Profit Neutrality in Licensing: The Boundary Between Antitrust Law and Patent Law
AbstractFrom the antitrust case law that governs restrictions on patent licenses, we derive three unifying principles: just reward, profit neutrality and minimalism. The just-reward principle holds that the patentholder's profits should be earned, if at all, from the social value created by his invention. Profit neutrality holds that patent rewards should not depend on the rightholder's ability to work the patent himself. Minimalism holds that licensing contracts should not use more restrictive terms than required for neutrality. We discuss how these principles determine which patent license restrictions should and should not be acceptable from an antitrust perspective. We also compare these principles and the per se rules that follow from them to the potential benefits and drawbacks likely to be encountered under a rule of reason approach.
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Bibliographic InfoPaper provided by EconWPA in its series Law and Economics with number 0407001.
Length: 43 pages
Date of creation: 02 Jul 2004
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Other versions of this item:
- Stephen M. Maurer & Suzanne Scotchmer, 2006. "Profit Neutrality in Licensing: The Boundary Between Antitrust Law and Patent Law," American Law and Economics Review, Oxford University Press, vol. 8(3), pages 476-522.
- Stephen M. Maurer & Suzanne Scotchmer, 2004. "Profit Neutrality in Licensing: The Boundary between Antitrust Law and Patent Law," NBER Working Papers 10546, National Bureau of Economic Research, Inc.
- Stephen Maurer & Suzanne Scotchmer, . "Profit Neutrality in Licensing: The Boundary Between Antitrust Law and Patent Law," American Law & Economics Association Annual Meetings 1090, American Law & Economics Association.
- Maurer, Stephen M. & Scotchmer, Suzanne, 2004. "Profit Neutrality in Licensing: The Boundary Between Antitrust Law and Patent Law," Competition Policy Center, Working Paper Series qt6f659351, Competition Policy Center, Institute for Business and Economic Research, UC Berkeley.
- K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
- L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
- L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
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