Patent-holding firms willing to license innovations in competitive markets.
The article explores how companies with patents decide to share their new technologies with other companies in a competitive market. When companies pay a fixed fee to use the technology, the patent holder is more likely to share if the products are not very similar or if the technology is not a big improvement. When companies pay royalties based on sales, the patent holder is usually willing to share and may even share big improvements with multiple companies if the products are not too similar.