RESEARCH / DIGITIZATION · RESEARCH POLICY · 2022
Disclosure Rules and Declared Essential Patents
Summary
Develops a model of the standardization process linking disclosure rules to patent-holder incentives, tested with novel data from the top standard-setting organizations. Subtle policy differences change which patents get disclosed; disclosed patents earn up to 20% more citations — and are more likely to be litigated.
In the paper, we develop a simple model of the standardization process to illustrate the link between disclosure rules and patent-holder incentives, and test its predictions using novel data from the top standard setting organizations. Subtle differences in policies influence which patents are disclosed and their licensing commitments. Using a difference-in-differences approach, we show that disclosed patents receive up to 20% more citations than matched controls, but are also more likely to be litigated. Our findings illustrate the trade-offs standard setting organizations face in crafting an effective intellectual policy to encourage agreement between competing third-parties.
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