In this paper we consider licensing of innovations in markets with differentiated products. We analyze models where firms compete in prices and are offered by an outsider innovator an innovation that increases the quality of their product. We examine the licensing policies of auction, fixed fee, linear royalty and their combination; the optimal number of licensees, the effect of the licensing p...

This paper analyses the policy implications of licensing between producers of differentiated goods. We consider and compare two-part tariff, fixed fee, royalty and collusive licensing contracts. Under the optimal licensing policy, there will be no technology transfers if the innovation size is sufficiently small and degree of product differentiation is sufficiently low. On the other hand, licen...

The theoretical literature on the cumulative innovation process has emphasized the role of ex-ante licensing namely, licensing agreements negotiated before the follow-on innovator has sunk its R&D investment in mitigating the risk of hold-up of future innovations. In this paper, we consider a patent-holder and a follow-on innovator bargaining over the licensing terms in a context where the form...

Licensing models and license management systems are going through major changes because the traditional shrink-wrapped software way of licensing does not meet the needs of the modern software market. In particular the emergence of new platforms, such as mobile computing and the assumption by software vendors of clients possessing network connected software, will revolutionize how software is li...

Unlike some European countries, there have been few motor scooters and mopeds on Australian roads and licensing and training of these riders has received little attention. However, recent increases in the sales of scooters (many of which are officially mopeds) have stimulated interest in how these vehicles can be best managed in Australia. This paper reviews local and international approaches t...

We use a duopoly to show how the possibility of licensing ex post R&D affects the decision on R&D organization. We show that whether licensing ex post R&D affects the incentive for doing cooperative R&D depends on the nature of cooperative R&D. If the firms do cooperative R&D to avoid duplication in R&D process then the possibility of licensing ex post R&D may influence the decision on R&D orga...

Recent months have seen intensified global calls for an intellectual property waiver of COVID-19 related vaccines, treatments and products. Where one side the debate elevates Intellectual Property Rights as on obstacle to affordable expeditious access vaccines treatments, other points existing TRIPS flexibilities such compulsory licensing, necessity future innovation well factors manufacturing ...

The authors present two classroom experiments on technology licensing. first experiment introduces the concept of royalty stacking. Students learn that noncooperative pricing royalties for complementary intellectual property rights leads to a double-marginalization effect. Cooperation solves problem and is welfare-improving. second students cross-licensing. It shows reciprocal payments dampen c...