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What is the question to which rethinking SSO’s is the answer?

This presentation discusses the role of SSO's in avoiding patent holdup and royalty stacking in the smartphone ecosystem. It presents evidence of cumulative royalty yield and explores the dynamics of the mobile phone industry, technological advancements, and the relationship between technology development companies and implementers.

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What is the question to which rethinking SSO’s is the answer?

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  1. What is the question to which rethinking SSO’s is the answer? Stephen Haber LCII-TILEC Conference, Brussels Belgium May 30, 2017

  2. Purpose of this presentation To inject facts into a debate about how SSO’s can work to avoid “patent holdup and royalty stacking.”

  3. Is there any evidence of royalty stacking by technology development companies in the smartphone ecosystem?

  4. Our estimates include any company that earns significant patent royalty revenue from the smartphone ecosystem, regardless of where it is earned in the supply chain

  5. A cumulative royalty yield of roughly 3.5% has been stable over time

  6. Thebreakdown of smartphonewholesalerevenuein 2015 (ASP = 100%)

  7. The mobile phone industry has been characterized by high levels of entry Source: Galetovic and Gupta (2016)

  8. Consumers have adopted mobile phones rapidly (Annual worldwide sales of devices by technological generation, 1983-2013) Source: Galetovic and Gupta (2016)

  9. There has been rapid technological advance precisely during the period when technology development companies and implementers specialized(Quality-Adjusted Relative Prices of Telephone Equipment according to the US BEA, 1951-2015) Source: Galetovic, Haber and Levine (2015)

  10. Is the SSO debate about a public policy problem, or about supply chain management by low R&D implementers?

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