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Titlenote for Scotchmer: The author thanks the Toulouse Network on Information Technologies for financial support.

Download the Paper (213 K, PDF file) - December 28, 2005 Tell a colleague about it. Printing Tips: Select 'print as image' in the Acrobat print dialog if you have trouble printing.

ABSTRACT:
JEL Classifications: L41, K21 Abstract: When infringement of a patent dissipates profit relative to the licensing agreement that would otherwise occur, damages under the lost-profit rule deter infringement, and otherwise not. We develop this point in a general model and give two examples. However, joint profit might not be dissipated by infringement. An important example is where there are restrictions on licensing that arise from competition policy.

SUGGESTED CITATION:
Mark Schankerman and Suzanne Scotchmer, "Still Looking for Lost Profits: The Case of Horizontal Competition" (December 28, 2005). Economics Department, University of California, Berkeley, Working Paper E05-344.
http://repositories.cdlib.org/iber/econ/E05-344