Patent Pools and Cross-Licensing in the Shadow of Patent Litigation
AbstractThis paper develops a framework to analyze the incentives to form a patent pool or engage in cross-licensing arrangements in the presence of uncertainty about the validity and coverage of patents that makes disputes inevitable. It analyzes the private incentives to litigate and compares them with the social incentives. It shows that pooling arrangements can have the effect of sheltering invalid patents from challenges. This result has an antitrust implication that patent pools should not be permitted until after patentees have challenged the validity of each other’s patents if litigation costs are not too large.
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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 417.
Length: 42 p.
Date of creation: Mar 2009
Date of revision:
Note: Manuscript received December 2007; revised September 2008., Shortened Title: Patent Pools and Litigation, Patent Pools and Litigation
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Other versions of this item:
- Jay Pil Choi, 2010. "Patent Pools And Cross-Licensing In The Shadow Of Patent Litigation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(2), pages 441-460, 05.
- Jay Pil Choi, 2009. "Patent Pools and Cross-Licensing in the Shadow of Patent Litigation," Global COE Hi-Stat Discussion Paper Series gd08-044, Institute of Economic Research, Hitotsubashi University.
- NEP-ALL-2009-07-03 (All new papers)
- NEP-COM-2009-07-03 (Industrial Competition)
- NEP-IND-2009-07-03 (Industrial Organization)
- NEP-INO-2009-07-03 (Innovation)
- NEP-IPR-2009-07-03 (Intellectual Property Rights)
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