nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2016‒04‒09
five papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. Growth and welfare effects of intellectual property rights when consumers differ in income By Christian Kiedaisch
  2. Technology entry in the presence of patent thickets By Bronwyn H. Hall; Christian Helmers; Georg von Graevenitz
  3. Regional Innovation Systems in China: A long-term perspective based on patent data at the prefectural level By Giorgio Prodi; Federico Frattini; Francesco Nicolli
  4. Copyright Enforcement: Evidence from Two Field Experiments By Hong Luo; Julie Holland Mortimer
  5. DIGITAL PIRACY: FACTORS THAT INFLUENCE THE INTENTION TO PIRATE – A STRUCTURAL EQUATION MODEL APPROACH By Rúben Meireles; Pedro Campos

  1. By: Christian Kiedaisch
    Abstract: This paper analyzes how changing the expected length of intellectual property right (IPR) protection affects growth and the welfare of rich and poor consumers. The analysis is based on a product-variety model with non-homothetic preferences and endogenous markups in which, in accordance with empirical evidence, rich households consume a larger variety of goods than poorer ones. Unlike in models with homothetic preferences, the effect of intellectual property (IP) protection on growth depends on the distribution of income: when the length of IP protection is (uniformly) increased, growth increases when there is inequality among households consuming IP protected goods, but stays constant when there is no such inequality. When wealth is unequally distributed, reducing the length of IP protection for new but not for previously issued IPRs can increase growth. In the case where increasing the length of IP protection increases growth, poor households prefer a shorter length of protection than richer ones, although they consume fewer IP protected goods.
    Keywords: Intellectual property rights, income distribution, endogenous growth, nonhomothetic preferences
    JEL: O34 O31 L16 D30 O15
    Date: 2016–03
    URL: http://d.repec.org/n?u=RePEc:zur:econwp:221&r=ipr
  2. By: Bronwyn H. Hall (Institute for Fiscal Studies); Christian Helmers (Institute for Fiscal Studies and Santa Clara University); Georg von Graevenitz (Institute for Fiscal Studies and Queen Mary University of London)
    Abstract: We analyze the effect of patent thickets on entry into technology areas by firms in the UK. We present a model that describes incentives to enter technology areas characterized by varying technological opportunity, complexity of technology, and the potential for hold-up in patent thickets. We show empirically that our measure of patent thickets is associated with a reduction of first time patenting in a given technology area controlling for the level of technological complexity and opportunity. Technological areas characterized by more technological complexity and opportunity, in contrast, see more entry. Our evidence indicates that patent thickets raise entry costs, which leads to less entry into technologies regardless of a firm’s size.
    Keywords: IPR, patents, entry, technological opportunity, technological complexity, hold-up
    JEL: O34 O31 L20 K11
    Date: 2016–02
    URL: http://d.repec.org/n?u=RePEc:ifs:ifsewp:16/02&r=ipr
  3. By: Giorgio Prodi (Department of Economics and Management, University of Ferrara, Italy.); Federico Frattini (Department of Economics and Management, University of Ferrara, Italy.); Francesco Nicolli (IRCrES-CNR, Milano, Italy.)
    Abstract: This paper focuses on the connections between long-term development and Regional Innovation Systems (RIS) in China. It aims to investigate how the evolution of RIS fits with China’s overall process of economic upgrading. The analysis relies on Chinese patent applications filed to the EPO during the period 1981 to 2009, which authors have regionalised at a prefectural level. Conceptu-ally, the investigation concerns the relative prevalence of indexes derived from inventors’ and ap-plicants’ localisation to describe local innovation activities in terms of emergence, development and reinforcement. The hypothesis ranks higher those prefectures where indigenous applicants prevail, that is, the initiative, organisation and exploitation of innovation activities are foremost local (or endogenous). Results return the possibility of grouping Chinese prefectures into six clusters. On this basis, RIS features appear to diffuse, even while regional concentration of innovation activities is still increasing. This pattern is deemed to fit the process of industrial development in China very well. As it was in the past, RIS benefit from the opportunities that a long-term development strategy provides, but face its limits as well.
    Keywords: China; development; endogeneity; patent; reform; Regional Innovation System
    Date: 2016–04
    URL: http://d.repec.org/n?u=RePEc:srt:wpaper:0316&r=ipr
  4. By: Hong Luo (Harvard Business School); Julie Holland Mortimer (Boston College)
    Abstract: Effective dispute resolution is important for reducing private and social costs. We study how resolution responds to changes in price and communication using a new, extensive dataset of copyright infringement incidences by firms. The data cover two field experiments run by a large stock-photography agency. We find that substantially reducing the requested amount generates a small increase in the settlement rate. However, for the same reduced request, a message informing infringers of the price reduction and acknowledging possible unintentionality generates a large increase in settlement; including a deadline further increases the response. The small price effect, compared to the large message effect, can be explained by two countervailing effects of a lower price: an inducement to settle early, but a lower threat of escalation. Furthermore, acknowledging possible unintentionality may encourage settlement due to the typically inadvertent nature of these incidences. The resulting higher settlement rate prevents additional legal action and reduces social costs.
    Date: 2016–02–19
    URL: http://d.repec.org/n?u=RePEc:boc:bocoec:907&r=ipr
  5. By: Rúben Meireles (Faculty of Economics, University of Porto); Pedro Campos (Faculty of Economics, University of Porto and LIAAD INESC TEC)
    Abstract: Faster internet connections are breaking most of the geographic barriers. At the same time, the huge digital content that have been generated in last years is motivating new forms of digital piracy. We know that piracy of copyrighted digital material has a huge impact on countries’ economy, being a major issue for the whole society and not only for content creators. The purpose of this paper is to investigate digital piracy intention. For that purpose, we have expanded the framework of the theory of planned behavior using the utility theory, the deterrence theory and other relevant constructs. Using data from students of a Portuguese university and high school, a sample of 590 questionnaires has been collected. Two models were developed and analyzed using structural equation modeling. The first considers the full sample (Full Model), while the second considers only those who had pirated (Pirate Model). The pirate model confirmed the existence of a significant and strong relation between past behavior and intention towards digital piracy.
    Keywords: Information and Internet Services; Computer Software, Digital Piracy, Theory of Planned Behavior, Deterrence Theory, Structural Equation Modeling
    JEL: L86
    Date: 2016–03
    URL: http://d.repec.org/n?u=RePEc:por:fepwps:573&r=ipr

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