Abstract
Although patent assets have become increasingly valuable in recent years, companies are still facing rising patent litigation costs. Drawing on a large sample of European patents, we studied how companies fine-tuned the endogenous characteristics of their patents to pursue an optimal patent design. According to the study's findings, companies can adjust certain patent features to increase the value of their patents, but this increases the risk of patent infringement litigation. As a result, companies are frequently forced to choose between maximizing patent value and minimizing the risk of litigation.
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