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In: IESE Business School Working Paper No. 674
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Working paper
In: IESE Business School Working Paper No. 697
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Working paper
In: The Rand journal of economics, Band 35, Heft 1, S. 184
ISSN: 1756-2171
In: Journal of economic behavior & organization, Band 222, S. 427-445
ISSN: 1879-1751, 0167-2681
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Working paper
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Working paper
In: CESifo Working Paper Series No. 7151
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In: International Economic Review, Band 59, Heft 4, S. 2075-2106
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In: The Rand journal of economics, Band 46, Heft 3, S. 499-523
ISSN: 1756-2171
This article analyzes patent pools and their effects on litigation incentives, overall royalty rates, and social welfare when patent rights are probabilistic and can be invalidated in court. With probabilistic patents, the license fees reflect the strength of the patents. We show that patent pools of complementary patents can be used to discourage infringement by depriving potential licensees of the ability to selectively challenge patents and making them committed to a proposition of all‐or‐nothing in patent litigation. If patents are sufficiently weak, patent pools with complementary patents reduce social welfare as they charge higher licensing fees and chill subsequent innovation incentives.
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In: CESifo Working Paper Series No. 4429
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