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Differentiated Standards and Patent Pools

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  • Schiff, Aaron
  • Aoki, Reiko

Abstract

We consider patent pool formation by owners of essential patents for differentiated standards that may be complements or substitutes in use. Pooling improves coordination in terms of royalty setting within a standard but provokes a strategic response from licensors in the competing standard. We characterise the incentives to form and defect from pools within standards and show how pool formation and stability depend on competition between standards. We also examine strategic patent pool formation by consortium standards and show that policies promoting compatibility of standards may increase or decrease welfare depending on the effects on the incentives to form pools.

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File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/14647/1/pie_dp336.pdf
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Bibliographic Info

Paper provided by Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University in its series PIE/CIS Discussion Paper with number 336.

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Length: 16 p.
Date of creation: Oct 2007
Date of revision:
Handle: RePEc:hit:piecis:336

Note: 14 September 2007
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Related research

Keywords: Patent pools; competing standards; consortium standards;

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Cited by:
  1. Nancy Gallini, 2011. "Private agreements for coordinating patent rights: the case of patent pools," ECONOMIA E POLITICA INDUSTRIALE, FrancoAngeli Editore, vol. 2011(3), pages 5-30.
  2. 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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