The Value of Patent and Trademark Pairs

The valuation of patents is assessed with respect to complemental IP strategies such as trademarks, design patents and utility models. I elaborate a novel method and database to gauge the combination of IP strategies regarding the same innovative project, when the patenter pairs the patenting strategy with other formal IP mechanisms. In particular I analyze jointly the content of legal documents using textual matching algorithms, and I link them with estimates on the market value of patents and historical renewal fee costs. I find ample evidences that patent and trademark pairs have a large impact both on the patent asset value and the premium value of the IP protection, and they are disproportionally associated with breakthrough inventions. One additional patent and trademark pair yields an increase of about PPP $ 80 million in the asset value, and it doubles the average premium value. These results hold after controlling for several patenter demographic characteristics and patent value indicators typically used in the literature. To interpret these finding I argue on the signalling function of the IP strategies. A patent and trademark pair constitutes a signalling device of the high expected value of the underlying invention from a commercial point of view.