Patent Litigation Strategy and Its Effects on the Firm

Yang, Deli

doi:10.1111/ijmr.12202

Cited by 16 publications

(9 citation statements)

References 102 publications

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“…They constantly track the changes in national public policies concerning animal welfare, public expectations, and the boundaries at what the courts can or will tolerate, then create the appropriate courtroom moments for new litigation strategies. In fact, we have observed comparable trends in the evolution of strategic litigation in other domains, such as intellectual property rights protection and environmental protection [63][64][65][66]. In this study, we notice and observe that a new litigation strategy themed in One Health is frequently used in civil lawsuit cases involving zoonotic diseases tactically.…”

Section: The Emerging Litigation Strategy Themed In One Health In Animal Health Lawsuitssupporting

confidence: 56%

Is One Health a Viable Strategy in Animal Health Litigation: Evidence from Civil Lawsuits in China

Chen

et al. 2021

Animals

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Several litigation strategies are used to gain support from courts in order to protect animals. While the emerging litigation strategy themed in One Health stimulates judicial protection in the animal health sector, little is known about whether and how such strategies are supported by courts. In this article, we investigate how animal welfare litigation strategies influence judge’s choices within their discretion. We argue that litigators equipped with the litigation strategy themed in One Health are placed in an advantageous position in animal health cases, but that this tendency varies markedly across zoonoses. Specifically, we suggest that litigators utilizing One Health’s litigation strategy are associated with higher probabilities to win, whereas normal litigators are not. Further, we propose that litigators equipped with the One Health litigation strategy are awarded more damages from judges. We test and find support for our predictions using a cross sectional dataset of civil lawsuit cases centering on the animal health industry in Chinese mainland. Our findings indicate that courts indeed were persuaded by the One Health litigation strategy, even when bound by the discretion rules. At the same time, we suggest that for advocates who would like to litigate for animal welfare in the animal health sector, the litigation strategy themed in One Health might have potentially positive implications.

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Section: The Emerging Litigation Strategy Themed In One Health In Animal Health Lawsuitssupporting

confidence: 56%

Is One Health a Viable Strategy in Animal Health Litigation: Evidence from Civil Lawsuits in China

Chen

et al. 2021

Animals

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“…The extant literature has shown that corporate lawsuits have a direct and significant impact on firms’ performances (Yang, 2019; Bagley, 2005), which makes us believe that to explore the antecedents of firms’ legal strategy. As the above analysis shows, executive legal expertise does matter in corporate legal strategy.…”

Section: Resultsmentioning

confidence: 99%

Do professionals really matter? Top executive legal expertise and firm lawsuits

Huang,

Gao,

Cai

et al. 2023

CMS

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Purpose This study aims to use institutional and upper echelons theories to comprehensively investigate the intricate interplay between TMT legal expertise and firms' adaptive strategies in legal contexts, notably within emerging economies. It explores how upper echelons experiences shape opportunistic compliance strategies, impacting value and risk perceptions. Drawing on upper echelons theory, the research probes how TMT legal expertise molds firms’ involvement in significant lawsuits, accounting for influential roles. It scrutinizes TMT’s impact on legal strategies, positing that managerial discretion emerges from environmental factors, organizational attributes and executive traits. The study underscores TMT’s internal incentives and external factors’ interplay, molding strategic legal engagement. Design/methodology/approach To validate this framework, statistical analysis is performed on data from 2,584 Chinese-listed firms. The data set spans 2010–2015, with 5,713 material lawsuits. Chosen due to reliable institutional-level incentives data from the China Market Index Database, years 2016–2019 are excluded for methodological disparities. Moreover, 2007–2009 is omitted to mitigate the potential financial crisis impact. This study’s 11,272 observations ensure robust empirical exploration, offering insights into the interplay of TMT legal expertise, institutional factors and firms’ legal strategies. Findings The study reveals that firms led by executives with legal expertise are more prone to engage in significant lawsuits, indicating strategic use of legal skills. TMT age moderates this, with older teams less likely to engage. TMT tenure’s effect remains unclear due to tenure-risk preference complexity. Institutional factors matter; less legally mature regions reduce managers’ legal risk intention. Results confirm hypotheses and highlight executive human capital’s impact on firms’ legal strategies. Research limitations/implications This study acknowledges contributions while highlighting limitations, including the need for detailed distinctions in lawsuit roles and exploration of heterogeneous TMT power dynamics. Further research is proposed for nuanced power dynamics and comprehensive TMT legal background data. The study advances upper echelons theory by introducing TMT legal expertise as a factor influencing strategic lawsuit behavior. It challenges institutional theory by showing the adaptable legal context, beyond fixed constraints. Moderating factors – group risk attitude and external knowledge – deepen understanding of upper echelons’ impact. Enhanced data collection is encouraged to address limitations and refine findings. Practical implications This study’s implications extend to managerial practices. Firms should acknowledge the dynamic legal system, using TMT legal expertise for strategic legal challenges. Executives should pragmatically approach regulations. While legal professionals enhance compliance, caution is needed in selecting TMT members with legal expertise due to the risk of misusing it for unnecessary litigation, potentially misaligned with financial performance goals. Originality/value This study combines institutional and upper echelons theories to explore TMT legal expertise’s impact on firms’ adaptive strategies in emerging economies. It challenges the idea of a universally constraining legal environment and highlights how TMT legal expertise enhances firms’ management of complex legal risks. The research introduces TMT legal expertise as an influencing factor in strategic lawsuits, revealing nuanced relationships between legal contexts and strategic decisions. The findings enrich upper echelons theory, challenge conventional institutional views and identify moderating factors that deepen the understanding of upper echelons’ influence in legal landscapes.

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“…In the modern innovation economy, the competition for IP is becoming increasingly fierce, and the demand to understand its dynamics has grown significantly. Among other strategic elements, patent litigation is of great importance for firms due to its lengthy disputes, substantial costs, and enormous risks for both plaintiffs and defendants [6,7,8]. The network science approach to understanding inter-firm patent litigation relationships is of high significance.…”

Section: Introductionmentioning

confidence: 99%

Inter-firm patent litigation networks: a study of network motif analysis

Kito,

Murata,

Yamanoi

et al. 2024

Front. Phys.

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Despite the recent complex intertwining of firms in fierce intellectual property disputes, the formation mechanisms of patent infringement litigation relationships between firms have been little studied from a network science perspective. We construct an inter-firm patent litigation network using longitudinal data on patent infringement litigation and the firms involved in the US, and examine its structural characteristics and the mechanisms of tie formation through network motif analysis, linking it to existing knowledge on negative ties. The results reveal the significant influence of mechanisms such as homophily, popularity, and activity on network formation, with reciprocity emerging as a pivotal factor. The absence of triadic closure is also observed. This distinct structural pattern is consistent across different technological fields and throughout the 20-year period. Furthermore, our analysis delves into the rapid countersuit strategies common within this network and provides valuable insights into patent litigation strategies between firms.

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Patent Litigation Strategy and Its Effects on the Firm

Cited by 16 publications

References 102 publications

Is One Health a Viable Strategy in Animal Health Litigation: Evidence from Civil Lawsuits in China

Is One Health a Viable Strategy in Animal Health Litigation: Evidence from Civil Lawsuits in China

Do professionals really matter? Top executive legal expertise and firm lawsuits

Inter-firm patent litigation networks: a study of network motif analysis

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