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Hybrid licensing of product innovations

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Author Info
Ottoz Elisabetta () (University of Turin)
Cugno Franco () (University of Turin)

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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.de.unito.it/web/member/segreteria/WP/2008/10_WP_Ottoz_Cugno.pdf
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Paper provided by University of Turin in its series Department of Economics Working Papers with number 200810.

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

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This paper has been announced in the following NEP Reports: References listed on IDEAS
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  1. Gilbert, R. & Shapiro, C., 1988. "Optimal Patent Length And Breadth," Papers 28, Princeton, Woodrow Wilson School - Discussion Paper.
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  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. [Downloadable!] (restricted)
  3. Cugno Franco & Ottoz Elisabetta, 2007. "Patent-secret mix in complex product firms," Department of Economics Working Papers 200707, University of Turin. [Downloadable!]
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This page was last updated on 2009-12-2.


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