nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2011‒11‒21
six papers chosen by
Roland Kirstein
Otto von Guericke University Magdeburg

  1. A Supply Side Story for a Threshold Model: Endogenous Growth of the Free and Open Source Community By Francesco Rullani; Lorenzo Zirulia
  2. Sources of Heterogeneity in the Efficiency of Indian Pharmaceutical Firms By Mainak Mazumdar; Meenakshi Rajeev; Subhash Ray
  3. Trade Policy Mix and the STO: Protection of TRIPS and R&D Subsidies By Moonsung Kang
  4. How University Departmens respond to the Rise of Academic Entrepreneurship? The Pasteur's Quadrant Explanation By Yuan-Cheih Chang; Phil Yihsing Yang; Tung-Fei Tsai-Lin; Hui-Ru Chi
  5. Modelos open source y responsabilidad social By García-García, Jesús; Alonso de Magdaleno, María Isabel
  6. Counting the Costs of Collective Rights Management of Music Copyright in Europe By Ghafele, Roya; Gibert, Benjamin

  1. By: Francesco Rullani; Lorenzo Zirulia
    Abstract: The study of social institutions producing and disseminating knowledge has mainly concentrated on two main concepts: Science and Technology. This paper examines a recent institutional form that seems not to resemble either of the other two; that is, knowledge-intensive communities, where individuals freely exchange knowledge through information and communication technology. Using free and open source software as an example, we develop a model where this phenomenon is confronted with Technology with respect to its ability to attract researchers.
    Keywords: Free and open source software; science; technology; community; intellectual property rights
    JEL: O31 L86 L88
    Date: 2011
  2. By: Mainak Mazumdar (Centre De Science Humaines); Meenakshi Rajeev (Institute for Social and Economic Change); Subhash Ray (University of Connecticut)
    Abstract: Using the non parametric approach of Data Envelopment Analysis (DEA) this paper examines firm’s heterogeneity in the Indian pharmaceutical industry by measuring their input and output efficiencies for the period 1991 to 2005. The analysis establishes that even though firms have been able to make efficient use of inputs like labor and raw material the output efficiency of the firms reveals a declining trend. The phenomenon can be attributed to the differences in the size of firms and the presence of economies of scale in production. Further analysis reveals the importance of firm specific factors like its strategies and structure for variation in output efficiency. We find firms that are vertically integrated with down-stream raw-material industry are more efficient. We also find that R&D is a possible strategic option for firms to gain higher efficiency but only for the large sized firms.
    Keywords: Patents, Pareto-Koopmans Efficiency, Data Envelopment Analysis (DEA)
    JEL: L65 C61
    Date: 2011–11
  3. By: Moonsung Kang (KIEP - Korea Institute for International Economic Policy)
    Abstract: This paper provides a theoretical framework to explain why governments seek restrictions on IPR protection and allow R&D subsidies through multilateral trade agreements such as the TRIPS Agreement and the Agreement on Subsidies and Countervailing Measures. After 7 years of discussion, the Uruguay Round extends GATTs trade-liberalizing philosophy to worldwide use of subsidies as a secondary means to intervene in international trade. Through the Agreement on Subsidies and Countervailing Measures the WTO tries to preserve one of basic principles of GATTs philosophy: Fair Competition. The principle of Fair Competition is of particular importance in understanding the WTO. To harness GATTs trade liberalizing philosophy, the WTO as a successor of GATT takes this principle as objectives that are pursued through the enforcement and implementation of other principles, for instance the nondiscrimination and reciprocity. As an example of the fair competition principle, the WTO prohibited any type of export subsidies through the Agreement on Subsidies and Countervailing Measures, but allowed R&D subsidies. The allowance of R&D subsidies by the WTO is a puzzle because it is well known that R&D subsidization forms the prisoners dilemma when governments are active to set R&D policy. In order to find any reasonable logic to explain this puzzle, we focus on the interaction between strategic trade policy tools: R&D subsidization and IPR protection. Indeed, at an international level IPR protection has been a major focus of negotiations along with R&D subsidies. The WTO also requires member countries to strongly enforce patent protection through the TRIPS Agreement. In our analysis, it turns out that it is globally optimal to perfectly disseminate knowledge without IPR protection and to subsidize inventive firms by solving a problem that the weak IPR protection damages firms incentive to invest in R&D activities. However, current trade agreements do not match with our global optimum. We show that exporting countries may benefit at the expense of importers from a trade agreement to demand stronger enforcement on IPR protection because exporting countries experience the prisoners dilemma problem when both countries free ride on the rival firms R&D outcome. Therefore we conclude that it is possible to understand the TRIPS Agreement as an inefficient victory of the interests of northern exporting countries over those of southern importing countries.
    Keywords: Trade Policy Mix, TRIPS, R&D subsidies, Agreements on Subsidies, Countervailing Measures
    JEL: O32 O34 F13
    Date: 2011–11
  4. By: Yuan-Cheih Chang; Phil Yihsing Yang; Tung-Fei Tsai-Lin; Hui-Ru Chi
    Abstract: This paper examines how universities can develop a new organizational structure to cope with the rise of academic entrepreneurship. By deploying the Pasteurian quadrant framework, knowledge creation and knowledge utilization in universities are measured. The relationships between university antecedents, Pasteurian orientation, and research performance are analyzed. A survey of university administrators and faculty members collected 634 responses from faculty members in 99 departments among 6 universities. The findings indicate that university antecedents of strategic flexibility and balancing commitment contribute to a greater Pasteurian orientation in university departments. The higher degree of Pasteurian orientation has significantly positive impacts on the performance both of knowledge creation and knowledge utilization. Moreover, the Pasteurian orientation acts as a mediator between university antecedents and research performance. Using cluster analysis, the departments are categorized into four groups. The differences between university- and department- factors in these four groups are examined and discussed. We conclude that not all university departments should move toward the Pasteurian group, and there are specific organizational and disciplinary factors resulting in mobility barriers among groups. Policies to encourage academic entrepreneurship should consider these mobility barriers, along with this new governance of science.
    Keywords: Academic entrepreneurship, Pasteur’s quadrant, research excellence, research commercialization
    Date: 2011
  5. By: García-García, Jesús; Alonso de Magdaleno, María Isabel
    Abstract: Because open source assets are developed collectively, there is no single source for cost estimates of how much it has taken to develop the technology. There is a great value on open source delopments (OSD), but current legal framework for financial reporting doesn’t allow to report on them like on other assets. Thus, financial statements could be insufficient to assess properly the performance and the value generation potential. It is clear that ICT (information and communications technology) industry need a methodology to measure OSD and put such measure into organizational reports. OSD could be seen as a matter of social responsibility. Commitment to OSD means sharing technology and resources with communities worldwide to help eliminate the digital divide, create economic opportunity, and foster equal access to technology. Opening up a technology allows others to contribute innovations that individual companies might never have devised on their own, or at least much more quickly. The objective of our research is to identify indicators in order to measure OSD performance in ICT sector. Motivation that led us to carry out this analysis was the fact that, despite the many benefits attributed to OSD, no information about them was disclosed on annual reports. To reach our goal, we are conducting a webmetric study. We examine several successful OSD websites looking for success indicators. Our final objective is to recommend a methodology to calculate specific indicators about OSD to be disclosed on social responsibility reports.
    Keywords: open source; responsabilidad social; TIC; innovación; divulgación
    JEL: M14 G34 M4
    Date: 2011–09
  6. By: Ghafele, Roya; Gibert, Benjamin
    Abstract: The identification and clearance of music copyright is a complex process that suffers from high transaction costs when managed by individual rightsholders. The pooling of music copyright in collective rights management organizations has historically reduced these costs, while providing a larger, and thus more attractive, repertoire to commercial users via the issuance of blanket licenses.However, the development of digital distribution channels and automated clearance technologies for music copyright across multiple borders presents a number of challenges to the current system. As music consumption increasingly takes digital forms, Europe must modernize its collective rights management system in response. The results of this study show there is a very large market for digital music in Europe. As broadband penetration increases and competition amongst Internet Service Providers (ISPs) in Europe enhances access to the Internet, this market will grow rapidly. The market is valued at over 2.6 billion Euro in France, Germany and the UK alone. This constitutes a potential royalty market of 212 million Euro. Yet, only 49 million Euro in royalty revenue from online sources was collected by SACEM, GEMA and PRS for Music. Moreover, the majority of this revenue was collected by PRS for Music in the UK, which is the smallest of the three markets but by far the most efficient CRMO for the collection of royalties from online sources. Other nations in Europe, though significantly smaller, still represent a valuable market opportunity. The disparity between potential and actual revenue for all of the European markets suggests there are problems with the current collective rights management system. The percentage of the royalty market captured in the USA was over 4% more than the European average. New solutions should be sought to capitalize on the market opportunity of digital music services in light of increasing broadband penetration and changing consumer patterns in Europe. This should help unlock the potential of digital music markets, consolidate the single European market, increase competition in the administration of collective rights, and provide better services to European consumers.
    Keywords: Transaction Cost Theory; Collective Rights Management; Digital Music Market; European Union; Royalty Distribution Efficiency
    JEL: L44 O34 Z11
    Date: 2011–10–17

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