attention. This paper fills that gap by asking how patent acquisitions interact with firm investment policy. I find that patent … more technological expertise and investment opportunities acquire more patents. Patent sales are the dominant type of … contract and maximize investment incentives; patent licenses frequently contain royalties, which induce under-investment …

In several key industries, including semiconductors, biotechnology, computer software, and the Internet, our patent … system is creating a patent thicket: an overlapping set of patent rights requiring that those seeking to commercialize new … technology obtain licenses from multiple patentees. The patent thicket is especially thorny when combined with the risk of hold …