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Compulsory Licensing: Evidence from the Trading with the Enemy Act

Petra Moser
Stanford University - Department of Economics; National Bureau of Economic Research (NBER)

Alessandra Voena
Stanford University


December 12, 2009


Abstract:     
Compulsory licensing allows firms in developing countries to produce foreign-owned inventions without the consent of foreign patent owners. This paper uses an exogenous event of compulsory licensing after World War I under the Trading with the Enemy Act to examine the long run effects of compulsory licensing on domestic invention. Difference-in-differences analyses of nearly 200,000 chemical inventions suggest that compulsory licensing increased domestic invention by at least 20 percent.

Keywords: Compulsory licensing, licensing, patent law, innovation, invention, TRIPS

JEL Classifications: O3, O34, O12, N00, N42, I10, I18, K33

Working Paper Series

Date posted: June 25, 2009 ; Last revised: December 18, 2009

Suggested Citation

Moser, Petra and Voena, Alessandra, Compulsory Licensing: Evidence from the Trading with the Enemy Act (December 12, 2009). Available at SSRN: http://ssrn.com/abstract=1313867


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Contact Information

Petra Moser (Contact Author)
Stanford University - Department of Economics ( email )
Landau Economics Building
579 Serra Mall
Stanford, CA 94305-6072
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Alessandra Voena
Stanford University ( email )
Stanford, CA 94305
United States
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