Abstract

The harmonization of European patent (EP) systems through the upcoming European Unitary Patent (UP) is one of the largest recent changes in a major intellectual policy regime. Using a model of patent renewals and data for chemical patents granted in 2000 by the European Patent Office we find that i) the average EP patent is worth 230K€; ii) essentially all inventors would have used UP had it been available; iii) private value of patents increases by 7% on average with the largest contributions coming from increased patent length and reduced fees; iv) private value of patents is 55 – 58% and consumer surplus 42 – 45% of total surplus; and v) welfare increases by only 1% as consumer surplus is reduced by 6%.