Intellectual Property Access Systems

This paper reviews and compares patent pools and intellectual property clearinghouses as alternative systems for increasing the efficiency of access to intellectual property. These systems improve economic efficiency in downstream research and development by economizing on search and transaction costs faced by potential licensees, and by mitigating externalities among owners of complementary intellectual property that lead to excessively high license fees. We compare the administrative and economic features of different systems, review some successful examples, and suggest directions for future economic research.