Information Content of Business Methods Patents

We examine the market reaction to business method patents granted to publicly-traded firms. Our findings suggest that the State Street decision represents a turning point not only for the growth in the number of business method patent filings, but also in the market's awareness and perception of value creation for the filing firms. The granting of a business method patent evokes a positive average stock-price reaction, especially in the post-State Street period. Cross-sectional differences in abnormal returns depend on the type of patent granted. The market reaction also differs based on industry classification