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 …

This paper analyzes how injunctions relate to patent hold-up problems. To this end, we present a simple model of … licensing negotiations between a patent holder and a downstream firm in the shadow of litigation. More specifically, we consider … the situation in which an injunction is granted as a matter of course if a patent is found valid and infringed upon in …

difference between the products. From the perspective of public policy, it is clarified that the policy on patent scope cannot … yield the first-best result in terms of the speed of innovation, and the welfare analysis shows that social welfare is … higher when the conflict is settled via cross licensing. However, the weak protection on patent rights, which is shown to …