Patent Trespass and the Royalty Gap: Exploring the Nature and Impact of “Patent Holdout” (Full Report)

by Bowman Heiden and Nicolas Petit – August 2017

07 September 2017

This paper reviews 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.