Market behavior of patent infringement litigations

Abstract

In recent years, the tremendous increase in the amount of patent infringement litigation within the information technology industry has incurred substantial damage on the part of patentees, such as the cost of litigation. Corporations have also been seriously affected. By adopting the event study method, this study explores how patent infringement litigation impacted stock prices listed in Taiwan from 1998 to 2008. Empirical results indicate that patent litigation negatively affects the prices of related, underlying stocks.

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