Shapiro.

• Position: Economist - Brief Article

Shapiro finds that in several key industries, including semiconductors, biotechnology, computer software, and the Internet, the current system is creating a "patent thicket": an overlapping set of patent rights requiring that those seeking to commercialize new technology obtain licenses from multiple patentees. The patent thicket is especially thorny when combined with the risk of "hold-up": the danger that new products will inadvertently infringe on patents issued after they were designed. The need to navigate the patent thicket and holdup is especially pronounced in industries such as telecommunications and computing in which formal standard-setting is a core part of bringing new technologies to market. Gross-licenses and...