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The Shapley value as a guide to FRAND licensing agreements

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  • Pierre Dehez
  • Sophie Poukens

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.

Suggested Citation

  • Pierre Dehez & Sophie Poukens, 2013. "The Shapley value as a guide to FRAND licensing agreements," Working Papers of BETA 2013-03, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    • Handle: RePEc:ulp:sbbeta:2013-03
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    References listed on IDEAS

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    1. Fleurbaey,Marc & Maniquet,François, 2011. "A Theory of Fairness and Social Welfare," Cambridge Books, Cambridge University Press, number 9780521715348, May.
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    4. Carl Shapiro, 2001. "Navigating the Patent Thicket: Cross Licenses, Patent Pools, and Standard Setting," NBER Chapters, in: Innovation Policy and the Economy, Volume 1, pages 119-150, National Bureau of Economic Research, Inc.
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    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.
    12. Patrick Llerena & Valentine Millot, 2013. "Are Trade Marks and Patents Complementary or Substitute Protections for Innovation," Working Papers of BETA 2013-01, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
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    1. 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.
    2. Pierre Dehez & Eustache Mêgnigbêto, 2024. "Measuring the extent of synergies among innovation actors and their contributions: the Helix as a cooperative game," Journal of Information Economics, Anser Press, vol. 2(2), pages 46-56, June.
    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, 2021. "1-convex transferable utility games, a reappraisal," LIDAM Discussion Papers CORE 2021016, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    5. Wipusanawan, Chayanin, 2023. "Standard-essential patents, innovation, and competition," Other publications TiSEM 292e319a-9e6a-4465-8f8f-7, Tilburg University, School of Economics and Management.
    6. 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.

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