This paper analyzes patent pools and their effects on innovation incentives. It is shown that the pro …-competitive effects of patent pools for complementary patents naturally extend for dynamic innovation incentives. However, this simple … case, the licensing fees reflect the strength of patents. Patent pools of complementary patents can be used to discourage …

difference between the products. From the perspective of public policy, it is clarified that the policy on patent scope cannot … higher when the conflict is settled via cross licensing. However, the weak protection on patent rights, which is shown to …

deter entry with the threat of patent litigation. We show that a positive cross-licensing royalty rate, which would …