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Are “Fangs” Monopolies? A Theory of Disequilibrium Competition With Uncertainty

by Nicolas Petitvia IP2 Working Paper Series
Tuesday, April 16, 2019

This paper lays down the rudiments of a descriptive theory of competition among the digital tech platforms known as “FANGs” (Facebook, Amazon, Netflix and Google), amidst rising academic and policy polarization over the answer to what seems to be – at least at the formulation level – a simple question: are FANGs monopolies?

Liability Rules in the Internet of Things: Why Traditional Legal Relations Encourage Modern Technological Innovation

by Richard A. Epsteinvia IP2 Working Paper Series
Tuesday, January 8, 2019

To most experts on cyberspace, the Internet of Things (IoT) is an arena in which novel legal solutions are likely to prove dominant. I take the opposite position, even though—or perhaps precisely because—I have never done much specific work in this area. Contrary to the conventional wisdom, I think that any lack of specialized knowledge offers hidden advantages in working through the basic problems at a high enough level of generality to facilitate setting up a comprehensive liability regime even—perhaps especially—in an area undergoing rapid technological change.

Automatorts: How Should Accident Law Adapt to Autonomous Vehicles? Lessons from Law and Economics

by Eric Talleyvia IP2 Working Paper Series
Monday, January 7, 2019

The introduction of autonomous vehicles (AVs) onto the nation’s motorways raises important questions about our legal system’s adaptability to novel risks and incentive problems presented by such technology. A significant part of the challenge comes in understanding how to navigate the transition period, as AVs interact routinely with conventional human actors. This paper extends a familiar multilateral precaution framework from the law and economics literature by analyzing interactions between algorithmic and human decision makers. 

SEP Royalties: What Theory of Value and Distribution Should Courts Apply?

by Alexander Galetovic, Stephen Habervia IP2 Working Paper Series
Saturday, January 5, 2019

Courts are often required to determine the royalty to which the owner of a FRAND-encumbered standard essential patent (SEP) is entitled. We argue that courts should use the observed royalties charged by licensors, the market rental price of assets created by investments in R&D. This “comparables” technique is used to value virtually all classes of assets and is based on the standard theory of value and distribution, price theory.

Patent Value and Uncertain Property Rights: Implications from Patent Litigation

by Alan C. Marco, Richard D. Millervia IP2 Working Paper Series
Friday, October 26, 2018

In this study, we use carefully constructed matched samples of litigated and non-litigated patents to investigate the characteristics that predict litigation. Survival time regressions allow us to demonstrate the separate impacts of value and uncertainty on litigation. In particular, standard essential patents are more likely to be litigated than non-SEPs. However, the earlier the disclosure is made, the lower the hazard of litigation. That is, when information is provided early to the market, uncertainty is reduced and the hazard of litigation is lower. 

Global Rate-Setting: A Solution For Standards-Essential Patents

by Jorge Contrerasvia IP2 Working Paper Series
Thursday, October 25, 2018

The commitment to license patents that are essential to technical interoperability standards on terms that are fair, reasonable and non-discriminatory (FRAND) is a fundamental mechanism that enables standards to be developed collaboratively by groups of competitors. Yet disagreements over FRAND royalty rates continue to bedevil participants in global technology markets and litigation regarding compliance with FRAND commitments has led an increasing number of courts around the world to adjudicate FRAND royalty rates using very different methodologies and doctrinal approaches. 

Information versus Automation and Implications for Dynamic Pricing

by Bryan K. Bollinger, Wesley R. Hartmannvia IP2 Working Paper Series
Wednesday, October 24, 2018

Essential resources like electricity and water can experience rapidly changing demand or supply while the other side of the market is unchanged. Short-run price variation could efficiently allocate resources at these critical times, but only if consumers exhibit short-run demand elasticity. The question for firms in these markets has always been how to enable this response. Randomized control trials are increasingly used to test dynamic pricing and technologies that can assist in response by providing information and/or automated response.