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Innovation Under Threat? An Assessment of the Evidence for Patent Holdup and Royalty Stacking in SEP-Intensive, IT Industries

BY | September 15, 2016

By Alexander Galetovic & Stephen Haber – Many authors argue that innovation in IT is under threat.For many years Patent Holdup Theory has influenced antitrust thinking and action in SEP-intensive…

By Alexander Galetovic & Stephen Haber

Many authors argue that innovation in IT is under threat.For many years Patent Holdup Theory has influenced antitrust thinking and action in SEP-intensive industries. While the theory predicts market failure, SEP-intensive industries have thrived and consumers have benefited from better products at lower prices. Is Patent Holdup a failed theory and if so, should it be used in antitrust policy?

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