15th feb, 2013

The MPEG-2 patent pool was harmful to innovation

In the DRUID paper “Competitive Effects of Modern Patent Pools: The Effect of the MPEG-2 Pool on Incumbents’ Innovative Performance” Keyvan Vakili concludes that this particular patent pool was harmful to innovation.
The harm is seen as a decrease in patenting by incumbent firms – not patenting as much as other companies. This effect could be interpreted as companies relaxing after formation of the pool – satisfied with using the technologies within.
Read the paper here.

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