Working Paper: NBER ID: w20785
Authors: Gatan de Rassenfosse; Adam B. Jaffe
Abstract: The paper investigates whether patent fees are an effective mechanism to deter the filing of low-quality patent applications. The study analyzes the effect on patent quality of the Patent Law Amendment Act of 1982, which resulted in a substantial increase in patenting fees at the U.S. Patent and Trademark Office. Results from a series of difference-in-differences regressions suggest that the increase in fees led to a weeding out of low-quality patents. About 14 per cent of patents in the lowest quality decile were filtered out, and the effect was especially visible for companies with a large patent portfolio. The study has strong policy implications in the current context of concerns about declines in patent quality.
Keywords: patent fees; low-quality patents; patent quality; difference-in-differences
JEL Codes: K21; O31; O34; O38
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Increased patent fees due to the PLAA (D45) | Reduction in low-quality patents (L15) |
| Increased patent fees due to the PLAA (D45) | Reduction in low-quality patents among firms with large patent portfolios (L15) |
| Increased patent fees due to the PLAA (D45) | Filtering effect more substantial for patents in lowest value decile (D45) |
| Increased patent fees due to the PLAA (D45) | Filtering effect more substantial for patents in lowest value quintile (D45) |