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Compulsory licensing of technology and the essential facilities doctrine

  • Aoki, Reiko
  • Small, John

We consider compulsory licensing of intellectual property as a remedy for anticompetitive practices. We identify aspects of intellectual property that could warrant a different remedy from those developed for access to physical essential facilities. Based on the analysis, we present a characterisation of optimal compulsory licensing for a simple market. We find that royalty payments offer a greater range of choices to a regulator than fixed fees. Thus, even though the marginal cost of supplying access to intellectual property is zero, some unit charging is likely to be efficient.

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File URL: http://www.sciencedirect.com/science/article/B6V8J-49W6RRD-5/2/2e3571f325b33b74664506bb4cb0fc4e
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Article provided by Elsevier in its journal Information Economics and Policy.

Volume (Year): 16 (2004)
Issue (Month): 1 (March)
Pages: 13-29

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Handle: RePEc:eee:iepoli:v:16:y:2004:i:1:p:13-29
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505549

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  1. Aoki, Reiko & Tauman, Yair, 2001. "Patent licensing with spillovers," Economics Letters, Elsevier, vol. 73(1), pages 125-130, October.
  2. Armstrong, Mark & Doyle, Chris & Vickers, John, 1996. "The Access Pricing Problem: A Synthesis," Journal of Industrial Economics, Wiley Blackwell, vol. 44(2), pages 131-50, June.
  3. Reiko Aoki & Sadao Nagaoka, 2002. "The Utility Standard and the Patentability of Basic Research," CIRJE F-Series CIRJE-F-160, CIRJE, Faculty of Economics, University of Tokyo.
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