nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2011‒06‒04
six papers chosen by
Roland Kirstein
Otto von Guericke University Magdeburg

  1. Per-Unit Royalty vs Fixed Fee: The Case of Weak Patents By Rabah Amir; David Encaoua; Yassine Lefouili
  2. Patent and Knowhow Licensing in Japan (Japanese) By NISHIMURA Junichi; OKADA Yosuke
  3. An Analysis of Transaction and Joint-Patent Application Networks (Japanese) By INOUE Hiroyasu; TAMADA Schumpeter
  4. An analysis of the adoption of OSS by local public administrations: Evidence from the Emilia-Romagna Region of Italy By Francesco Rentocchini; Dimitri Tartari
  5. Spillovers and Risk of R&D Projects, and Targeting of Public R&D Support (Japanese) By NAGAOKA Sadao; TSUKADA Naotoshi
  6. Do Illegal Copies of Movies Reduce the Revenue of Legal Products? The case of TV animation in Japan (Japanese) By TANAKA Tatsuo

  1. By: Rabah Amir (University of Arizona - University of Arizona); David Encaoua (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris); Yassine Lefouili (GREMAQ - Groupe de recherche en économie mathématique et quantitative - CNRS : UMR5604 - Université des Sciences Sociales - Toulouse I - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - INRA : UMR)
    Abstract: This paper explores a licensor's choice between charging a per-unit royalty or a …fixed fee when her innovation is covered by a weak patent, i.e. a patent that is likely to be invali- dated by a court if challenged. Using a general model where the nature of competition is not speci…ed, we show that the patent holder prefers to use a per-unit royalty scheme if the strategic e¤ect of an increase in a potential licensee's unit cost on the aggregate equi- librium pro…t is positive. To show the mildness of the latter condition, we establish that it holds in a Cournot (resp. Bertrand) oligopoly with homegenous (resp. heterogenous) products under very general assumptions on the demands faced by …rms. As a byproduct of our analysis, we contribute to the oligopoly literature by o¤ering some new insights of independent interest regarding the e¤ects of cost variations on Cournot and Bertrand equilibria.
    Keywords: Keywords: Licensing Schemes, Weak Patents, Patent Litigation.
    Date: 2011–02
  2. By: NISHIMURA Junichi; OKADA Yosuke
    Abstract: Over the past two decades, utilizing markets for technology through licensing and other outsourcing arrangements has emerged as a key to organizing innovative activity. We examine how the rent dissipation effect affects patent and knowhow licensing, controlling organizational capabilities such as firm size, vertical integration, exports, and diversity. A licensor's profit varies and the incentives to license change depending on the rent dissipation effect, which erodes a licensor's profit due to intensifying competition that results from a licensee's entry into the licensor's market. Firms faced with severe competition are marginally exposed to a small rent dissipation effect when licensing their technologies out to rivals, and they can obtain large royalty revenues through such licensing because there are many potential licensees. Using panel data on about ten thousand Japanese firms for the period 1995-2007, we show that the rent dissipation effect facilitates licensing not only between Japanese firms but also between Japanese and foreign firms.
    Date: 2011–02
  3. By: INOUE Hiroyasu; TAMADA Schumpeter
    Abstract: Many firms these days, forced by increasing international competition and an unstable economy, are opting to specialize rather than generalize as a way of maintaining their competitiveness. Consequently, firms cannot rely solely on themselves, but must cooperate by combining their advantages.<br /><br />To obtain the actual conditions for this cooperation, a multi-layered network based on two different types of data was investigated. The first type was transaction data from Japanese firms. The network created from the data included 961,363 firms and 7,808,760 links. The second type of data was from joint-patent applications in Japan. The joint-patent application network included 54,197 nodes and 154,205 links. These two networks were merged into one network. We analyzed the data from the viewpoint of input-output tables, the ERG model, and Bayesian networks.
    Date: 2011–03
  4. By: Francesco Rentocchini; Dimitri Tartari
    Abstract: The wide diffusion of open source software (OSS) is driving discussion among scholars on a set of issues, including its adoption by public administrations (PA). Previous works only discussed one or a few factors that drive the decision to adopt OSS and did not addressed the potential benefits in terms of e-government that OSS may bring to PA. Our paper attempts to fill these gaps. The analysis is based on the Emilia-Romagna region of Italy and studies the adoption of software (both proprietary and open source) by local PA. The results show there is increased adoption of OSS in several different domains of application, both servers and desktop clients. Among the motivations to adopt OSS, only dependence on software suppliers seems to be important. Its adoption also positively affects the variety and extent of interactivity of local public e-services.
    Keywords: open source software; public administration; online public services; empirical research
    Date: 2011
  5. By: NAGAOKA Sadao; TSUKADA Naotoshi
    Abstract: This paper analyzes what types of R&D projects and R&D firms generate important spillover effects, and which are subject to funding constraints. It also analyzes what types of projects and firms are targeted for public support and whether the selection of targets is consistent with spillovers. Using data collected in an inventor survey conducted by the Research Institute of Economy, Trade and Industry and those in the Basic Survey of Business Activities by the Ministry of Economy, Trade and Industry, we focus primarily on corporate research projects. Major findings are as follows:<br /><br />Corporate research projects generate substantial spillovers. For example, about 20% of such projects involve basic research. At the same time, however, about 10% of corporate research projects have been delayed or scaled down due to funding constraints, and one quarter of them have faced constraints in funding commercialization investments. It has been also found that only 3% of Japanese corporate R&D projects receive public support, and 5.6% of the financially constrained projects receive such support.<br /><br />Our statistical analysis suggests that although the estimated conditions explaining public support for R&D are largely consistent with the estimated conditions explaining the spillovers as measured by the publication of scientific papers and the occurrence of serendipity, there are some gaps. Although a firm's highly intensive R&D and participation of a PhD inventor are estimated to be significant sources of spillovers, apparently they are not given high weights in terms of factors related to public support for R&D.
    Date: 2011–04
  6. By: TANAKA Tatsuo
    Abstract: Whether or not illegal copies circulating on the internet reduce the sales of legal products has been a hot issue in the entertainment industries. Though much empirical research has been conducted on the music industry, research on the movie industry has been very limited. This paper examines the effects of the movie sharing site Youtube and file sharing program Winny on DVD sales and rentals of Japanese TV animation programs. Estimated equations of 105 anime episodes show that (1) Youtube viewing does not negatively affect DVD rentals, and it appears to help raise DVD sales; and (2) although Winny file sharing negatively affects DVD rentals, it does not affect DVD sales. Youtube's effect of boosting DVD sales can be seen after the TV's broadcasting of the series has concluded, which suggests that not just a few people learned about the program via a Youtube viewing. In other words YouTube can be interpreted as a promotion tool for DVD sales.
    Date: 2011–01

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