Abstract
We examine how some early corporations used patents to control competition, thus creating monopoly or cartel positions, with super-normal profits. We thus highlight one economic rationale for the rise of the giant corporation, expanding the Chandlerian paradigm. Based on evidence from the House of Representatives', 1912 "Oldfield hearings" and three industry case studies, we demonstrate how patent pools and restrictive licensing of fundamental patents led to the stifling of innovation and to negative competition and welfare effects. Focusing on pooling and licensing agreements is particularly important, as these, unlike patents themselves, are not normally open to public scrutiny.
Original language | English |
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Article number | 104651 |
Number of pages | 10 |
Journal | Research Policy |
Volume | 52 |
Issue number | 1 |
Early online date | 13 Oct 2022 |
DOIs | |
Publication status | Published - 31 Jan 2023 |
Keywords
- intellectual property rights
- business history
- patent pools
- restrictive licensing
- industry control
- USA corporations
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Dive into the research topics of 'Patents, industry control, and the rise of the giant American corporation'. Together they form a unique fingerprint.Prizes
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Publication Prize _ Strathclyde Business School
Spadavecchia, A. (Recipient), Jan 2023
Prize: Other distinction