COMPETITION AND IP POLICY IN HIGH-TECHNOLOGY INDUSTRIES

APRIL 19, 2016

CORNERSTONE RESEARCH COMPETITION AND IP POLICY IN HIGH-TECHNOLOGY INDUSTRIES

This one-day conference will explore the latest developments at the intersections of high technology, law, and economics. Topics include: • New technologies and their implications for competition and regulation • Big data: how it changes the ways that firms compete and its antitrust effects • The impact of the America Invents Act on innovation and competition • The legal and economic challenges of the on-demand economy

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SIEPR | John A. and Cynthia Fry Gunn Building | Koret-Taube Conference Center 366 Galvez Street | Stanford University | Stanford, CA 94305 PROGRAM AGENDA

8:00–8:45 am BREAKFAST AND REGISTRATION

8:45–9:00 am WELCOME AND INTRODUCTION Gregory L. Rosston, Deputy Director and Senior Fellow, SIEPR; Director, Stanford Public Policy Program Michael D. Topper, Senior Vice President, Cornerstone Research

9:00–9:45 am INTERVIEW A Conversation with Bill Baer, Assistant Attorney General, Antitrust Division, U.S. Department of Justice Gregory L. Rosston, Deputy Director and Senior Fellow, SIEPR; Director, Stanford Public Policy Program

10:00–11:15 am COMPETITIVE IMPLICATIONS OF EMERGING TECHNOLOGIES Moderator: Roger Noll, Professor of Economics, Emeritus, Stanford University; Senior Fellow, Emeritus, SIEPR Speakers: Steve Eglash, Executive Director, Data Science Programs, Stanford University Andrea Goldsmith, Stephen Harris Professor in the School of Engineering, Stanford University Shane Greenstein, MBA Class of 1957 Professor of Business Administration, Harvard Business School

1 PROGRAM AGENDA

11:30 am–12:45 pm UNDERSTANDING THE COMPETITION AND ANTITRUST CONCERNS POSED BY BIG DATA Moderator: A. Douglas Melamed, Professor of the Practice of Law, Stanford Law School Speakers: Susan Athey, The Economics of Technology Professor, Stanford Graduate School of Business; Senior Fellow, SIEPR Timothy F. Bresnahan, Landau Professor in Technology and the Economy, Stanford University; Senior Fellow, SIEPR; Former Deputy Assistant Attorney General and Chief Economist, Antitrust Division, U.S. Department of Justice Michael Ostrovsky, Professor of Economics, Stanford Graduate School of Business

1:00–2:00 pm LUNCH ADDRESS Alison Oldale, Deputy Director of Antitrust, Bureau of Economics, Federal Trade Commission

2:15–3:30 pm PATENT REFORM AND HIGH-TECHNOLOGY INDUSTRIES Moderator: Matthew R. Lynde, Senior Vice President, Cornerstone Research Speakers: Mark A. Lemley, William H. Neukom Professor of Law, Stanford Law School; Director, Stanford Program in Law, Science and Technology; Senior Fellow, SIEPR; Partner, Durie Tangri Richard C. Levin, Former Member, President’s Council of Advisors on Science and Technology Robert P. Taylor, Owner and Founder, RPT Legal Strategies PC

2 PROGRAM AGENDA

3:45–5:00 pm THE ON-DEMAND ECONOMY AND CHALLENGES TO EXISTING REGULATORY AND COMPETITION FRAMEWORKS Moderator: Kostis Hatzitaskos, Principal, Cornerstone Research Speakers: Marina Lao, Director, Office of Policy Planning, Federal Trade Commission Jonathan Levin, Professor of Economics, Stanford University; Senior Fellow, SIEPR Justin McCrary, Professor of Law and D-Lab Director, University of California, Berkeley

5:00 pm CLOSING Gregory L. Rosston, Deputy Director and Senior Fellow, SIEPR; Director, Stanford Public Policy Program Michael D. Topper, Senior Vice President, Cornerstone Research

RECEPTION TO FOLLOW

MCLE Cornerstone Research is a State Bar of California approved MCLE provider. This program has been approved for 5.0 hours by the State Bar of California. Application for MCLE credit in other states will be made as needed. Certificates will be sent out within 30 days of the program.

3 SPEAKER BIOGRAPHIES

Susan Athey The Economics of Technology Professor, Stanford Graduate School of Business; Senior Fellow, SIEPR

Susan Athey’s research focuses on the economics of the Internet, statistical methods for causal inference, marketplace design, and the intersection of computer science and economics. Recently Professor Athey has been working on methods for analyzing large-scale experiments; combining machine learning methods and econometrics; and theoretical and empirical studies of Internet search, online advertising, and the news media. She advises governments and businesses on the design of auction-based marketplaces and platform economics, including several years as consulting chief economist for Microsoft. Professor Athey also serves on the boards of directors for Expedia and Ripple, a financial technology firm. A winner of the John Bates Clark Medal, awarded by the American Economic Association to the American economist under forty who has made a significant contribution to economic thought and knowledge, she was elected to the National Academy of Sciences, the American Academy of Arts and Sciences, and the Econometric Society. She has served as editor or associate editor of leading economics journals and has been on the faculty at MIT and Harvard.

Bill Baer Assistant Attorney General, Antitrust Division, U.S. Department of Justice

Bill Baer was sworn in as the Assistant Attorney General for the Antitrust Division on January 3, 2013. Prior to his appointment at the Department of Justice, he was a Partner and Head of the Antitrust Practice Group at Arnold & Porter LLP in Washington, DC, with extensive experience in both criminal and civil antitrust investigations, including merger and acquisition reviews by antitrust enforcement agencies in the United States and globally. He previously worked at the Federal Trade Commission, most notably as the Director, Bureau of Competition.

4 SPEAKER BIOGRAPHIES

Timothy F. Bresnahan Landau Professor in Technology and the Economy, Stanford University; Senior Fellow, SIEPR; Former Deputy Assistant Attorney General and Chief Economist, Antitrust Division, U.S. Department of Justice

Timothy Bresnahan specializes in industrial organization and the economics of technology, including competition and innovation in high-technology industries, and technical change by users of information technologies and antitrust economics. Professor Bresnahan has served as Chair of the Economics Department at Stanford University. He has also directed the Stanford Computer Industry Project and the Center on Employment and Economic Growth at SIEPR. Professor Bresnahan studies the economic process by which raw technology generates value in use, as well as the econometric measurement of market power and testing of models of imperfect competition. His current research includes entry and appropriability in technology industries, competition between old- and new-paradigm computing, and economic organization for high social return to technical progress.

Steve Eglash Executive Director, Data Science Programs, Stanford University

Steve Eglash is Executive Director of Stanford University’s programs in big data, artificial intelligence, and the Internet of Things. He structures and manages research programs, bridging research and industry, working to improve the impact and relevance of academic research at Stanford. Previously, Dr. Eglash was the founding Executive Director of Stanford’s Energy and Environment Affiliates Program. Prior to joining Stanford, he was President and CEO of the solar energy company Cyrium Technologies, consultant to the National Renewable Energy Laboratory and the U.S. Department of Energy, a venture capitalist at Worldview Technology Partners, Vice President at SDL (JDSU), and a member of the technical staff at MIT Lincoln Laboratory. As vice president at the semiconductor laser company SDL Inc., he was part of the management team that grew this company to annual revenue of $1 billion and engineered one of the largest high-technology acquisitions in history. Dr. Eglash has written more than forty papers published in peer-reviewed journals and has four patents.

5 SPEAKER BIOGRAPHIES

Andrea Goldsmith Stephen Harris Professor in the School of Engineering, Stanford University

Andrea Goldsmith’s research is on developing novel techniques, protocols, and designs for future wireless systems and networks. Her research areas include the design and capacity analysis of wireless systems and networks, multiple-antenna wireless networks, cognitive radios, sensor and networks, cross-layer wireless network design, and applications of communications and signal processing to health and neuroscience. Professor Goldsmith cofounded and served as CTO for two wireless companies: Wildfire.Exchange, which develops software-defined wireless network technology for cloud-based management of WiFi access points; and Quantenna Communications Inc., which develops high-performance WiFi chipsets. She also serves on the technical advisory boards of several public and private companies. Professor Goldsmith has received several awards for her work, including the IEEE Communications Society Armstrong Award, the IEEE Communications Society and Information Theory Society joint paper award, the National Academy of Engineering Gilbreth Lecture Award, the Alfred P. Sloan Research Fellowship, and the Silicon Valley/San Jose Business Journal’s Women of Influence Award. She is author or coauthor of three books on wireless communication from Cambridge University Press.

Shane Greenstein MBA Class of 1957 Professor of Business Administration, Harvard Business School

Shane Greenstein teaches in Harvard Business School’s Technology and Operations Management unit and cochairs the school’s Digital Initiative. Professor Greenstein also codirects the program on the economics of digitization at the National Bureau of Economic Research. Encompassing an array of questions about computing, communication, and Internet markets, Professor Greenstein’s research extends from economic measurement and analysis to broader issues. His most recent book focuses on the development of the commercial Internet in the United States. He also publishes commentary on his blog, Digitopoly, and his work has been covered by media outlets ranging from the New York Times and the Wall Street Journal to Fast Company and PC World. Professor Greenstein previously taught at the Kellogg School of Management, Northwestern University; and at the University of Illinois at Urbana-Champaign.

6 SPEAKER BIOGRAPHIES

Kostis Hatzitaskos Principal, Cornerstone Research

Kostis Hatzitaskos is an industrial organization economist specializing in econometrics. He focuses on antitrust and competition matters, spanning both merger reviews and litigation. In his work on antitrust litigation, Dr. Hatzitaskos has addressed class certification, liability, and damages issues in matters involving allegations of price fixing, exclusionary conduct, monopolization, and market manipulation. His merger review experience includes Intel–McAfee, Sysco–US Foods, and other transactions. Dr. Hatzitaskos has worked on matters in multiple industries, including high- technology consumer products, information technology, telecommunications, and semiconductors. Dr. Hatzitaskos also consults on intellectual property matters. He worked on the determination of RAND-compliant royalty rates and assisted at trial in the seminal Microsoft v. Motorola case. He has also conducted and applied survey analyses to address questions of consumer demand for high-technology consumer products driven by patent-related features, and evaluated claims of irreparable harm associated with alleged copyright infringement in high-technology industries.

Marina Lao Director, Office of Policy Planning, Federal Trade Commission

Marina Lao took a leave of absence from Seton Hall Law School to serve in her current position at the Federal Trade Commission. Professor Lao joined the Seton Hall law faculty in 1994 after over a decade of practice in government and the private sector. Her scholarly work focuses on aspects of antitrust enforcement. She has provided invited testimony to the House Judiciary Committee’s Subcommittee on Intellectual Property, Competition and the Internet, and at workshops sponsored by the FTC and the Antitrust Division of the U.S. Department of Justice. She was a member of the Advisory Board of the American Antitrust Institute, and was Chair of the Section of Antitrust and Economic Regulation of the Association of American Law Schools. Professor Lao began her legal career with the Department of Justice’s Antitrust Division as a trial attorney.

7 SPEAKER BIOGRAPHIES

Mark A. Lemley William H. Neukom Professor of Law, Stanford Law School; Director, Stanford Program in Law, Science and Technology; Senior Fellow, SIEPR; Partner, Durie Tangri

Mark Lemley teaches intellectual property, computer and Internet law, patent law, trademark law, antitrust, and remedies. He is the author of more than one hundred articles and seven books, including IP and Antitrust. His works have been cited more than two hundred times by courts, including eleven U.S. Supreme Court opinions, and he is one of the five most cited legal scholars of all time. Professor Lemley has testified several times before Congress and has filed numerous amicus briefs before the U.S. Supreme Court, the California Supreme Court, and the federal circuit courts of appeals. He is a founding partner of Durie Tangri LLP. His clients have included Comcast, Genentech, DISH Network, Google, Grokster, Guidewire, Hummer Winblad Venture Partners, Netflix, and the University of Colorado Foundation. Professor Lemley has been named one of the twenty-five most influential people in IP by American Lawyer.

Jonathan Levin Professor of Economics, Stanford University; Senior Fellow, SIEPR

Jonathan Levin chaired the Stanford Economics Department from 2011 to 2014. He directs the Industrial Organization Program at the National Bureau of Economic Research. Professor Levin has worked on the economics of contracting and organizations, auctions and matching, credit and insurance markets, and econometric methods for analyzing imperfect competition. His current interests include Internet platforms, the healthcare system, and ways to incorporate new datasets into economic research. Professor Levin received the John Bates Clark Medal from the American Economic Association (AEA) as the economist under the age of forty who has made the most significant contribution to economic thought and knowledge. He is a Fellow of the American Academy of Arts and Sciences, a Guggenheim Fellow, and the winner of department and school-wide teaching awards.

8 SPEAKER BIOGRAPHIES

Richard C. Levin Chief Executive Officer, Coursera; Former Member, President’s Council of Advisors on Science and Technology

Rick Levin is currently CEO of Coursera, an education platform that partners with universities and organizations to offer courses online. Professor Levin served on President Obama’s Council of Advisors on Science and Technology, and chaired a National Academy of Sciences panel that recommended changes to U.S. patent law. He completed a twenty-year term as President of Yale University in 2013, leading an expansion of the university’s programs and resources. Previously and concurrently, he served as the Frederick William Beinecke Professor of Economics at Yale University. Professor Levin is a Director of American Express and C3 Energy. He is also a Fellow of the American Academy of Sciences and the American Philosophical Society. Professor Levin has received honorary degrees from Harvard, Princeton, Oxford, and Peking Universities.

Matthew R. Lynde Senior Vice President, Cornerstone Research

Matthew Lynde has more than thirty years of experience as an applied economist in government, academic, and commercial environments. Originally trained in electrical engineering, his research focused on innovation and patent economics, and he consults on the valuation and licensing of intellectual property portfolios. Dr. Lynde has served as a damages expert witness in numerous intellectual property infringement cases in state and federal courts, foreign courts, and in both domestic and international arbitration. These assignments have mainly been in high-technology industries such as computer and telecommunications hardware and software, medical and military devices, and pharmaceutical and biotech products. His testimony includes the calculation of reasonable and nondiscriminatory (RAND) royalties for standard-essential patents in Microsoft v. Motorola and other high-profile cases. Formerly, Dr. Lynde was a professor at City College of New York and a partner at PricewaterhouseCoopers.

9 SPEAKER BIOGRAPHIES

Justin McCrary Professor of Law and D-Lab Director, University of California, Berkeley

Justin McCrary is an expert in statistics and economic modeling at the intersection of law and economics, with a particular interest in antitrust. His research areas include the effects of tick-size regulation on high-frequency trading and market quality, econometric methodology, and the economics of corporate law. Professor McCrary is the founding Director of the UC Berkeley Social Sciences Data Laboratory, or “D-Lab,” an innovative center supporting the use of big data in social science research. He is also a faculty research associate at the National Bureau of Economic Research. Professor McCrary has extensive experience as a consulting expert on antitrust cases, and served as a consultant for the U.S. Department of Justice in its review of the proposed AT&T acquisition of T-Mobile. Professor McCrary has published on the use of econometric methodology, statistics, and economic theory in a range of areas.

A. Douglas Melamed Professor of the Practice of Law, Stanford Law School

Doug Melamed practiced law for forty-three years before he began teaching at Stanford University in 2014. From 2009 until 2014, he was Senior Vice President and General Counsel of Intel Corporation, responsible for overseeing Intel’s legal, government affairs, and corporate affairs departments. Prior to joining Intel, he was a partner in the Washington, DC, office of WilmerHale, where he chaired the Antitrust and Competition Practice Group. His practice included appellate and trial court litigation and representing clients in matters before government law enforcement and regulatory agencies. From 1996 to 2001, Professor Melamed served in the U.S. Department of Justice as Acting Assistant Attorney General in charge of the Antitrust Division and as Principal Deputy Assistant Attorney General. He has authored numerous articles on antitrust and on law and economics. Professor Melamed is a member of the American Law Institute and the boards of directors of the Nasdaq exchanges and a contributing editor of the Antitrust Law Journal.

10 SPEAKER BIOGRAPHIES

Roger Noll Professor of Economics, Emeritus, Stanford University; Senior Fellow, Emeritus, SIEPR

Roger Noll directs the SIEPR Program in Regulatory Policy. Professor Noll is a Senior Fellow and member of the Advisory Board of the American Antitrust Institute. He was a Senior Economist at the President’s Council of Economic Advisers, and a Senior Fellow at the Brookings Institution. His research interests include technology policy, antitrust, regulation and privatization policies in both advanced and developing economies, and the economic approach to public law (administrative law, judicial processes, and statutory interpretation). Professor Noll has been a member of the advisory boards of the U.S. Department of Energy, the Jet Propulsion Laboratory, the National Aeronautics and Space Administration, the National Renewable Energy Laboratory, and the National Science Foundation. He is the author or coauthor of fourteen books and over three hundred articles and reviews.

Alison Oldale Deputy Director of Antitrust, Bureau of Economics, Federal Trade Commission

Alison Oldale rejoined the Federal Trade Commission (FTC) in December 2015. She had previously worked for the FTC as Deputy Director for Antitrust on a detail assignment from the United Kingdom’s Competition Commission, where she was Chief Economist. Dr. Oldale has advised both regulatory agencies and private companies on high-profile mergers and other competition matters in the United States and in Europe. Her particular areas of expertise are pharmaceuticals, transport, entertainment and media, intellectual property, telecommunications, and healthcare.

11 SPEAKER BIOGRAPHIES

Michael Ostrovsky Professor of Economics, Stanford Graduate School of Business

Michael Ostrovsky’s research is in the areas of game theory, market design, industrial organization, and finance. Most recently he has analyzed information aggregation in financial markets, the properties of Internet advertising auctions, stability in trading networks, and voting in shareholder meetings. Professor Ostrovsky is a Research Associate at the National Bureau of Economic Research and has codirected its Working Group on Market Design. He is an Associate Editor of Econometrica, and serves on the board of editors for the American Economic Journal: Microeconomics. He has been a visiting scientist at Google and a National Fellow at the Hoover Institution. His honors include a National Science Foundation grant and an Alfred P. Sloan Research Fellowship.

Gregory L. Rosston Deputy Director and Senior Fellow, SIEPR; Director, Stanford Public Policy Program

Gregory Rosston teaches economics and public policy at Stanford University. Dr. Rosston was formerly Deputy Chief Economist at the Federal Communications Commission (FCC), where he worked on the implementation of the Telecommunications Act of 1996 and helped to design and implement the first spectrum auctions in the United States. He has written extensively on the application of economics to telecommunications issues and is the coeditor of two books relating to telecommunications. Dr. Rosston has consulted to various organizations, including the World Bank and the FCC. He has served as a board member and advisor to high-technology, financial, and startup companies in the areas of auctions, business strategy, antitrust, and regulation.

12 SPEAKER BIOGRAPHIES

Robert P. Taylor Owner and Founder, RPT Legal Strategies PC

Bob Taylor is a lawyer whose primary focus is intellectual property and antitrust issues. For over forty years, he has represented clients of all sizes in technology-related matters, including patent and trade secret litigation, licensing, and investing. His experience extends to a diverse range of technologies and industries, and includes digital signal processing, optics, computing, semiconductor manufacturing, digital hardware design, software, pharmaceuticals, and medical devices. For more than a decade he has represented venture capital firms and invest- ment banks with respect to the intellectual property aspects of prospective technology investments, and he has advised a number of companies in both patent strategy planning and patent litigation matters. He is an active participant in the Intellectual Property Owners Association and for many years served as Cochair of its Antitrust Committee and a member of its Amicus Committee. Mr. Taylor is a Fellow of the American College of Trial Lawyers.

Michael D. Topper Senior Vice President, Cornerstone Research

Michael Topper has led Cornerstone Research’s work in antitrust and competition matters. He has more than twenty years of experience working on economic issues associated with complex business litigation and regulatory proceedings. Dr. Topper leads case teams on a range of liability, damages, and class certification issues in antitrust, regulatory, product misrepresentation, product liability, intellectual property, and contract dispute matters. He has expertise in applying microeconomics, econometrics, statistics, and survey analyses. Dr. Topper has significant experience in a number of industries, including telecommunications, media, information technology, financial institutions, transportation, and energy. He has consulted on merger reviews by U.S. agencies and the European Commission, regulatory proceedings before the Federal Trade Commission, and matters before the Copyright Royalty Board. Dr. Topper has served as an expert in Federal Communications Commission proceedings involving mergers and acquisitions, including Comcast–NBCUniversal and Comcast–Time Warner Cable; mobile wireless competition; and broadband Internet access.

13 CORNERSTONE RESEARCH cornerstone.com siepr.stanford.edu