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

Abstract

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.