Determinants of patent infringement awards in the US, Japan, and China: A comparative analysis

Patent litigations are essential measures to maximize returns from research and development. Although major countries have promoted pro-patent policies, there are significant differences in patent infringement awards among jurisdictions. This article comparatively analyzes determinants of patent infringement awards in the US, Japan, and China using 880 court decisions between 2000 and 2014. We find that Japan's judges attach more weight to a litigated patent's technological importance, whereas judges in the US and China prioritize its private economic value. Besides, damages ruled by US juries are almost unpredictable, while judges provide the most predictable decisions. We also find that the jury system can explain both the variation in the US patent infringement awards and the difference with awards in Japan, but the treble damage system can only explain the former. These results provide novel empirical evidence for public policy debates on patent protection and practical insights for intellectual property professionals.