The continuations procedure within the U.S. patent system has been criticized for enabling firms to manipulate the … patent review process for strategic purposes. Changes during the 1990s in patent procedures affected the incentives of … by R&D-intensive, small firms that patent heavily, and are more common in chemical and biological technologies. Patents …

We argued in our paper, "Patent Hold-Up and Royalty Stacking," that the threat to obtain a permanent injunction greatly … enhances the patent holder's negotiating power, leading to royalty rates that exceed a benchmark level based on the value of … the patented technology and the strength of the patent. John Golden, in his extensive comment on our paper, claims …

It is well known in antitrust economics that competitors can rely on patent licensing with supracompetitive royalties … as a surrogate for price fixing. This paper addresses a number of alternative situations in which patent royalty … surplus. The results shed new light on the competitive impact of patent pools, which typically create widespread royalty …

We study several interconnected problems that arise under the current U.S. patent system when a patent covers one …, we show using bargaining theory that the threat to obtain a permanent injunction greatly enhances the patent holder … and the strength of the patent. Such royalty overcharges are especially great for weak patents covering a minor feature of …

When the home country introduces a patent law after the winner of the patent race is known the country's welfare may … rise only if the domestic firm wins. If the home country decides before the patent race ends, the welfare may be increased …