Standard Essential Patents and the Distribution of Gains from Trade for Innovation

16 Pages Posted: 29 Feb 2016

See all articles by Florian Ramel

Florian Ramel

Technische Universität Berlin (TU Berlin)

Maximilian von Laer

Technische Universität Berlin (TU Berlin)

Knut Blind

Technische Universität Berlin (TU Berlin)

Date Written: March 2016

Abstract

An earlier study finds that standard-essential patents (SEPs) enhance trade and additionally lead to a phenomenon of global cross-licensing, i.e., global value chains (GVCs) arise along those countries in which companies will act as both licensor and licensee of SEPs. This, however, simultaneously leads to the situation that SEP-induced GVCs are a relatively closed-off club of companies that profit from the artificial temporary monopoly awarded by patents and their connection to standards. The paper proposes several paths for future research with the goal to uncover the micro-mechanisms of these findings. The principal questions asked are (1) How can intermediate producers (i.e. global network suppliers for instance in Korea and China) profit from GVCs in which many SEPs are used? (2) How is upgrading (i.e. moving up in the GVC towards performing more elaborated tasks) in an SEP-induced GVC possible? (3) How can a company reach a position that allows it to exert control over a GVC?

Suggested Citation

Ramel, Florian and von Laer, Maximilian and Blind, Knut, Standard Essential Patents and the Distribution of Gains from Trade for Innovation (March 2016). Working Paper, East-West Center Workshop on Mega-Regionalism - New Challenges for Trade and Innovation. Available at SSRN: https://ssrn.com/abstract=2745496 or http://dx.doi.org/10.2139/ssrn.2745496

Florian Ramel (Contact Author)

Technische Universität Berlin (TU Berlin) ( email )

Straße des 17
Juni 135
Berlin, 10623
Germany

Maximilian Von Laer

Technische Universität Berlin (TU Berlin) ( email )

Straße des 17
Juni 135
Berlin, 10623
Germany

Knut Blind

Technische Universität Berlin (TU Berlin) ( email )

Straße des 17
Berlin
Germany

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