Some recent literature has concluded that patent remedies result in systematically excessive royalties because of …

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 …

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