Intellectual Property Clearinghouses: The Effects of Reduced Transaction Costs in Licensing
AbstractWe focus on downstream uses that combine multiple intellectual property rights and examine the effects of introducing an intellectual property clearinghouse that reduces transaction costs associated with licensing. We show that this causes equilibrium royalties to rise in some cases and may harm licensors because clearinghouse by itself does not eliminate the 'tragedy of the anticommons'. Downstream welfare effects may also be positive or negative and we characterise 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 InfoPaper provided by Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University in its series PIE/CIS Discussion Paper with number 359.
Length: 24 p.
Date of creation: Mar 2008
Date of revision:
Note: "30 June 2007" -- p. 1
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Intellectual property; licensing; tragedy of the anticommons; clearinghouses;
Other versions of this item:
- Aoki, Reiko & Schiff, Aaron, 2010. "Intellectual property clearinghouses: The effects of reduced transaction costs in licensing," Information Economics and Policy, Elsevier, vol. 22(3), pages 218-227, July.
- 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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