Decentralized of licensing of complementary patents: comparing royalty, fixed fee and two part tariff
This paper analyzes how an inventor should fix the licensing terms to license a standard in complying with a non-discrimination requirement. Using a model incorporating imperfect competition between a finite number of users and product differentiation, we compare three different regimes: fixed fee (also known as royalty free), per unit royalty and two-part tariff. We highlight the different effects of each design on prices and number of varieties. We identify which one dominates with respect to the licensor's profit and total welfare. Finally we extend our model to a setting where the standard is protected by several licenses owned by non-cooperating owners.
|Date of creation:||Jul 2008|
|Note:||June 13, 2008|
|Contact details of provider:|| Postal: 2-1 Naka, Kunitachi City, Tokyo 186-8603|
Web page: http://cis.ier.hit-u.ac.jp/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Francisco Caballero-Sanz & Rafael Moner-Colonques & José J. Sempere-Monerris, 2002.
"Optimal Licensing in a Spatial Model,"
Annals of Economics and Statistics,
GENES, issue 66, pages 257-279.
- CABALLERO-SANZ, Francisco & MONER-COLONQUES, Rafael & SEMPERE-MONERRIS, José J., "undated". "Optimal licensing in a spatial model," CORE Discussion Papers RP 1588, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- CABALLERO-SANZ, Francisco & MONER-COLONQUES, Rafael & SEMPERE-MONERRIS, J.J., 1994. "Optimal Licensing in a Spatial Model," CORE Discussion Papers 1994031, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- repec:adr:anecst:y:2002:i:66:p:11 is not listed on IDEAS Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:hit:piecis:383. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Digital Resources Section, Hitotsubashi University Library)
If references are entirely missing, you can add them using this form.