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15 UCLA J.L. & Tech. 1 (2011)

handle is hein.journals/ujlt15 and id is 1 raw text is: 




Spring 2011                    www.lawtechjournal.com             Volume 15, Issue 1

UCLA Journal of Law & Technology


PROGRESS IN   THE  AIRCRAFT   INDUSTRY   AND  THE ROLE   OF PATENT   POOLS
AND  CROSS-LICENSING AGREEMENTS

                              Dustin R. Szakalski

       This paper explores the challenges that widely dispersed property rights-a so-

called tragedy of the anticommons -has presented to the aircraft industry in the past

and suggests that patent pools and cross-licensing agreements are appropriate private

mechanisms the industry can use to resolve such challenges in the future. The

Manufacturers Aircraft Association (MAA), a patent pool formed among aircraft

manufacturers at the insistence of the Secretary of War prior to World War I, provides

both the historical foundation for aircraft patent pools and a baseline model for the

resolution of future obstacles facing the aircraft industry. This paper suggests that a

properly structured modern-day aircraft patent pool should incorporate many of the

features of the Manufacturers Aircraft Association-including open availability to all

industry firms and a unanimously approved royalty-rate structure-in order to provide

the broadest and most cost-efficient access to valuable aircraft patents while

simultaneously encouraging the member firms to compete in the marketplace.


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