Template-type: ReDIF-Paper 1.0
Author-Name: Sterzi, Valerio  
Author-Email: valerio.sterzi@u-bordeaux.fr
Author-Name: Maronero, Cecilia
Author-Email: cecilia.maronero@u-bordeaux.fr 
Author-Name: Orsatti, Gianluca 
Author-Email: gianluca.orsatti@unito.it
Author-Name:  Vezzulli, Andrea
Author-Email: andrea.vezzulli@uninsubria.it
Author-Workplace-Name: University of Turin
Author-Workplace-Homepage: http://www.est.unito.it/
Title: Non-Practicing Entities and their patent acquisition activity in Europe.
Abstract: This paper investigates the expansion of non-practicing entities (NPEs), a widely-discussed
subject in both academic and public policy circles, particularly in the United States. There is a
prevalent belief that Europe is less exposed to NPEs due to a robust patent system, increased
enforcement costs, and smaller damage awards. However, by using a newly compiled database of
NPE patent applications at the European Patent Office (EPO), this study reveals a growing presence
of NPE activity in Europe, with ownership of nearly 20,000 EPO patents, predominantly in the field
of Electrical Engineering. Furthermore, the paper contributes to the existing literature by examining
the heterogeneity of the NPE business model and its correlation with the characteristics and
utilization of targeted patents. The econometric analysis presented in this study yields three
significant findings. Firstly, NPEs with a higher inclination for litigation (referred to as "Litigation"
NPEs) acquire patents with elevated infringement risk but comparable technological quality to those
obtained by practicing entities. Secondly, patent aggregators (identified as "Portfolio" NPEs) and
technology companies (termed "Technology" NPEs) acquire patents of superior quality compared
to those secured by practicing entities. Thirdly, patent acquisitions by "Litigation" NPEs and
"Portfolio" NPEs result in a decrease in the subsequent utilization of protected technologies..
Length: pages 39
Creation-Date: 2023-12
File-URL: https://www.est.unito.it/do/home.pl/Download?doc=/allegati/wp2023dip/wp_22_2023.pdf
File-Format: Application/PDF
Handle: RePEc:uto:labeco:202306