Optimal licensing of a standard
نویسنده
چکیده
This paper analyzes how an inventor should x the licensing terms to license a standard in complying with a non-discrimination requirement. Using a model incorporating imperfect competition between a nite number of users and product di¤erentiation, we compare three di¤erent regimes: xed fee (also known as royalty free), per unit royalty and two-part tari¤. We highlight the di¤erent e¤ects of each design on prices and number of varieties. We identify which one dominates with respect to the licensors pro t and total welfare. Finally we extend our model to a setting where the standard is protected by several licenses owned by non-cooperating owners. 1Dr. Yann Ménière, CORE, Université Catholique de Louvain, 34 Voie du Roman Pays, B-1348 Louvain la Neuve, Belgium, [email protected]. 2Dr. Sarah Parlane, School of Economics, University College Dublin, Bel eld, Dublin 4, Ireland. [email protected].
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