

We find that non-practicing entities (NPEs) exhibit a unique legal strategy of sequential rounds: (1) subject to the same patent, NPE plaintiffs file approximately seven follow-on lawsuits after the initial lawsuit; and (2) when a firm is sued by NPEs, the likelihood of its technology peers being sued increases by 14 % in the subsequent year. Defendants' technology peers experience significant market value losses around the lawsuit filing date. …

Authors

Chen F; Hou Y; Qiu J; Richardson G

Journal

Research Policy, Vol. 52, No. 3,

Publisher

Elsevier

Publication Date

4 2023

DOI

10.1016/j.respol.2022.104702

ISSN

0048-7333