Book contents
- On the Shoulders of Giants
- Econometric Society Monographs
- On the Shoulders of Giants
- Copyright page
- Dedication
- Contents
- Contributors
- Preface
- Acknowledgments
- Chapter 1 Introduction
- Part I Threads in the Tapestry
- Part II Innovation Theory (I): Cumulative Innovation
- Part III Innovation Theory (II): Law and Economics
- Chapter 19 The Long Journey: From Models to Legal Doctrine
- Chapter 20 M. Schankerman and S. Scotchmer, “Damages and Injunctions in Protecting Intellectual Property” (1999)
- Chapter 21 Pamela Samuelson and Suzanne Scotchmer, “The Law and Economics of Reverse Engineering” (2002)
- Chapter 22 S. M. Maurer and S. Scotchmer, “Profit Neutrality in Licensing: The Boundary Between Antitrust Law and Patent Law” (2006)
- Part IV Club Theory
- Part V Evolutionary Game Theory
- Part VI Public Policy
- Part VII Living Legacy
- Part VIII Epilog
- Bibliography
- Index
- References
Chapter 22 - S. M. Maurer and S. Scotchmer, “Profit Neutrality in Licensing: The Boundary Between Antitrust Law and Patent Law” (2006)
from Part III - Innovation Theory (II): Law and Economics
Published online by Cambridge University Press: 12 October 2017
Edited by
Book contents
- On the Shoulders of Giants
- Econometric Society Monographs
- On the Shoulders of Giants
- Copyright page
- Dedication
- Contents
- Contributors
- Preface
- Acknowledgments
- Chapter 1 Introduction
- Part I Threads in the Tapestry
- Part II Innovation Theory (I): Cumulative Innovation
- Part III Innovation Theory (II): Law and Economics
- Chapter 19 The Long Journey: From Models to Legal Doctrine
- Chapter 20 M. Schankerman and S. Scotchmer, “Damages and Injunctions in Protecting Intellectual Property” (1999)
- Chapter 21 Pamela Samuelson and Suzanne Scotchmer, “The Law and Economics of Reverse Engineering” (2002)
- Chapter 22 S. M. Maurer and S. Scotchmer, “Profit Neutrality in Licensing: The Boundary Between Antitrust Law and Patent Law” (2006)
- Part IV Club Theory
- Part V Evolutionary Game Theory
- Part VI Public Policy
- Part VII Living Legacy
- Part VIII Epilog
- Bibliography
- Index
- References
Summary
Abstract
We address the patent/antitrust conflict in licensing and develop three guiding principles for deciding acceptable terms of license. Profit neutrality holds that patent rewards should not depend on the rightholder’s ability to work the patent himself. Derived reward holds that the patentholder’s profits should be earned, if at all, from the social value created by the invention. Minimalism holds that licenses should not be more restrictive than necessary to achieve neutrality. We argue that these principles are economically sound and rationalize some key decisions of the twentieth century such as General Electric and Line Material.
- Type
- Chapter
- Information
- On the Shoulders of GiantsColleagues Remember Suzanne Scotchmer's Contributions to Economics, pp. 196 - 229Publisher: Cambridge University PressPrint publication year: 2017
References
References
Adelman, Martin J., and Juenger, Friedrich K.. 1975. “Patent-Antitrust: Patent Dynamics and Field-of-Use Licensing,” 50 New York University Law Review 273–308.Google Scholar
American Bar Association Section of Antitrust Law. 2002. The Federal Antitrust Guidelines for the Licensing of Intellectual Property: Origins and Applications, 2nd ed. Chicago: ABA Publishing.Google Scholar
Areeda, Phillip E., and Hovenkamp, Herbert. 2003. Antitrust Law: An Analysis of Antitrust Principles and Their Application. New York: Aspen Publishers.Google Scholar
Baxter, William. 1966. “Legal Restrictions on Exploitation of the Patent Monopoly: An Economic Analysis,” 76 Yale Law Journal 267–370.Google Scholar
Bork, Robert H. 1965. “The Rule of Reason and the Per Se Concept: Price Fixing and Market Division,” 74 Yale Law Journal 775–847.CrossRefGoogle Scholar
Bork, Robert H.. 1978. The Antitrust Paradox: A Policy at War With Itself. New York: Basic Books.Google Scholar
Bowman, William S. 1973. Patent and Antitrust Law: A Legal and Economic Appraisal. Chicago: University of Chicago Press.Google Scholar
Chisum, Donald S. 2003. Chisum on Patents: A Treatise on the Law of Patentability, Validity and Infringement. Newark, NJ, and San Francisco: Matthew Bender & Co.Google Scholar
Furth, Helmut F. 1958. “Price-Restrictive Patent Licenses Under the Sherman Act,” 71 Harvard Law Review 814–842.Google Scholar
Gifford, Daniel J. 2002. “The Antitrust/Intellectual Property Interface: An Emerging Solution to an Intractable Problem,” 31 Hofstra Law Review 398–418.Google Scholar
Hovenkamp, Herbert, Janis, Mark D., and Lemley, Mark A.. 2004. IP and Antitrust: An Analysis of Antitrust Principles Applied to Intellectual Property Law. New York: Aspen Publishers.Google Scholar
Kaplow, Lewis. 1984. “The Patent-Antitrust Intersection: A Reappraisal,” 97 Harvard Law Review 1813–912.CrossRefGoogle Scholar
Landes, William M., and Posner, Richard A.. 2003. The Economic Structure of Intellectual Property Law. Cambridge, MA: Belknap Press of Harvard University Press.Google Scholar
O’Donoghue, Ted, Scotchmer, Suzanne, and Thisse, Jacques. 1998. “Patent Breadth, Patent Life and the Pace of Technological Progress,” 7 Journal of Economics and Management Strategy 1–32.Google Scholar
Patterson, Mark R. 2002. “When is Property Intellectual: The Leveraging Problem,” 73 Southern California Law Review 1133–60.Google Scholar
Rey, Patrick, and Tirole, Jean. 2006. “A Primer on Foreclosure.” In Armstrong, M. and Porter, R., eds., Handbook of Industrial Organization III. Amsterdam: Elsevier (forthcoming).Google Scholar
Schlicher, John W. 2000. Patent Law: Legal and Economic Principles. Eagan, MN: Thomson/West.Google Scholar
Scotchmer, Suzanne. 1991. “Standing on the Shoulders of Giants: Cumulative Research and the Patent Law,” 5 Journal of Economic Perspectives 29–41.Google Scholar
Shapiro, Carl. 2003. “Antitrust Limits to Patent Settlements,” 34 RAND Journal of Economics 391–411.Google Scholar
Weinschel, Alan J. 2000. Antitrust-Intellectual Property Handbook. Little Falls, NJ: Glasser LegalWorks.Google Scholar
Arthur J. Schmitt Foundation v. Stockham Valves and Fittings, Inc., 292 F. Supp. 893 (N.D. Ala. 1966).Google Scholar
California Dental Assn. v. FTC, 526 U.S. 756 (1999).Google Scholar
Carborundum Co. v. Molten Metal Equip. Innovations, Inc., 72 F.3d 872 (Fed. Cir. 1995).Google Scholar
Ethyl Gasoline Corp. v. U.S., 309 U.S. 436 (1940).Google Scholar
General Talking Pictures Corp. v. Western Electric Co., 305 U.S. 124 (1938).Google Scholar
Hensley Equip. Co., Inc. v. Esco Corp., 383 F.2d 252 (5th Cir. 1967).Google Scholar
Interstate Circuit v. U.S., 306 U.S. 208 (1939).Google Scholar
Morton Salt v. G.S. Suppiger Co., 314 U.S. 488 (1942).Google Scholar
Neal Report (White House Task Force Report on Antitrust Policy), Antitrust & Trade Regulation Reports 411 (Pt. 2) (1969).Google Scholar
Royal Industries v. St. Regis Paper Co., 420 F.2d 449 (9th Cir. 1969).Google Scholar
Shapiro v. General Motors Corp., 472 F. Supp. 636 (D. Md. 1979).Google Scholar
Statute of Monopolies, 21 Jam. I, c.3 (1623)(Eng.).Google Scholar
U.S. v. E.I. du Pont De Nemours & Co., 118 F. Supp. 41 (D. Del. 1953).Google Scholar
U.S. v. General Electric Co., 272 U.S. 476 (1926).Google Scholar
U.S. v. Line Material Co., 333 US 287 (1948).Google Scholar
Adelman, Martin J., and Juenger, Friedrich K.. 1975. “Patent-Antitrust: Patent Dynamics and Field-of-Use Licensing,” 50 New York University Law Review 273–308.Google Scholar
American Bar Association Section of Antitrust Law. 2002. The Federal Antitrust Guidelines for the Licensing of Intellectual Property: Origins and Applications, 2nd ed. Chicago: ABA Publishing.Google Scholar
Areeda, Phillip E., and Hovenkamp, Herbert. 2003. Antitrust Law: An Analysis of Antitrust Principles and Their Application. New York: Aspen Publishers.Google Scholar
Baxter, William. 1966. “Legal Restrictions on Exploitation of the Patent Monopoly: An Economic Analysis,” 76 Yale Law Journal 267–370.Google Scholar
Bork, Robert H. 1965. “The Rule of Reason and the Per Se Concept: Price Fixing and Market Division,” 74 Yale Law Journal 775–847.CrossRefGoogle Scholar
Bork, Robert H.. 1978. The Antitrust Paradox: A Policy at War With Itself. New York: Basic Books.Google Scholar
Bowman, William S. 1973. Patent and Antitrust Law: A Legal and Economic Appraisal. Chicago: University of Chicago Press.Google Scholar
Chisum, Donald S. 2003. Chisum on Patents: A Treatise on the Law of Patentability, Validity and Infringement. Newark, NJ, and San Francisco: Matthew Bender & Co.Google Scholar
Furth, Helmut F. 1958. “Price-Restrictive Patent Licenses Under the Sherman Act,” 71 Harvard Law Review 814–842.Google Scholar
Gifford, Daniel J. 2002. “The Antitrust/Intellectual Property Interface: An Emerging Solution to an Intractable Problem,” 31 Hofstra Law Review 398–418.Google Scholar
Hovenkamp, Herbert, Janis, Mark D., and Lemley, Mark A.. 2004. IP and Antitrust: An Analysis of Antitrust Principles Applied to Intellectual Property Law. New York: Aspen Publishers.Google Scholar
Kaplow, Lewis. 1984. “The Patent-Antitrust Intersection: A Reappraisal,” 97 Harvard Law Review 1813–912.CrossRefGoogle Scholar
Landes, William M., and Posner, Richard A.. 2003. The Economic Structure of Intellectual Property Law. Cambridge, MA: Belknap Press of Harvard University Press.Google Scholar
O’Donoghue, Ted, Scotchmer, Suzanne, and Thisse, Jacques. 1998. “Patent Breadth, Patent Life and the Pace of Technological Progress,” 7 Journal of Economics and Management Strategy 1–32.Google Scholar
Patterson, Mark R. 2002. “When is Property Intellectual: The Leveraging Problem,” 73 Southern California Law Review 1133–60.Google Scholar
Rey, Patrick, and Tirole, Jean. 2006. “A Primer on Foreclosure.” In Armstrong, M. and Porter, R., eds., Handbook of Industrial Organization III. Amsterdam: Elsevier (forthcoming).Google Scholar
Schlicher, John W. 2000. Patent Law: Legal and Economic Principles. Eagan, MN: Thomson/West.Google Scholar
Scotchmer, Suzanne. 1991. “Standing on the Shoulders of Giants: Cumulative Research and the Patent Law,” 5 Journal of Economic Perspectives 29–41.Google Scholar
Shapiro, Carl. 2003. “Antitrust Limits to Patent Settlements,” 34 RAND Journal of Economics 391–411.Google Scholar
Weinschel, Alan J. 2000. Antitrust-Intellectual Property Handbook. Little Falls, NJ: Glasser LegalWorks.Google Scholar
Arthur J. Schmitt Foundation v. Stockham Valves and Fittings, Inc., 292 F. Supp. 893 (N.D. Ala. 1966).Google Scholar
California Dental Assn. v. FTC, 526 U.S. 756 (1999).Google Scholar
Carborundum Co. v. Molten Metal Equip. Innovations, Inc., 72 F.3d 872 (Fed. Cir. 1995).Google Scholar
Ethyl Gasoline Corp. v. U.S., 309 U.S. 436 (1940).Google Scholar
General Talking Pictures Corp. v. Western Electric Co., 305 U.S. 124 (1938).Google Scholar
Hensley Equip. Co., Inc. v. Esco Corp., 383 F.2d 252 (5th Cir. 1967).Google Scholar
Interstate Circuit v. U.S., 306 U.S. 208 (1939).Google Scholar
Morton Salt v. G.S. Suppiger Co., 314 U.S. 488 (1942).Google Scholar
Neal Report (White House Task Force Report on Antitrust Policy), Antitrust & Trade Regulation Reports 411 (Pt. 2) (1969).Google Scholar
Royal Industries v. St. Regis Paper Co., 420 F.2d 449 (9th Cir. 1969).Google Scholar
Shapiro v. General Motors Corp., 472 F. Supp. 636 (D. Md. 1979).Google Scholar
Statute of Monopolies, 21 Jam. I, c.3 (1623)(Eng.).Google Scholar
U.S. v. E.I. du Pont De Nemours & Co., 118 F. Supp. 41 (D. Del. 1953).Google Scholar
U.S. v. General Electric Co., 272 U.S. 476 (1926).Google Scholar
U.S. v. Line Material Co., 333 US 287 (1948).Google Scholar
Adelman, Martin J., and Juenger, Friedrich K.. 1975. “Patent-Antitrust: Patent Dynamics and Field-of-Use Licensing,” 50 New York University Law Review 273–308.Google Scholar
American Bar Association Section of Antitrust Law. 2002. The Federal Antitrust Guidelines for the Licensing of Intellectual Property: Origins and Applications, 2nd ed. Chicago: ABA Publishing.Google Scholar
Areeda, Phillip E., and Hovenkamp, Herbert. 2003. Antitrust Law: An Analysis of Antitrust Principles and Their Application. New York: Aspen Publishers.Google Scholar
Baxter, William. 1966. “Legal Restrictions on Exploitation of the Patent Monopoly: An Economic Analysis,” 76 Yale Law Journal 267–370.Google Scholar
Bork, Robert H. 1965. “The Rule of Reason and the Per Se Concept: Price Fixing and Market Division,” 74 Yale Law Journal 775–847.CrossRefGoogle Scholar
Bork, Robert H.. 1978. The Antitrust Paradox: A Policy at War With Itself. New York: Basic Books.Google Scholar
Bowman, William S. 1973. Patent and Antitrust Law: A Legal and Economic Appraisal. Chicago: University of Chicago Press.Google Scholar
Chisum, Donald S. 2003. Chisum on Patents: A Treatise on the Law of Patentability, Validity and Infringement. Newark, NJ, and San Francisco: Matthew Bender & Co.Google Scholar
Furth, Helmut F. 1958. “Price-Restrictive Patent Licenses Under the Sherman Act,” 71 Harvard Law Review 814–842.Google Scholar
Gifford, Daniel J. 2002. “The Antitrust/Intellectual Property Interface: An Emerging Solution to an Intractable Problem,” 31 Hofstra Law Review 398–418.Google Scholar
Hovenkamp, Herbert, Janis, Mark D., and Lemley, Mark A.. 2004. IP and Antitrust: An Analysis of Antitrust Principles Applied to Intellectual Property Law. New York: Aspen Publishers.Google Scholar
Kaplow, Lewis. 1984. “The Patent-Antitrust Intersection: A Reappraisal,” 97 Harvard Law Review 1813–912.CrossRefGoogle Scholar
Landes, William M., and Posner, Richard A.. 2003. The Economic Structure of Intellectual Property Law. Cambridge, MA: Belknap Press of Harvard University Press.Google Scholar
O’Donoghue, Ted, Scotchmer, Suzanne, and Thisse, Jacques. 1998. “Patent Breadth, Patent Life and the Pace of Technological Progress,” 7 Journal of Economics and Management Strategy 1–32.Google Scholar
Patterson, Mark R. 2002. “When is Property Intellectual: The Leveraging Problem,” 73 Southern California Law Review 1133–60.Google Scholar
Rey, Patrick, and Tirole, Jean. 2006. “A Primer on Foreclosure.” In Armstrong, M. and Porter, R., eds., Handbook of Industrial Organization III. Amsterdam: Elsevier (forthcoming).Google Scholar
Schlicher, John W. 2000. Patent Law: Legal and Economic Principles. Eagan, MN: Thomson/West.Google Scholar
Scotchmer, Suzanne. 1991. “Standing on the Shoulders of Giants: Cumulative Research and the Patent Law,” 5 Journal of Economic Perspectives 29–41.Google Scholar
Shapiro, Carl. 2003. “Antitrust Limits to Patent Settlements,” 34 RAND Journal of Economics 391–411.Google Scholar
Weinschel, Alan J. 2000. Antitrust-Intellectual Property Handbook. Little Falls, NJ: Glasser LegalWorks.Google Scholar
Case and Statutory References
Arthur J. Schmitt Foundation v. Stockham Valves and Fittings, Inc., 292 F. Supp. 893 (N.D. Ala. 1966).Google Scholar
California Dental Assn. v. FTC, 526 U.S. 756 (1999).Google Scholar
Carborundum Co. v. Molten Metal Equip. Innovations, Inc., 72 F.3d 872 (Fed. Cir. 1995).Google Scholar
Ethyl Gasoline Corp. v. U.S., 309 U.S. 436 (1940).Google Scholar
General Talking Pictures Corp. v. Western Electric Co., 305 U.S. 124 (1938).Google Scholar
Hensley Equip. Co., Inc. v. Esco Corp., 383 F.2d 252 (5th Cir. 1967).Google Scholar
Interstate Circuit v. U.S., 306 U.S. 208 (1939).Google Scholar
Morton Salt v. G.S. Suppiger Co., 314 U.S. 488 (1942).Google Scholar
Neal Report (White House Task Force Report on Antitrust Policy), Antitrust & Trade Regulation Reports 411 (Pt. 2) (1969).Google Scholar
Royal Industries v. St. Regis Paper Co., 420 F.2d 449 (9th Cir. 1969).Google Scholar
Shapiro v. General Motors Corp., 472 F. Supp. 636 (D. Md. 1979).Google Scholar
Statute of Monopolies, 21 Jam. I, c.3 (1623)(Eng.).Google Scholar
U.S. v. E.I. du Pont De Nemours & Co., 118 F. Supp. 41 (D. Del. 1953).Google Scholar
U.S. v. General Electric Co., 272 U.S. 476 (1926).Google Scholar
U.S. v. Line Material Co., 333 US 287 (1948).Google Scholar