EC370 exam
example of patent pool
the Wright company and airplanes
tragedy of the anti commons
under-utilization of a private resource
Blue-Sky Prizes
"l'll know it when I see it." "The sky is limit." - Award novelty - Tailored ex post to the value of the innovation -Promote com
licensing agreement
A formal agreement giving a person or organization permission to use or do something.
Joint ownership of the Tools
A holder company for the tools themselves one company buying up all the tolls developing.
Ex post licensing agreement
Agreeing to license a technology after an investment is made the innovation using the technology.
Ex ante licensing agreement
Agreeing to license a technology before an investment is made using the technology.
Patent Pools
Agreement between patent owners to jointly cross-license their patents relating to a particular technology.
What happens with no ex ante license when the follow-on innovation is made?
Basic innovator can hold up the follow-on innovator we call this the hold up problem.
Blocking Rights
Cases where one (or several) patent holders can keep particular product or technology from being used.
Ex post merger
Combining IP ownership after investment of patent pool.
Compulsory Licensing
Compulsory licensing is when a licensing agreement is required. The user of the IP does not need to seek permission directly from the right-holder. instead, the user pays a fee and is granted access.
Ex ante merger
Conduct R&d together with Joint ownership over the IP.
Transaction cost
Cost associated with exchange good or services and incurred in overcoming market imperfections.
example of patent pool
DVD6C Licensing Group that covers a technology on DVD discs, players, drives, recorders, and decoders.
C2
Development cost
How are the research tools sold?
Each of the research tools are required and there are no substitutes.
Tragedy of the Anticommons
Each right holder, vying for the value of the application, charges prices that are higher than optimal, leading to under investment in the application.
Dynamic efficiency
Efficient allocation of new products across time.
F/RAND licensing
Fair/reasonable and non-discriminatory licensing. Fair means that conditions of the license must satisfy anti competition policy. Reasonable means that the licensing rates must not be exorbitant. Non-discriminatory means the terms and rates of the agreement must be applied equally to all types of parties.
In The context of innovation
If the follow-on Innovation never occurs, the basic innovator earns profits of never occurs, the basic innovator earns profit of πxT-c1.
Targeted Prizes
Reward solutions to needs identified ex ante -Problems are identified ex ante - Sponsors of the prize determine required performance standards. -Prize may still tailored to value
C1
The cost of the first innovation
Static Efficiency
The efficiency of market, as measured by the total gains from trade, at a given point in time.
Asymmetric Information
The follow-on innovator want to convince the basic innovator that, without a balanced ex ante license, there will be no follow on innovation and a blocking patent will be used to prevent anyone else from producing the follow-on.
Y
The incremental value added to x.
X
The per- year value to end users
defensive termination
acts as a mutually assured destruction. Two companies agreeing to cross-licensing decide that if one party terminates the license, the other can.
tragedy of anti commons
each independent owner, vying for the value of an application, charges prices that are higher than optimal, leading to underinvestment in the application
rule of reason
legal principle that the allowance of a potentially anticompetitive act depends on the context, intentions, and expected outcomes
Defensive patent licensing
like a open source software. Parties using the defensive patent license must license all patents under it. Those patents are then offered freely to any party also using the defensive patent licensing agreement.
Manufacturer's Aircraft Association
patent pool that licensed patents regarding the manufacturing of airplanes.
example of patent pool
sewing machine combination
cross licensing
when two or more right-holders agree to grant each other a license to utilize all the protected technologies. Patent pools involve cross-licensing.