Antitrust Analysis Involving Intellectual Property and Standards: Implications from Economics

67 Pages Posted: 12 Feb 2018 Last revised: 19 Feb 2018

Jorge Padilla

Compass Lexecon

Douglas H. Ginsburg

U.S. Court of Appeals for the District of Columbia Circuit; George Mason University - Antonin Scalia Law School, Faculty

Koren Wong-Ervin

Qualcomm Incorporated

Date Written: February 6, 2018

Abstract

There is a significant industrial organization (IO) economics literature on the economics of innovation and intellectual property (IP) protection. As some courts and antitrust agencies have recognized, the IO economics toolkit for business arrangements (e.g., vertical restraints, tying and bundling, etc.) involving IP rights is sufficiently flexible to be applied in high-technology areas involving antitrust and IP. In this Article, the authors explain the economics of innovation and IP protection, licensing, and compulsory licensing, with specific applications to standards development and to standard-essential patents. The authors then propose first-best approaches based on the implications of the economics that courts and agencies can apply at each stage of an antitrust inquiry, from market definition and market power to the assessment of particular business practices. The authors conclude by providing a summary of the approach applied in each major antitrust jurisdiction—China, the European Union, India, Japan, Korea, and the United States.

Keywords: economics of innovation, antitrust, intellectual property, standard-essential patents, SEPs, FRAND, compulsory licensing

JEL Classification: k21, l4, l5

Suggested Citation

Padilla, Jorge and Ginsburg, Douglas H. and Wong-Ervin, Koren, Antitrust Analysis Involving Intellectual Property and Standards: Implications from Economics (February 6, 2018). George Mason Law Review, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3119034 or http://dx.doi.org/10.2139/ssrn.3119034

Jorge Padilla

Compass Lexecon ( email )

Paseo de la Castellana 7
Madrid, 28046
Spain

Douglas H. Ginsburg

U.S. Court of Appeals for the District of Columbia Circuit ( email )

333 Constitution Ave NW
Room 5523
Washington, DC 20001
United States

George Mason University - Antonin Scalia Law School, Faculty ( email )

3301 Fairfax Drive
Arlington, VA 22201
United States

Koren Wong-Ervin (Contact Author)

Qualcomm Incorporated ( email )

1730 Pennsylvania Ave N.W.
Suite 850
Washington DC, DC 20006-1850
United States

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