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

Hyeog Ug Kwon () and Sadao Nagaoka

No 493, Econometric Society 2004 Far Eastern Meetings from Econometric Society

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.

Keywords: cross-licensing; licensing; contracts; patent (search for similar items in EconPapers)
JEL-codes: O34 L20 (search for similar items in EconPapers)
Date: 2004-08-11
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