EEP 143 Lectures 14 and 15 Final

EEP 143 Lectures 14 and 15 Final - EEP 143 Lectures 14 and...

Info iconThis preview shows pages 1–12. Sign up to view the full content.

View Full Document Right Arrow Icon
EEP 143 Lectures 14 and 15 Licensing of Technology 1. Frequency of licensing 2. Types of licenses 3. Why license? 4. Efficiency effects 5. Effects on market competition 6. Collective licensing
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Frequency of licensing In US: Intellectual Property Owner’s Association survey (Cockburn and Henderson 2003) 17.6 % of patents are licensed 1/8 of respondents say they sometimes do research in which returns are expected solely via licensing Classic example: Dolby Labs Licensing may be result of litigation settlement or mandated by outcome of litigation US licensing overseas: Much is between US parent and foreign subsidiary Tax minimization with transfer pricing
Background image of page 2
Types of licenses: Payments 1. Fixed fee (lump sum independent of output): transfers profit directly 2. Running royalty Affects price at the margin 1. % of output value 2. Fixed charge per unit output 3. Combinations of 1 and 2 above, and more complex formulae E.g. minimum fee with running royalty 3. Rarely depend directly on profits (why?)
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Types of licenses: Scope Exclusive: (careful- ambiguous term) 1. By region or territory 2. By application 3. By type of user (e.g. research cf. commercial production) 1. Non-exclusive
Background image of page 4
Types of licenses: Other terms frequently encountered 1. Reach-through royalty (on licensee’s next-stage innovation output ) Many dislike this What do you think?
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Types of licenses: Other terms frequently encountered 2. Grant-back of license on licensee’s future inventions Again, controversial What do you think?
Background image of page 6
Types of licenses: Other terms frequently encountered 3. Restrictions on sub-licensing What do you think of this?
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Open source arrangements can include: 1. Reach-through royalty (on licensee’s next- stage innovation output ) E.g. International Treaty on Plant Genetic Resources (for commercial uses not meeting certain stipulations) 2. Grant-back of license on licensee’s future inventions OS software (copyright) BIOS (for basic innovations) 3. Restrictions on sub-licensing
Background image of page 8
Why license IPRs? 1. To lower the costs and/or increase productivity of research and production 2. To attempt to increase market power in an industry, beyond the legal patent monopoly 3. To enable effective open source collaboration
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Why license IPRs? 1. To lower the costs and/or increase productivity of research and production a) Achieve more efficient allocation of production if MC increases with firm’s output b) Enable specialization of researchers and firms Cohen and Boyer were not able to efficiently exploit all applications of their gene-splicing patents specialization in software and hardware synthetic biology (Biobricks and their users) EBI: oil producer and academic biologist
Background image of page 10
Factory (Factory A) Average Revenue (Demand) Marg. Rev. MC
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 12
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/01/2008 for the course ECON 143 taught by Professor Wright during the Fall '07 term at University of California, Berkeley.

Page1 / 47

EEP 143 Lectures 14 and 15 Final - EEP 143 Lectures 14 and...

This preview shows document pages 1 - 12. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online