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
- Part IV Club Theory
- Part V Evolutionary Game Theory
- Part VI Public Policy
- Part VII Living Legacy
- Part VIII Epilog
- Bibliography
- Index
- References
Document
Published online by Cambridge University Press: 12 October 2017
- 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
- Part IV Club Theory
- Part V Evolutionary Game Theory
- Part VI Public Policy
- Part VII Living Legacy
- Part VIII Epilog
- Bibliography
- Index
- References
Summary
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.
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- On the Shoulders of GiantsColleagues Remember Suzanne Scotchmer's Contributions to Economics, pp. 230 - 262Publisher: Cambridge University PressPrint publication year: 2017