Licensing of standard essential patents: Hold-up, reverse hold-up, and ex-ante negotiation

Standard essential patents are patents that are needed in order to comply with a particular standard. Technologies protected by such patents are granted on the condition that rights holders commit to licensing the patents on fair, reasonable, and non-discriminatory terms. This column surveys three key issues that arise under these licensing agreements: hold-up, reverse hold-up, and ex-ante negotiation. The discussion highlights how patent award procedures affect the incentives for firms to invest in R&D.

https://voxeu.org/article/licensing-standard-essential-patents

Sadao Nagaoka

VOX

 

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