Can patentee preference in patent infringement dispute resolution impact innovation?

Abstract

Evaluating the impact of intellectual property protection on innovation should include multiple perspectives, of which the impact of patent infringement remedies is an indispensable perspective. The two options for resolving patent infringement disputes in China include civil litigation (CL) and administrative adjudication (AA). Despite the fact that the judicial system has been emphasized as playing the leading role in intellectual property protection, patentees have shown a strong preference for AA since 2015. The general application of AA had been criticized by scholars. Does the patentee's preference bring inappropriate protection and stifled innovation? This study used regression models and 2008–2020 data on the choice of patent dispute resolution mode in China. The number of invention patent applications was the dependent variable, and choices for CL or AA were the independent variables. The choice of AA and the invention patent application were found to have a significant and positive association, implying that AA provides an appropriate level of intellectual property protection to incentivize innovation. Characteristics derived from AA should be valued and used as a reference to improve innovation policies.