Patents, Antitrust, and Innovation: Evidence From the Xerox Case
Robin Mamrak
Abstract
How does antitrust enforcement affect innovation when patents are the main barrier to entry? I address this question by empirically studying the US antitrust case against Xerox, the former monopolist in the market for plain‐paper copiers. In 1975, Xerox accepted a consent decree whose primary remedy was compulsory licensing of all its copier‐technology patents in the US and abroad. I show that this antitrust intervention promoted innovation by other firms in the copier industry, measured by a disproportionate increase in patenting in technology classes with a higher propensity for containing copier‐related inventions. This effect is driven by Japanese competitors, whose patenting became more novel and diverse as they started developing smaller desktop copiers.
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.50 × 0.4 = 0.20 |
| M · momentum | 0.50 × 0.15 = 0.07 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.