Hybrid Licensing of Product Innovations
This paper studies the feasibility and the effects of hybrid licensing agreements involving product innovations protected by patents and trade secrets. Since incentive and efficiency considerations suggest that a typical contract should provide for a negative fixed fee and post-patent royalties at the same unit level as before patent’s expiration, we conclude that per se prohibitions of these practices are not justified on economics grounds.
|Date of creation:||Jul 2008|
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- Richard Gilbert & Carl Shapiro, 1990. "Optimal Patent Length and Breadth," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 106-112, Spring.
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