Standard Setting Organizations: Answer to the Tragedy of the Anticommons?

Christopher Stadnick

6/13/2008
(Original Publish Date: 11/12/2002)

The “tragedy of the anticommons” is applicable to intellectual as well as real property, and, in particular, to patent law. The argument is that when there are too many intellectual property rights, exclusionary rights, blocking patents, and high transaction costs will stifle innovation. More accurately, when several parties own patents covering a certain technology, process or invention, each can exercise their exclusive rights to prevent others from using, developing or marketing that technology, process or invention. Therefore, where it is too costly to reach a licensing agreement, the technology, process or invention remains undeveloped.