Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/67509
Authors: 
Cremers, Katrin
Schliessler, Paula
Year of Publication: 
2012
Series/Report no.: 
ZEW Discussion Paper 12-084
Abstract: 
This paper looks at the decision to settle patent litigation in Germany from a new angle by focusing on detailed data on within-trial actions and motivations by plain-tiff, defendant and the courts. Using a new dataset covering about 80% of all patent litigation cases in Germany between 2000 and 2008 we estimate the likelihood of within-trial settlement. We find that the within-trial settlement decision is to some degree driven by the proceedings that change the pre-trial setting of the negotiations in terms of information and stakes and make previously refused settlement a new option. Additionally, firm-specific stakes as measured by the relation of the involved parties to the disputed patent as well as firm-specific strategies are found to affect the general willingness to settle after the filing of a court case. The results suggest that pre-trial failure of settlement negotiations can to some extent be offset by within-trial settlement through efforts made by court and involved parties, but that the disposition to settle is to a larger degree determined by firm-specific stakes and strategies in the case.
Subjects: 
Patent
Patent Litigation
Settlement
JEL: 
O34
K41
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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