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Unilateral vs. cross licensing:A theory and new evidence on the firm-level determinants

Author

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  • Hyeog Ug Kwon
  • Sadao Nagaoka

Abstract

This paper examines the firm level determinants of the incidence of cross-licensing. It develops a simple stochastic theory explaining such incidence, and confirms its implications based on new dataset of licensing contracts by Japanese firms. Among major findings are: (1) Licensing probability has an almost linear relationship with the size of a potential licensor. (2) Cross-licensing is more prevalent between large and symmetric firms. (3) A licensing contract with only patents is more likely to involve cross-licensing than that with only trade secret. (4) A licensor is on the average larger than a licensee.

Suggested Citation

  • Hyeog Ug Kwon & Sadao Nagaoka, 2004. "Unilateral vs. cross licensing:A theory and new evidence on the firm-level determinants," Econometric Society 2004 Far Eastern Meetings 493, Econometric Society.
    • Handle: RePEc:ecm:feam04:493
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    Keywords

    cross-licensing licensing contracts patent;

    JEL classification:

    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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