Do Patent Holdup and Royalty Stacking Lead to Systematically Excessive Royalties?
نویسندگان
چکیده
منابع مشابه
Do Patent Holdup and Royalty Stacking Lead to Systematically Excessive Royalties?
Some recent literature has concluded that patent remedies result in systematically excessive royalties because of holdup and stacking problems. This article shows that this literature is mistaken. The royalty rates predicted by the holdup models are often (plausibly most of the time) below the true optimal rate. Further, those predicted royalty rates are overstated because of incorrect assumpti...
متن کاملPatent Holdup and Royalty Stacking
We study several interconnected problems that arise under the current U.S. patent system when a patent covers one component or feature of a complex product. This situation is common in the information technology sector of the economy. Our analysis applies to cases involving reasonable royalties but not lost profits. First, we show using bargaining theory that the threat to obtain a permanent in...
متن کاملReply Patent Holdup and Royalty Stacking
We argued in our article, Patent Holdup and Royalty Stacking, that the threat to obtain a permanent injunction can greatly enhance a patent holder’s negotiating power, leading to royalty rates that exceed a benchmark level based on the value of the patented technology and the strength of the patent. Our analysis showed that such problems are especially likely to arise for patents covering a min...
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This paper studies royalty negotiations between a patent holder and a downstream firm selling a product which is more valuable if it includes a feature covered by the patent. Royalties are negotiated in the shadow of patent litigation, which will determine whether or not the patent is valid and infringed. If the two firms negotiate after the downstream firm has already designed its product to i...
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One of the more curious features of patent law is that patents can be challenged by anyone affected by them, at any time. This challenge right allows potential defendants to file a declaratory relief lawsuit in their local federal district court, seeking a judgment that a patent is invalid or noninfringed. To avoid this home-court advantage, patent owners may file a patent infringement lawsuit ...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2008
ISSN: 1556-5068
DOI: 10.2139/ssrn.1139133