nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2015‒02‒22
six papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. The Use of Intellectual Property in Brazil By Vivian Barcelos; Marina Filgueiras Jorge; Bruno Le Feuvre; Felipe Lopes; Sergio Medeiros Paulino de Carvalho; Vera Pinheiro; Julio Raffo; Leonardo Ribeiro
  2. How Can Proprietary Software Firms Take Advantage Over Open Source Communities? Another Story of Pro…fitable Piracy By Thomas Le Texier; Mourad Zeroukhi
  3. Outside directors on the board, competition and innovation By Buchwald, Achim; Thorwarth, Susanne
  4. Economic Growth, Patent Race, and the Distribution of R&D Firms By Tetsugen Haruyama
  5. Brand Loyalty, Volume of Trade and Leapfrogging: Consumer Behavior for Durable Experience Goods By Martin Paredes
  6. Why do users choose Open Source software? Analysis of the network effect By Dorota Celińska; Mirosława Lasek

  1. By: Vivian Barcelos (Instituto Nacional da Propriedade Industrial, Assessoria de Assuntos Econômicos, Brazil.); Marina Filgueiras Jorge (Instituto Nacional da Propriedade Industrial, Assessoria de Assuntos Econômicos, Brazil.); Bruno Le Feuvre (Economics and Statistics Division, World Intellectual Property Organization, Geneva, Switzerland.); Felipe Lopes (Instituto Nacional da Propriedade Industrial, Assessoria de Assuntos Econômicos, Brazil.); Sergio Medeiros Paulino de Carvalho (Instituto Nacional da Propriedade Industrial, Assessoria de Assuntos Econômicos, Brazil.); Vera Pinheiro (Instituto Nacional da Propriedade Industrial, Assessoria de Assuntos Econômicos, Brazil.); Julio Raffo (Economics and Statistics Division, World Intellectual Property Organization, Geneva, Switzerland.); Leonardo Ribeiro (Instituto Nacional de Metrologia, Qualidade e Tecnologia, Brazil.)
    Abstract: This study describes patterns and trends of intellectual property (IP) use in Brazil, drawing on a new statistical database (BADEPI) containing all IP filings at Brazilian Instituto Nacional da Propriedade Industrial (INPI) over the period 2000-2011. This novel database contains a unique set of information about patents, utility models, industrial designs, trademarks, geographical indications, computer programs and IP-related contracts. In addition, the study documents the methodology to construct this novel database from bibliographical unit-record data, which among others makes use of unique identification of applicants and inventors across all forms of IP.
    Keywords: Intellectual Property, Patents, Trademarks, Innovation, Brazil.
    Date: 2014–12
  2. By: Thomas Le Texier (CREM UMR CNRS 6211, University of Rennes 1, France); Mourad Zeroukhi (Foundation of the University of Rennes 1, CREM CNRS UMR 6211 and IDEC)
    Abstract: This paper analyzes the impact on a proprietary software (PS) firm's profit of the activities of an open source software (OSS) community and a piracy channel, as well as on welfare. We develop a model in which the PS firm competes by price with both producers and also selects its compatibility strategy towards the OSS solution and its protection strategy towards the software copy (PPS). We show that the existence of the piracy channel incumbent enables the PS firm to reach out higher profit than when piracy is prevented. A key mechanism at stake is that the PS monopolist can define its compatibility strategy so as to level price competition down while extending its market share at the same time. Although it has to provide some protection efforts towards the piracy channel to do so, the extra revenues it generates always overcome such latter costs. From a regulatory point of view, our results stress that welfare is higher when piracy is prevented while the PS firmsets compatibility towards the OSS solution.
    Keywords: Anti-copy Protection; Compatibility; Externalities; Open Source Software; Piracy; Proprietary Software
    JEL: L11 L82 L86
    Date: 2015–01
  3. By: Buchwald, Achim; Thorwarth, Susanne
    Abstract: We investigate the influence of non-executive outside directors on firms' innovative performance for a sample of 1,393 listed firms in the EU - 15 member states plus Norway and Switzerland in the period 2005 to 2010. Our results show that the fraction of non-executive outside directors on the board is associated with a significant decrease in the number of patent applications if competition in the market is low. This may indicate that restrictive monitoring and lower advising competences of outside directors mitigate executives' incentives to innovate. In industries with effective competition, the negative influence of outsiders is offset by the pressure to focus on innovation strategies.
    Keywords: Competition,Corporate Governance,Innovation,Patents,Board Composition,Outside Directors
    JEL: G34 L14 L25 M21 O31
    Date: 2015
  4. By: Tetsugen Haruyama (Graduate School of Economics, Kobe University)
    Abstract: The paper constructs a general equilibrium model model where the rate of technical progress and the distribution of R&D expenditure by heterogeneous research firms are simultaneously determined. Using the model, we explore the effects of the following policy measures on those two endogenous variables: (i) subsidies to flow variable R&D costs, (ii) subsidies to flow fixed R&D costs, (iii) an increase in entrant firms into a series of patent races, and (iv) an increase in the supply of human capital as inputs to R&D. Contrasting results are demonstrated. For example, subsidies to flow variable R&D costs promote technical progress and induce the exit of R&D firms with low R&D productivity. That is, the policy accelerates technological progress through R&D by "elite" firms. On the other hand, the opposite result holds if subsidies are applied to flow fixed R&D costs.
    Keywords: R&D, Patent race, technical progress, heterogeneous firms, firm distribution
    Date: 2015–01
  5. By: Martin Paredes (Universidad de Piura)
    Abstract: We present a dynamic model that addresses how the interaction between durability and experience consumers’ replacement decisions. Despite obsolescence, consumers keep used goods because of quality uncertainty of new goods. Contrary to adverse selection articles, incomplete trade in secondary markets can be efficient provided experience involves idiosyncratic tastes. As some consumers decide which vintage to buy depending on past experiences, brand loyalty can be higher for new goods. When consumers’ expected experience differs across brands, the best brand exhibits higher loyalty, larger sales, longer ownership spells, and higher resale prices, results consistent with evidence from the U.S. automobile industry.
    Keywords: Durable goods, experience goods, consumer behavior
    JEL: D82 D83 L15
    Date: 2015–02
  6. By: Dorota Celińska (Faculty of Economic Sciences, University of Warsaw); Mirosława Lasek (Faculty of Economic Sciences, University of Warsaw)
    Abstract: This article analyses the phenomenon of using the Open Source software. Its aim is to verify the existence of a positive direct network effect that characterizes using of the Open Source software. The multivariate probit model is used to extract factors motivating users to the usage of the Open Source software. Special attention is paid to demographic characteristics of users, as well as to the impact of users' acquaintances, such as family, work and school on using the Open Source software. The results of the conducted analysis confirm our research.
    Keywords: Open Source, software, source code, end user characteristics, network effect, multivariate probit, motivation
    JEL: L17 L86 C38 D12
    Date: 2015

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