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Hybrid Licensing of Product Innovations

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  • Ottoz Elisabetta

    ()

  • Cugno Franco

    ()
    (University of Turin)

Abstract

This paper studies the feasibility and the effects of hybrid licensing agreements involving product innovations protected by patents and trade secrets. Since incentive and efficiency considerations suggest that a typical contract should provide for a negative fixed fee and post-patent royalties at the same unit level as before patent’s expiration, we conclude that per se prohibitions of these practices are not justified on economics grounds.

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File URL: http://www.unito.it/unitoWAR/ShowBinary/FSRepo/D031/Allegati/WP2008Dip/10_WP_Ottoz_Cugno.pdf
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Bibliographic Info

Paper provided by University of Turin in its series Department of Economics and Statistics Cognetti de Martiis. Working Papers with number 200810.

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Length: 11 pages
Date of creation: Jul 2008
Date of revision:
Handle: RePEc:uto:dipeco:200810

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  1. Gilbert, R. & Shapiro, C., 1988. "Optimal Patent Length And Breadth," Papers 28, Princeton, Woodrow Wilson School - Discussion Paper.
  2. Maurer, Stephen M & Scotchmer, Suzanne, 2002. "The Independent Invention Defence in Intellectual Property," Economica, London School of Economics and Political Science, vol. 69(276), pages 535-47, November.
  3. Nancy T. Gallini, 1992. "Patent Policy and Costly Imitation," RAND Journal of Economics, The RAND Corporation, vol. 23(1), pages 52-63, Spring.
  4. Stephen Law, 2004. "Inter-temporal Tie-ins: A Case for Tying Intellectual Property Through Licensing," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 11(1), pages 3-26.
  5. Ottoz Elisabetta & Cugno Franco, 2007. "Patent-Secret Mix in Complex Product Firms," Department of Economics and Statistics Cognetti de Martiis. Working Papers 200707, University of Turin.
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