Screening for Good Patent Pools through Price Caps on Individual Licenses
Patent pools reduce prices when selling complementary inputs to technologies, but can also effectively cartelize markets when involving substitutes. Independent licensing, by reintroducing competition, ensures that only good pools form when there are two patent holders involved. For larger pools, independent licensing needs to be complemented by other policy tools. We propose to constrain the royalties for the patents individually licensed outside the pool with price caps replicating the pool's sharing rule. This information-free screening device works with asymmetries, even when licensors try to stabilize pools by readjusting the sharing rule in a way that may not reflect contributions.
(This abstract was borrowed from another version of this item.)
|Date of creation:||Mar 2014|
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- Josh Lerner & Marcin Strojwas & Jean Tirole, 2007.
"The design of patent pools: the determinants of licensing rules,"
RAND Journal of Economics,
RAND Corporation, vol. 38(3), pages 610-625, 09.
- Lerner, Josh & Strojwas, Marcin & Tirole, Jean, 2005. "The Design of Patent Pools: The Determinants of Licensing Rules," IDEI Working Papers 187, Institut d'Économie Industrielle (IDEI), Toulouse.
- Rey, Patrick & Tirole, Jean, 2013. "Cooperation vs. Collusion: How Essentiality Shapes Co-opetition," IDEI Working Papers 801, Institut d'Économie Industrielle (IDEI), Toulouse. Full references (including those not matched with items on IDEAS)