This paper extends the work of Wang (2002) by considering a differentiated Stackelberg model, when the leader firm is an inside innovator and licenses its new technology by three options, that is, fixed-fee licensing, royalty licensing, and two-part tariff licensing. The main contributions and conclusions of this paper are threefold. First of all, this paper derives a very different result from...

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...

For an outsider innovator in a Cournot oligopoly, royalty licensing could be superior to both fixed fee and auction. The result depends on a simple fact that has been overlooked in the existing literature, namely, the number of licenses can take only integer values.  2004 Elsevier Inc. All rights reserved. JEL classification: D21; D43; D45

Imagine—you’ve just been born, and your future looks bleak. After an all-too brief infancy when you’ll be cared for and fed, you’ll be forced into child labour, cleaning a dark and crowded home and caring for your many siblings. You’ll be subsequently put on guard duty to defend your home against vicious intruders. If you survive, you’ll spend the rest of your days searching for tiny bits of fo...

Fuel and leasable minerals mined in the United States have historically been subject to federal royalties while locatable minerals have not. In recent years there have been multiple attempts to alter this policy and subject locatable minerals to federal royalties as well; most recently the preliminary 2011 Obama budget included a gross royalty on hard-rock mining on public lands. This paper ana...

This paper examines how technology transfer within U. S. multinational firms changes in response to a series of IPR reforms undertaken by sixteen countries over the 1982–1999 period. Analysis of detailed firm-level data reveals that royalty payments for technology transferred to affiliates increase at the time of reforms, as do affiliate R&D expenditures and total levels of foreign patent appli...

SYNOPSIS: The rise of intangible assets in size and contribution to corporate growth over the past quarter century was accompanied by a steep increase in the rate and scope of patenting. Consequently, many patent-rich companies, particularly in the science-based and high-tech industries, are extensively engaged in the licensing and sale of patents. We examine various valuation and disclosure as...