Coalition Formation for a Consortium Standard Through a Standard Body and a Patent Pool: Theory and Evidence from MPEG2, DVD and 3G
AbstractWe examine why cooperation among essential patent holders for a standard may not occur, despite significant gains for patent holders and users of the standard. Utilizing Maskin's (2003) framework, we show that a grand coalition can be implemented only if the number of patent holders (n) is small. When n is large, emergence of an outsider is inevitable, so that voluntary sequential negotiation cannot secure the socially efficient outcome. We also show that a firm specialized in research is more likely to become an outsider. We discuss the MPEG2, DVD and 3G patent pools in light of these results.
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Bibliographic InfoPaper provided by Institute of Innovation Research, Hitotsubashi University in its series IIR Working Paper with number 05-01.
Length: 25,  p.
Date of creation: Feb 2005
Date of revision:
Note: Presented to the Conference on IT Innovation, Tokyo, December 2004.
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- Akifumi Ishihara & Noriyuki Yanagawa, 2013. "Dark Sides of Patent Pools with Compulsory Independent Licensing," CARF F-Series CARF-F-318, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
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- Daniel Quint, 2006. "Economics of Patent Pools When Some (but not all) Patents are Essential," Discussion Papers 06-028, Stanford Institute for Economic Policy Research.
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