Licensing a technology standard

• Autores: Chun-Hui Miao
• Localización: International journal of industrial organization, ISSN 0167-7187, Vol. 47, Nº. 0, 2016, págs. 33-61
• Idioma: inglés
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• Resumen

  • Abstract I examine the optimal licensing strategy of the owner of a proprietary technology standard in a monopolistically competitive industry. The standard owner can be either an outsider inventor or a joint venture of downstream firms. I find that (1) a simple revenue royalty replicates the integrated monopoly outcome; (2) a patent pool cannot do better than adopting a non-discriminatory licensing policy that offers higher royalty rates to pool members than to nonmembers; (3) if the standard owner also sells a complementary good, then it may choose a decentralized marketplace as a commitment not to maximize licensing revenue. Implications to the use of RAND pricing in standard settings are discussed.