Intellectual property clearinghouses: The effects of reduced transaction costs in licensing
AbstractWe focus on downstream uses of intellectual property (IP) that combine multiple rights and examine the effects of introducing an IP clearinghouse. We identify the two sometimes conflicting functions of clearinghouses: transaction cost reductions and coordination. We show that reduced transaction costs cause licensors to raise royalties in some cases, which makes them worse off due to the [`]tragedy of the anticommons'. Downstream welfare effects may also be positive or negative and we characterize the effects on downstream manufacturers and final consumers. We also show that total welfare is most likely to increase following a transaction cost reduction when the number of intellectual property rights per downstream use is small, or if rights are relatively substitutable in downstream use, but it is also possible for welfare to decrease.
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Bibliographic InfoArticle provided by Elsevier in its journal Information Economics and Policy.
Volume (Year): 22 (2010)
Issue (Month): 3 (July)
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Web page: http://www.elsevier.com/locate/inca/505549
Intellectual property Licensing Tragedy of the anticommons Clearinghouses;
Other versions of this item:
- Aoki, Reiko & Schiff, Aaron, 2008. "Intellectual Property Clearinghouses: The Effects of Reduced Transaction Costs in Licensing," PIE/CIS Discussion Paper 359, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
- Aoki, Reiko & Schiff, Aaron, 2007. "Intellectual Property Clearinghouses: The Effects of Reduced Transaction Costs in Licensing," PIE/CIS Discussion Paper 335, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
- Aoki, Reiko & Schiff, Aaron, 2007. "Intellectual Property Clear inghouses: The Effects of Reduced Transaction Costs in Licensing," Discussion Paper Series a495, Institute of Economic Research, Hitotsubashi University.
- L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
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