Classroom experiments on technology licensing: Royalty stacking, cross-licensing, and patent pools

The authors present two classroom experiments on technology licensing. first experiment introduces the concept of royalty stacking. Students learn that noncooperative pricing royalties for complementary intellectual property rights leads to a double-marginalization effect. Cooperation solves problem and is welfare-improving. second students cross-licensing. It shows reciprocal payments dampen competition. stimulate discussions licensing, rights, different structures, patent pools, standards. experimental procedures suggest routes discussion.