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Litigate or let it go? Multi-market contact and IP infringement-litigation dynamics by Luis Diestre; Fabrice Lumineau; Rodolphe Durand is a Business, Management and Accounting article available to read on EtoBox.

What is Litigate or let it go? Multi-market contact and IP infringement-litigation dynamics about?

We explore how multimarket contact (MMC) explains competitors' intellectual property (IP) infringement-litigation dynamics. We build on role congruity theory to propose that the role played by each firm in shared markets generates expectations about their behavior, determining which of the following dynamics arise: mutual forbearance (low probability of IP infringement and high probability of litigation) or mimetic behavior (high probability of IP infringement and low probability of litigation). We look into two possible roles, imitators and innovators, and claim that (1) mutual forbearance dynamics are more likely to arise when firms play the role of innovators, whereas (2) mimetic behavior dynamics are more likely to arise when firms play the role of imitators. We find support for our predictions in a sample of 813 patent infringement cases in the biopharmaceutical industry. Increasing MMC from one standard deviation below the mean to one standard deviation above the mean leads to a 21.6 (20.6) percent decrease in the probability of infringement and a 22.7 (65.1) percent increase in the probability of litigation after infringement when the rival (focal firm) plays the role of an

Who reads Litigate or let it go? Multi-market contact and IP infringement-litigation dynamics?

Author

Luis Diestre; Fabrice Lumineau; Rodolphe Durand

Publisher

Elsevier BV

Published

2023

Language

EN

Field

Business, Management and Accounting (Social Sciences)