Abstract: In the technology transaction, the relationship between patent holders and competitors (potential infringers) is a typical leader-follower strategy. And the sequence of actions influences the payoff of both sides greatly. Models of "leader-one follower" and "leader-multiple followers" are set up respecti-vely, in order to analyze the strategies and equilibria in situations that a patent holder faces single or multiple competitors. According to the "leader-one follower" model, the corollary "likelihood of entry increases with the penalty" can only exist if the competitor acts preemptively. And results from the "leader-multiple followers" model indicates that the "leading advantage" lies definitely with the holder and that competitors need preemption to maximize their payoff by stimulating the holder to mitigate the litigation.

Key words: patent transaction, patent infringement, leader-follower strategy, Nash equilibrium