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Does Compulsory Licensing Discourage Invention? Evidence from German Patents after World War I

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Authors: Joerg Baten, Nicola Bianchi, and Petra Moser Abstract: This paper investigates whether compulsory licensing – which allows governments to license patents without the consent of patent-owners – discourages invention. Our analysis exploits new historical data on German patents to examine the effects of compulsory licensing under the US Trading-with-the-Enemy Act on invention in Germany. [...]

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