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The Structure of Licensing Contracts
Author(s) -
Anand Bharat N.,
Khanna Tarun
Publication year - 2000
Publication title -
the journal of industrial economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.93
H-Index - 77
eISSN - 1467-6451
pISSN - 0022-1821
DOI - 10.1111/1467-6451.00114
Subject(s) - intellectual property , ex ante , business , industrial organization , interpretation (philosophy) , variation (astronomy) , simple (philosophy) , law and economics , economics , law , computer science , political science , philosophy , physics , epistemology , astrophysics , macroeconomics , programming language
Industrial organization theory has explored several issues related to licensing, but empirical analyses are extremely rare. We amass a new and detailed dataset on licensing contracts, and use it to present some simple ‘facts’ concerning licensing behavior. Our analysis reveals robust cross‐industries differences in several contractual features, such as exclusivity, cross‐licensing, ex‐ante versus ex‐post technology transfers, and licensing to related versus unrelated parties. We offer an interpretation of these facts based on cross‐industry variation in the strength of intellectual property rights.