Research Summary
Research Summary
Entry deterrence via strategic litigation
Description
This paper analyzes the use of litigation by incumbents to deter entry by new firms. Specifically, I look at a context where incumbent firms own patents that confer a limited monopoly period in the market. In the US pharmaceutical industry, regulation provides for generic firms to attempt to enter the market prior to the expiration of patents. To defend their markets, incumbents (branded pharmaceutical firms) can initiate patent infringement litigation against entering firms (generic firms). Using data on pre-expiration generic applications from 1984-2006, I analyze the drivers of litigation to deter entry and the outcome of the litigation.
Last updated: 5 July 2007
Last updated: 5 July 2007