Abstract
When negotiating with multiple licensors, anti-stacking royalty clauses allow the licensee to reduce its payment to the original licensor in proportion to the royalty rate of subsequent licensors. I show that these clauses increase the licensing burden on the licensee and lead to higher prices and smaller output. The licensee and the original licensor could increase the profits of all parties by removing the anti-stacking clause.
Original language | English (US) |
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Article number | 110890 |
Journal | Economics Letters |
Volume | 221 |
DOIs | |
State | Published - Dec 2022 |
Keywords
- Ad valorem rates
- Anti-stacking clause
- Licensing
- Royalty stacking
ASJC Scopus subject areas
- Finance
- Economics and Econometrics