Private Agreements for Coordinating Patent Rights: The Case of Patent Pools
AbstractInventors and users of technology often enter into cooperative agreements for sharing their intellectual property in order to implement a standard or to avoid costly litigation. Over the past two decades, U.S. antitrust authorities have viewed pooling arrangements that integrate complementary, valid and essential patents as having procompetitive benefits in reducing prices, transactions costs, and the incidence of legal suits. Since patent pools are cooperative agreements, they also have the potential of suppressing competition if, for example, they harbor weak or invalid patents, dampen incentives to conduct research on innovations that compete with the pooled patents, foreclose competition from downstream product or upstream input markets, or raise prices on goods that compete with the pooled patents. In synthesizing the ideas advanced in the economic literature, this paper explores whether these antitrust concerns apply to pools with complementary patents and, if they do, the implications for competition policy to constrain them. Special attention is given to the application of the U.S. Department of JusticeâFederal Trade Commission Guidelines for the Licensing of Intellectual Property (1995) and its companion Antitrust Enforcement and Intellectual Property Rights: Promoting Innovation and Competition (2007) to recent patent pool cases.
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Bibliographic InfoPaper provided by Institute of Public Policy and Public Choice - POLIS in its series IEL Working Papers with number 5.
Length: 32 pages
Date of creation: Jun 2011
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patents; patent pools; intellectual property;
Other versions of this item:
- 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.
- Gallini, Nancy, 2010. "Private Agreements for Coordinating Patent Rights: The Case of Patent Pools," Economics working papers nancy_gallini-2010-34, Vancouver School of Economics, revised 17 Nov 2010.
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-07-02 (All new papers)
- NEP-COM-2011-07-02 (Industrial Competition)
- NEP-INO-2011-07-02 (Innovation)
- NEP-IPR-2011-07-02 (Intellectual Property Rights)
- NEP-TID-2011-07-02 (Technology & Industrial Dynamics)
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