Compulsory licensing, price controls, and access to patented foreign products

Eric Saggi () and Saggi Saggi ()
Additional contact information
Eric Saggi: Department of Economics, Vanderbilt University
Saggi Saggi: Department of Economics, Vanderbilt University
Authors registered in the RePEc Author Service: Kamal Saggi () and Eric W. Bond

No 12-00006, Vanderbilt University Department of Economics Working Papers from Vanderbilt University Department of Economics

Abstract: Motivated by existing multilateral rules regarding intellectual property, we develop a North-South model to highlight the dual roles price controls and compulsory licensing play in determining Southern access to a patented Northern product. The Northern patent-holder chooses whether and how to work its patent in the South (either via entry or voluntarily licensing) while the South determines the price control and whether to issue a compulsory license. The threat of compulsory licensing benefits the South and also increases global welfare when the North-South technology gap is significant. The price control and compulsory licensing are complementary instruments from the Southern perspective.

Keywords: Patented Goods; Compulsory Licensing; Price Controls; Quality; Welfare (search for similar items in EconPapers)
JEL-codes: F0 (search for similar items in EconPapers)
Date: 2012-03-07
New Economics Papers: this item is included in nep-com, nep-ind, nep-ino, nep-ipr, nep-pr~ and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Chapter: Compulsory licensing, price controls, and access to patented foreign products (2023)
Journal Article: Compulsory licensing, price controls, and access to patented foreign products (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:van:wpaper:vuecon-12-00006

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