Third-Party Clearinghouses and Intellectual Property Licensing

We analyse the basic economic issues relating to third-party intellectual property clearinghouses that act as licensing intermediaries. We identify economic functions of clearinghouses and discuss ways that they can improve efficiency in licensing through centralisation and independence. We then examine clearinghouse strategy and policy with regard to establishing new clearinghouses, clearinghouse pricing and competition between clearinghouses. We also consider effects on incentives to invest in R&D and anti-trust issues