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The Shapley value as a guide to FRAND licensing agreements

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  • DEHEZ, Pierre
  • POUKENS, Sophie

Abstract

We consider the problem of specifying Fair, Reasonable And Non-Discriminatory agreements faced by standard-setting organizations. Along with Layne-Farrar, Padilla and Schmalensee (2007), we model the problem as a cooperative game with transferable utility, allowing for patents to be weak in the sense that they have substitutes. Assuming that a value has been assigned to weak patents, we obtain a formula for the Shapley value that gives an insight into what FRAND agreements should look like.
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Suggested Citation

  • DEHEZ, Pierre & POUKENS, Sophie, 2014. "The Shapley value as a guide to FRAND licensing agreements," LIDAM Reprints CORE 2645, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:2645
    Note: In : Review of Law Economics, 10(3), 265-284, 2014
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    References listed on IDEAS

    as
    1. Fleurbaey,Marc & Maniquet,François, 2011. "A Theory of Fairness and Social Welfare," Cambridge Books, Cambridge University Press, number 9780521715348, September.
    2. Morton I. Kamien & Yair Tauman, 1986. "Fees Versus Royalties and the Private Value of a Patent," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 101(3), pages 471-491.
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    5. repec:cor:louvrp:-2481 is not listed on IDEAS
    6. Pierre Dehez & Daniela Tellone, 2013. "Data Games: Sharing Public Goods with Exclusion," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 15(4), pages 654-673, August.
    7. CARPANTIER, Jean-François & SAPATA, Christelle, 2012. "Unfair inequalities in France: A regional comparison," LIDAM Discussion Papers CORE 2012038, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    11. Dehez Pierre & Poukens Sophie, 2014. "The Shapley Value as a Guide to FRAND Licensing Agreements," Review of Law & Economics, De Gruyter, vol. 10(3), pages 265-284, November.
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    Cited by:

    1. Dehez, Pierre, 2021. "1-convex transferable utility games, a reappraisal," LIDAM Discussion Papers CORE 2021016, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. Wipusanawan, Chayanin, 2023. "Standard-essential patents, innovation, and competition," Other publications TiSEM 292e319a-9e6a-4465-8f8f-7, Tilburg University, School of Economics and Management.
    3. Jens Leth Hougaard & Chiu Yu Ko & Xuyao Zhang, 2017. "A Welfare Economic Interpretation of FRAND," IFRO Working Paper 2017/04, University of Copenhagen, Department of Food and Resource Economics.
    4. Dehez Pierre & Poukens Sophie, 2014. "The Shapley Value as a Guide to FRAND Licensing Agreements," Review of Law & Economics, De Gruyter, vol. 10(3), pages 265-284, November.
    5. Hougaard, Jens Leth & Ko, Chiu Yu & Zhang, Xuyao, 2023. "A conceptual model for FRAND royalty setting," Mathematical Social Sciences, Elsevier, vol. 123(C), pages 167-176.
    6. Dehez, Pierre & Mêgnigbêto, Eustache, 2024. "Measuring the extent of synergies among innovation actors and their contributions: the Helix as a cooperative game," LIDAM Discussion Papers CORE 2024006, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

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