I analyze the importance of patent rights and their enforcement in the United States as done by the Court of Appeals for the Federal Circuit. In doing this I point out the importance of correcting for selection bias that is present in the data when conducting analysis of litigation outcomes. I also provide a theoretical basis for a model for conducting this analysis. My research shows that the Court of Appeals is not a pro-patent court, instead the courts pro-patentness varies according to the technology area of the patent. This shows how the court can play a role in varying the effective scope of the patent for different technologies. We also see that the appellate court defers to the decision of the lower court and that in a declaratory judgment case the appellate court is likely to decide in favor of the patentee. Additionally we see that appeals are more likely to take place when the litigation involves higher stakes. Also the uncertainty of a case being appealed is higher for larger differences in legal sophistication between litigants.
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