MERGING TO LICENSE: INTERNAL VS. EXTERNAL PATENTEE

In this paper, we endogenize the decision of a research laboratory that owns a patented process innovation on whether to remain independent as an external patentee or to merge with a manufacturing firm, becoming an internal to the industry patentee. We show that a merger is profitable only for the case of small innovations whereas only large innovations make it welfare improving. As a consequence, the antitrust authority should forbid all (profitable) mergers.

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Year of publication:	2003-05
Authors:	Faulí-Oller, Ramón ; Sandonís, Joel
Institutions:	Instituto Valenciano de Investigaciones Económicas (IVIE)
Subject:	Patent licensing \| two-part tariff contracts \| external vs. internal patentee

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Extent:	application/pdf
Series:	Working Papers. Serie AD.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Published by Ivie 22 pages
Classification:	D43 - Oligopoly and Other Forms of Market Imperfection ; D45 - Rationing; Licensing ; L41 - Monopolization; Horizontal Anticompetitive Practices
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005515935