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 …

The doctrine of "patent exhaustion" implies that the authorized sale of patented goods "exhausts" the patent rights in … model of domestic patent exhaustion that incorporates transaction costs in consumer licensing, and examines how a shift in … patent policy from absolute to presumptive exhaustion, in which the patent owner can opt- out of exhaustion via contract …