Licensing Policy and Technology Adoption in Standard Setting Organizations
20 Pages Posted: 21 Nov 2014
Date Written: January 2015
The standard setting organizations’ decisions on licensing policy and standard’s technological specification, and the ensuing implications for social welfare are analyzed. The author finds the conditions under which a licensing rule that grants monopoly power to the licensors whose technology is adopted in the standard can be employed by the members of the consortium (ex-post licensing). Moreover, it is shown that the adoption of ex-post licensing might lead to the inefficient exclusion of an efficient stand-alone licensor. Finally, the author discusses the conditions under which a policy of ex-ante licensing can be less efficient than ex-post licensing.
JEL Classification: K21, L15, L24, L42
Suggested Citation: Suggested Citation