Cross-Licensing and Competition
We study bilateral cross-licensing agreements among N(> 2) firms that engage in competition after the licensing phase. It is shown that the most collusive cross-licensing royalty, i.e. the one that allows the industry to achieve the monopoly profit, is sustainable as the outcome of bilaterally efficient agreements. When the terms of the agreements are not observable to third parties, the monopoly royalty is the unique symmetric bilaterally efficient royalty. However, when the terms of the agreements are public, the most competitive royalty (i.e. zero) can also be bilaterally efficient. Policy implications regarding the antitrust treatment of cross-licensing agreements are derived from these results.
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.:
- Matthew O. Jackson & Asher Wolinsky, 1994.
"A Strategic Model of Social and Economic Networks,"
1098, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Choi, Jay Pil, 2009.
"Patent Pools and Cross-Licensing in the Shadow of Patent Litigation,"
PIE/CIS Discussion Paper
417, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
- Jay Pil Choi, 2010. "Patent Pools And Cross-Licensing In The Shadow Of Patent Litigation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(2), pages 441-460, 05.
- Jay Pil Choi, 2009. "Patent Pools and Cross-Licensing in the Shadow of Patent Litigation," Global COE Hi-Stat Discussion Paper Series gd08-044, Institute of Economic Research, Hitotsubashi University.
- von Graevenitz, Georg & Wagner, Stefan & Harhoff, Dietmar, 2011.
"How to measure patent thickets--A novel approach,"
Elsevier, vol. 111(1), pages 6-9, April.
- Bloch, Francis & Jackson, Matthew, 2004.
"The Formation of Networks with Transfers among Players,"
1194, California Institute of Technology, Division of the Humanities and Social Sciences.
- Bloch, Francis & Jackson, Matthew O., 2007. "The formation of networks with transfers among players," Journal of Economic Theory, Elsevier, vol. 133(1), pages 83-110, March.
- Matthew O. Jackson & Francis Bloch, 2004. "The Formation of Networks with Transfers among Players," Working Papers 2004.80, Fondazione Eni Enrico Mattei.
- Rabah Amir & David Encaoua & Yassine Lefouili, 2014.
"Optimal licensing of uncertain patents in the shadow of litigation,"
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers)
- Amir, Rabah & Encaoua, David & Lefouili, Yassine, 2014. "Optimal licensing of uncertain patents in the shadow of litigation," Games and Economic Behavior, Elsevier, vol. 88(C), pages 320-338.
- Rabah Amir & David Encaoua & Yassine Lefouili, 2013. "Optimal Licensing of Uncertain Patents in the Shadow of Litigation," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00847955, HAL.
- Priest, George L, 1977. "Cartels and Patent License Arrangements," Journal of Law and Economics, University of Chicago Press, vol. 20(2), pages 309-77, October.
- Siebert, Ralph Bernd & Graevenitz, Georg von, 2010. "Licensing in the Patent Thicket - Timing and Benefits," MPRA Paper 24007, University Library of Munich, Germany.
- Harhoff, Dietmar & von Graevenitz, Georg & Wagner, Stefan, 2008.
"Incidence and Growth of Patent Thickets - The Impact of Technological Opportunities and Complexity,"
CEPR Discussion Papers
6900, C.E.P.R. Discussion Papers.
- Georg Graevenitz & Stefan Wagner & Dietmar Harhoff, 2013. "Incidence and Growth of Patent Thickets: The Impact of Technological Opportunities and Complexity," Journal of Industrial Economics, Wiley Blackwell, vol. 61(3), pages 521-563, 09.
- Graevenitz, Georg von & Wagner, Stefan & Harhoff, Dietmar, 2011. "Incidence and Growth of Patent Thickets - The Impact of Technological Opportunities and Complexity," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 356, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Hall, Bronwyn H & Ziedonis, Rosemarie Ham, 2001. "The Patent Paradox Revisited: An Empirical Study of Patenting in the U.S. Semiconductor Industry, 1979-1995," RAND Journal of Economics, The RAND Corporation, vol. 32(1), pages 101-28, Spring.
- William Novshek, 1985.
"On the Existence of Cournot Equilibrium,"
Review of Economic Studies,
Oxford University Press, vol. 52(1), pages 85-98.
- Maria Jose Abud & Carsten Fink & Bronwyn Hall & Christian Helmers, 2013. "The use of intellectual property in Chile," WIPO Economic Research Working Papers 11, World Intellectual Property Organization - Economics and Statistics Division.
- Mukesh Eswaran, 1994. "Cross-Licensing of Competing Patents as a Facilitating Device," Canadian Journal of Economics, Canadian Economics Association, vol. 27(3), pages 689-708, August.
When requesting a correction, please mention this item's handle: RePEc:net:wpaper:1311. 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: (Nicholas Economides)
If references are entirely missing, you can add them using this form.