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The Delicate Desire for Monopoly

Joshua Gans
University of Toronto
Core Research

Innovator

Patent

Innovator Distance from substitutes

Patent

Claims
on complements

Facilitates
competition

Can harm
competition

Innovator

• Disclosure
SSOs
Open licensing
Patent pools • Licensing
• Access

Patent

Claims
on complements

Standards SSO rules

Can create markets Can soften competition

Innovator Negotiate
rent division Patent Acquire portfolios
Litigation/exclusion
Regulatory processes

Innovator

Patent

Consumers

Innovator

Innovator

Patent

Patent

Arguments focus on dire consequences
But firms have common ground in securing agreement
Can Commission have role beyond rent division?