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Effects of Compulsory Licensing on Social Welfare and R&D Incentives
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Type
Academic journal
Author
Journal
Korean Law And Economics Association Korean Journal of Law and Economics Vol.12 No.3 KCI Accredited Journals
Published
2015.12
Pages
427 - 442 (16page)

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Effects of Compulsory Licensing on Social Welfare and R&D Incentives
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I theoretically analyze the compulsory licensing of intellectual property, comparing it to the essential facilities doctrine. Using a simple model, the conditions under which the licensing would enhance the economic welfare are examined. I show that, unlike Gilbert and Shapiro(1996)’s claim, there exist compulsory licensing rules which not only prevent entry of inefficient producers, but also do not reduce firms’incentives for research and development in the long run. Such socially optimal licensing rules are shown to be closely related to the concept of the Baumol-Willig efficient component pricing rule. Nevertheless, it is also shown that if the firm owning intellectual property has the discretion to set a licensing fee, then compulsory licensing is not necessary from the social point of view since voluntary licensing occurs whenever licensing is socially desirable.
#연구개발 #R& #D #Essential Facilities Doctrine #Intellectual Property #지적 재산 #필수설비이론 #Efficient Component Pricing Rule #강제적 라이선싱 #Compulsory Licensing

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References (11)

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[학술지(정기간행물)] - Armstrong, Mark / 1996 / The Access Pricing Problem: A Synthesis / Journal of Industrial Economics 44 (2) : 131 ~ 150 google schola [학술지(정기간행물)] - Armstrong, Mark / 1998 / The Access Pricing Problem with Deregulation: A Note / Journal of Industrial Economics 46 (1) : 115 ~ 121 google schola [학술지(정기간행물)] - Baumol, William J. / 1983 / Some Subtle Issues in Railroad Regulation / International Journal of Transport Economics 10 : 341 ~ 355 google schola [단행본] - Baumol, William J / 1994 / Toward Competition in Local Telephony / MIT Press google schola [학술지(정기간행물)] - Gilbert, Richard / 1990 / Optimal Patent Length and Breadth / Rand Journal of Economics 21 (1) : 106 ~ 112 google schola

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