African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4187

Full Length Research Paper

Market behavior of patent infringement litigations

Yi-Hsien Wang1*, Kuang-Hsun Shih1 and Ya-Hui Chuang2  
1Department of Banking and Finance, Chinese Culture University, No. 55 Hwa-Kang Road, Yang-Ming-Shan, Taipei, Taiwan 11114, Republic of China. 2Graduate School of Management Sciences, Aletheia University, Tamsui 251, Taiwan, Republic of China.
Email: [email protected]

  •  Accepted: 30 November 2009
  •  Published: 30 April 2010

Abstract

In recent years, the tremendous increase in the amount of patent infringement litigation within the information technology industry has incurred substantial damage on the part of patentees, such as the cost of litigation. Corporations have also been seriously affected. By adopting the event study method, this study explores how patent infringement litigation impacted stock prices listed in Taiwan from 1998 to 2008. Empirical results indicate that patent litigation negatively affects the prices of related, underlying stocks.
 
Key words: Patent infringement litigation, event study, abnormal return.