The Value of Patent and Trademark Pairs

The valuation of patents is assessed with respect to complemental IP strategies, such as trademarks and design patents. I elaborate a novel method and database to gauge the combination of IP strategies regarding the same innovative project, when the patentee 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 premium value of patent protection. I find ample evidences that a pairing strategy based on the combination of patents and trademarks has a large impact on patent valuation with a net increase of about twice the average premium value. The results hold after controlling for several patentee demographic characteristics and patent value indicators typically used in the literature. To interpret these finding I argue on the signaling function of the combined IP strategies. A patent and trademark pair constitutes a signaling device of the high expected value of the underlying invention from a commercial point of view.