Deal or No Deal? Licensing Negotiations in Standard-Setting Organizations
AbstractTechnical standards benefit consumers and producers by facilitating productadoption, promoting compatible solutions, and helping to create anecosystem of products and services in which competition can thrive. However,standards also may create opportunities for the exercise of market power. Owners of patents with claims that are essential to a standard may â€œhold upâ€ firms or consumers that are â€œlocked-inâ€ to a standard by charging high royalties for the use of products that comply with the standard. This licensor (or seller) market power3 arises â€œex post,â€ i.e., after firms and consumers have made investments that are specific to the standard.
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Bibliographic InfoPaper provided by Competition Policy Center, Institute for Business and Economic Research, UC Berkeley in its series Competition Policy Center, Working Paper Series with number qt6kv798tf.
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- Hiroshi Kitamura & Noriaki Matsushima & Misato Sato, 2013. "How Does Downstream Firms' Efficiency Affect Exclusive Supply Agreements?," ISER Discussion Paper 0878, Institute of Social and Economic Research, Osaka University.
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