Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 15, 2022 erstellt
Description:
Routinely granted injunctions during patent lawsuits have been regarded as a significant obstacle to economic growth and corporate competition. We use the 2006 Supreme Court ruling in eBay v. MercExchange that reduced injunction likelihood in cases related to information and communications technology (ICT) patents to examine the effect of the reduced injunction likelihood on firms’ market values. We find that affected firms’ stock prices react favorably to this reduced injunction likelihood. Firms with reduced injunction likelihood become more profitable and explore more in branding and patenting activities. These effects concentrate in firms with lower cash holdings and greater financial constraints