IDEAS home Printed from https://ideas.repec.org/a/kap/revind/v56y2020i4d10.1007_s11151-020-09753-3.html
   My bibliography  Save this article

Method-of-Use Patents, Appropriability, and Antitrust Policy

Author

Listed:
  • Roger D. Blair

    (University of Florida)

  • Anita N. Walsh

    (University of Florida)

Abstract

When an inventor discovers a novel, useful, and non-obvious way to use a patent or unpatented product, the Patent Office may issue a method-of-use patent. Because the method-of-use is information, it suffers from the same appropriability and excludability problems that all information bears. This paper examines vertical integration, patent licensing, and bundled pricing as business strategies for extracting the surplus. It also evaluates potential antitrust challenges to bundled pricing.

Suggested Citation

  • Roger D. Blair & Anita N. Walsh, 2020. "Method-of-Use Patents, Appropriability, and Antitrust Policy," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 56(4), pages 651-666, June.
    • Handle: RePEc:kap:revind:v:56:y:2020:i:4:d:10.1007_s11151-020-09753-3
    DOI: 10.1007/s11151-020-09753-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11151-020-09753-3
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11151-020-09753-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. DiMasi, Joseph A. & Grabowski, Henry G. & Hansen, Ronald W., 2016. "Innovation in the pharmaceutical industry: New estimates of R&D costs," Journal of Health Economics, Elsevier, vol. 47(C), pages 20-33.
    2. Phlips,Louis, 1989. "The Economics of Imperfect Information," Cambridge Books, Cambridge University Press, number 9780521309202, November.
    3. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626, National Bureau of Economic Research, Inc.
    4. Phlips,Louis, 1989. "The Economics of Imperfect Information," Cambridge Books, Cambridge University Press, number 9780521313810, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Roger D. Blair, 2020. "The Intellectual Property-Antitrust Interface," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 56(4), pages 557-561, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fabian Gaessler & Stefan Wagner, 2022. "Patents, Data Exclusivity, and the Development of New Drugs," The Review of Economics and Statistics, MIT Press, vol. 104(3), pages 571-586, May.
    2. Yin, Nina, 2023. "Pharmaceuticals, incremental innovation and market exclusivity," International Journal of Industrial Organization, Elsevier, vol. 87(C).
    3. Ian Goldin & Pantelis Koutroumpis & François Lafond & Julian Winkler, 2024. "Why Is Productivity Slowing Down?," Journal of Economic Literature, American Economic Association, vol. 62(1), pages 196-268, March.
    4. Sang-Min Park & Nicholas S. Vonortas, 2023. "Translational research: from basic research to regional biomedical entrepreneurship," Small Business Economics, Springer, vol. 60(4), pages 1761-1783, April.
    5. Tan Ngoc Vu & Duc Hong Vo & Michael McAleer, 2019. "Rent seeking for export licenses: Application to the Vietnam rice market," Documentos de Trabajo del ICAE 2019-13, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico.
    6. Sakakibara, Mariko, 1997. "Evaluating government-sponsored R&D consortia in Japan: who benefits and how?," Research Policy, Elsevier, vol. 26(4-5), pages 447-473, December.
    7. Ufuk Akcigit & Murat Celik & Daron Acemoglu, 2014. "Young, Restless and Creative: Openness to Disruption and Creative Innovations," 2014 Meeting Papers 377, Society for Economic Dynamics.
    8. Heine Klaus & Mause Karsten, 2003. "Politikberatung als informationsökonomisches Problem," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 223(4), pages 479-490, August.
    9. Gersbach, Hans & Schneider, Maik & Schneller, Olivier, 2010. "Optimal Mix of Applied and Basic Research, Distance to Frontier, and Openness," CEPR Discussion Papers 7795, C.E.P.R. Discussion Papers.
    10. Panayotis Dessyllas & Alan Hughes, 2005. "R&D and Patenting Activity and the Propensity to Acquire in High Technology Industries," Industrial Organization 0507008, University Library of Munich, Germany.
    11. Oliver Hinz & Jochen Eckert, 2010. "The Impact of Search and Recommendation Systems on Sales in Electronic Commerce," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 2(2), pages 67-77, April.
    12. Dirk Czarnitzki & Hanna Hottenrott & Susanne Thorwarth, 2011. "Industrial research versus development investment: the implications of financial constraints," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 35(3), pages 527-544.
    13. Asmund Rygh & Gabriel R. G. Benito, 2018. "Capital Structure of Foreign Direct Investments: A Transaction Cost Analysis," Management International Review, Springer, vol. 58(3), pages 389-411, June.
    14. Ali-Yrkkö, Jyrki, 2004. "Impact of Public R&D Financing on Private R&D - Does Financial Constraint Matter?," Discussion Papers 943, The Research Institute of the Finnish Economy.
    15. Paula E. Stephan, 2004. "Robert K. Merton's perspective on priority and the provision of the public good knowledge," Scientometrics, Springer;Akadémiai Kiadó, vol. 60(1), pages 81-87, May.
    16. Elie Sadigh, 1996. "Endogenous growth and neoclassical school [Croissance endogène et école néoclassique]," Working Papers hal-01526907, HAL.
    17. Oliver Falck & Anita Fichtl & Tobias Lohse & Friederike Welter & Heike Belitz & Cedric von der Hellen & Carsten Dreher & Carsten Schwäbe & Dietmar Harhoff & Monika Schnitzer & Uschi Backes-Gellner & C, 2019. "Steuerliche Forschungsförderung: Wichtiger Impuls für FuE-Aktivitäten oder zu wenig zielgerichtet?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 72(09), pages 03-25, May.
    18. Jarle Moen, 2005. "Is Mobility of Technical Personnel a Source of R&D Spillovers?," Journal of Labor Economics, University of Chicago Press, vol. 23(1), pages 81-114, January.
    19. Peter Grajzl & Stjepan Srhoj & Jaka Cepec & Barbara Mörec, 2024. "A by-product of big government: the attenuating role of public procurement for the effectiveness of grants-based entrepreneurship policy," Small Business Economics, Springer, vol. 62(3), pages 895-916, March.
    20. Tom Broekel & Matthias Brachert & Matthias Duschl & Thomas Brenner, 2015. "Joint R and D subsidies, related variety, and regional innovation," Working Papers on Innovation and Space 2015-01, Philipps University Marburg, Department of Geography.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:revind:v:56:y:2020:i:4:d:10.1007_s11151-020-09753-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.