The combination of existing technologies is necessary for innovation. An important aspect of technology exchange between firms is that it generates both business creation and, possibly, business stealing. These countervailing effects generate potentially misaligned interests between technology...

Patents and the market for innovative control -- Patents vs prizes -- Patents and the business revolution -- Patent infringement and reasonable royalty damages -- Patent licensing : intellectual contract and intellectual law.

The paper develops a comprehensive framework demonstrating how patents provide the foundation of the market for inventions. Patents support the establishment of the market in several key ways. First, patents provide a system of intellectual property (IP) rights that increases transaction...

Inventors and producers bargain over royalties to license multiple patented inventions. In the first stage of the bargaining game, inventors offer licenses to producers and producers demand licenses. In the second stage of the game, inventors and producers engage in bilateral bargaining over...