4iP News

4iP Council publishes new research on the nature and impact of patent holdout

19 June 2017

Patent Trespass and the Royalty Gap: Exploring the Nature and Impact of “Patent Holdout”

4iP Council's research focus this month is the nature and impact of 'patent holdout'. In a summary paper commissioned by 4iP Council, patent experts Bowman Heiden and Nicolas Petit review the meaning of holdout in mainstream economics. This inquiry leads to an unexpected discovery: holdout is a term of art that invariably defines the conduct of a property owner, not the conduct of technology implementers. On this basis, a discussion is opened on the possible policy impact that the choice of a concept like “holdup” had on policy makers, as opposed to “holdout”. The study is based in part on a cross-sectional investigation. Throughout 2016 and 2017, the authors conducted qualitative interviews with five industry stakeholders on both sides of the patent spectrum, namely SEP holders and SEP implementers.

Visit our research section to download the paper.