The Causes and Economic Consequences of Patent Litigation

Abstract

A survey of patent litigation in the Taiwan electronics industry between 2010 and 2015 provides insight into the causes and economic consequences of patent litigation. This survey had three key what were the findings of this study? First, companies with patents for new inventions are more likely to file plaintiff-initiated lawsuits and less likely to suffer defendant-related lawsuits. Second, credit ratings can reflect the effects of patent litigation and industry expertise on their rating decisions in cases where companies involved in patent litigation are audited by industry experts. Third, auditors with industry expertise tend not to be as concerned when their clients face patent litigation as those without such expertise.