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

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dc.contributor.authorDiestre, Luis
dc.contributor.authorLumineau, Fabrice
dc.contributor.authorDurand, Rodolphe
dc.contributor.rorhttps://ror.org/02jjdwm75
dc.date.accessioned2025-03-06T09:33:03Z
dc.date.available2025-03-06T09:33:03Z
dc.date.issued2023-07
dc.description.abstractWe explore how multimarket contact (MMC) explains competitors' intellectual property (IP) infringementlitigation 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 innovator in shared markets. Alternatively, this increase in MMC leads to a 14.3 % increase (no increase) in the probability of infringement and a 5.2 (16.4) percent decrease in the probability of litigation when the rival (focal firm) plays the role of an imitator in shared markets.
dc.description.peerreviewedyes
dc.description.statusPublished
dc.formatapplication/pdf
dc.identifier.citationDiestre, L., Lumineau, F., & Durand, R. (2023). Litigate or let it go? Multi-market contact and IP infringement-litigation dynamics. Research Policy, 52(6), 104784. https://doi.org/10.1016/j.respol.2023.104784.
dc.identifier.doihttps://doi.org/10.1016/j.respol.2023.104784
dc.identifier.issn1873-7625
dc.identifier.urihttps://hdl.handle.net/20.500.14417/3628
dc.issue.number6
dc.journal.titleResearch Policy
dc.language.isoen
dc.page.total13
dc.publisherElsevier
dc.relation.departmentStrategy
dc.relation.entityIE University
dc.relation.schoolIE Business School
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.accessRightsinfo:eu-repo/semantics/openAccess
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/deed
dc.subject.keywordMultimarket contact
dc.subject.keywordRole congruity theory
dc.subject.keywordIntellectual property infringement
dc.subject.keywordLitigation
dc.titleLitigate or let it go? Multi-market contact and IP infringement-litigation dynamics
dc.typeinfo:eu-repo/semantics/article
dc.version.typeinfo:eu-repo/semantics/publishedVersion
dc.volume.number52
dspace.entity.typePublication
relation.isAuthorOfPublication9c2e697b-9b71-43c9-9c90-6d207e4fb494
relation.isAuthorOfPublication.latestForDiscovery9c2e697b-9b71-43c9-9c90-6d207e4fb494
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