Establishes a framework within which to analyze the profit distribution of innovations and determines the reasons why imitators may outperform innovators. First, the three fundamental building blocks necessary to explain the distribution of innovations are discussed: the appropriability regime,...

We discuss various economic aspects of different types (or taxa) of “patent thickets” identified in a companion article co-authored by one of us. We analogize patent thickets to “tangible input thickets” (in which manufacturers of complex products need a large number of different...

In order to begin developing a base of paying licensees in the context of widespread infringement, IP owners must sometimes significantly discount licensing terms in their early negotiations – with a view that successful licenses, even at a relatively low price, will deliver value by...