Patent Commons, Thickets, and Open Source Software Entry by Start-Up Firms

Wen Wen, Marco Ceccagnoli and Chris Forman

No 19394, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We examine whether the introduction of a patent commons, a special type of royalty free patent pool available to the open source software (OSS) community influences new OSS product entry by start-up software firms. In particular, we analyze the impact of The Commons--established by the Open Source Development Labs and IBM in 2005. We find that increases in the size of The Commons related to a software market increase the rate of entry in the market by start-ups using a new product based on an OSS license. The marginal impact of The Commons on OSS entry is increasing in the cumulativeness of innovation in the market and the extent to which patent ownership in the market is concentrated.

JEL-codes: L86 O34 (search for similar items in EconPapers)
Date: 2013-08
New Economics Papers: this item is included in nep-com, nep-ent, nep-ino, nep-ipr, nep-pr~ and nep-tid
Note: IO PR
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Citations: View citations in EconPapers (2)

Published as Wen, W., Ceccagnoli, M., Forman, C. “Opening up IP Strategy: Implications for Open Source Software Entry by Start-Up Firms.” Forthcoming. Management Science.

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