nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2015‒02‒28
six papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. Innovation and the Experience with Agricultural Patents Since 1990: Food for Thought By Douglas C. Lippoldt
  2. Patent Litigation Insurance By Anne Duchêne
  3. Do innovation dimensions matter in China’s cross-regional income differences? By Yang, Jingjing ; Khalil, Sana
  5. The Reanimation Of Piracy: Challenges Of Adapting International Law Norms Into Russia’s Legal System By Anton A. Varfolomeev
  6. An Intangible-Intensive Profile Of Companies: Protection During The Economic Crisis 2008-2009 By Elena Shakina ; Angel Barajas

  1. By: Douglas C. Lippoldt
    Abstract: This report considers developments in agricultural patents since 1990 and their economic implications. It first provides an overview of the international framework for intellectual property protection and of the general trends in the stringency of protection in OECD countries. It then presents developments in the number of patents originating from OECD and other countries that are granted in Europe and the United States, for all fields and for agriculture and food technologies. These illustrate the leading role played by OECD countries in the provision of successful applications, although non-OECD countries increased their share of the total between 1990 and 2010. Finally, econometric analysis is used to assess the relationships between patenting and selected indicators of innovation and economic performance. The results points to favourable economic developments associated with the patent reforms in the recent decades.
    Keywords: intellectual property rights, patents, performance, intellectual property protection, innovation, agriculture
    JEL: O34 Q16 Q17
    Date: 2015–02–23
  2. By: Anne Duchêne
    Abstract: Empirical studies have found that high litigation costs often discourage small firms from investing in R&D, as they fear their patent will be infringed and they will not be able to afford litigation. As a solution, firms have been encouraged to purchase insurance policies which, by covering legal costs in the event of a trial, serve as a commitment to litigate so that settlement terms are more favorable to the insured, and potential infringement is less likely to occur. However, very few firms are purchasing insurance and the market remains poorly developed throughout the world. I show that firms might be discouraged from buying insurance because of information asymmetries, not only with insurance companies but also with their competitors. I study the situation of a patent holder, who perfectly knows the validity and enforceability (“strength”) of her patent, that has been infringed by a competitor with less information on the patent. The patent holder can purchase insurance to have a credible threat to litigate and increase the infringer’s settlement offer. But the decision to buy an insurance conveys information about the patent strength to the infringer. As a result the patent holder may prefer not to be insured rather than transmitting this information. This signaling effect can yield different equilibriums, in particular a pooling equilibrium “no insurance” where no patent holder purchases an insurance. I study if this situation might be improved by imposing a mandatory insurance or by giving the insurer a share of litigation proceeds.
    Keywords: litigation, settlement, patent litigation, insurance.
    JEL: D82 K41 G22 O34
    Date: 2015–02–10
  3. By: Yang, Jingjing ; Khalil, Sana
    Abstract: This paper studies the interlinks between innovation inputs and outputs and between innovation outputs and economic development. Using a panel data-set from 31 regions of China, we show that the difference in regional innovation output can be significantly explained by R&D manpower and expenditure, highly educated students, and public education spending, while GDP is linked to patent, high-tech export share, and new product sales. Our findings provide support for the use of government R&D subsidies and education rebate.
    Keywords: innovation; R&D; education; patents; economic development
    JEL: O1 O3
    Date: 2014–02–06
  4. By: Orachos Napasintuwong (Department of Agricultural and Resource Economics,Faculty of Economics,Kasetsart University,Thailand )
    Abstract: The seed industry in Thailand is among the advanced and well-developed industries in Asia. Maize contributes to the largest share of seed production and trade. The government and international organizations contributed significantly to the success of the maize seed industry in Thailand by building infrastructure for research and promoting the role of the private sector in the industry during the early years. The private sector also added to the industry’s rapid expansion through constant and heavy investment in research and development. Thailand’s goal of becoming a seed hub center in this region is bolstered by its suitable geography and weather, numerous highly trained plant scientists, wide diversity of germplasm, and membership in the Association of Southeast Asian Nations (ASEAN) Economic Community (AEC), which will come into effect at the end of 2015. Despite promising motivations, domestic regulations could be prohibitive factors in Thailand’s becoming competitive in the regional seed market. This paper provides the history of development; an analysis of the current industry’s structure, conduct, and performance; and a review of related regulations of the maize seed industry in Thailand. The lessons learned from the success of the maize seed industry in Thailand could provide implications for the development of the seed industry in other developing countries.
    Keywords: seed, maize, privatization, intellectual property rights, IPR, structure, conduct, performance
    JEL: Q13 L1
    Date: 2015–02
  5. By: Anton A. Varfolomeev (National Research University Higher School of Economics )
    Abstract: This study focuses on the dissonance between the definition of piracy in Russia’s Criminal Code (disposition of Article 227) and piracy as defined by international law (Article 101 of the UN Convention on the Law of the Sea, 1982). This can create obstacles in the appropriate qualification of piracy acts and lead to a certain discord between the two (national and international) law systems. At least four areas of possible disagreements were identified: contradictions over a place to commit an act of piracy; over the object of crime; a purpose, and over a crime’s objective aspect. The paper also investigates the potential competitions between jurisdictions, including situations in Russia’s exclusive economic zone and on board a vessel registered at a Russian port.
    Keywords: piracy, criminal prosecution, universal jurisdiction, collision of jurisdiction, Russia.
    JEL: K33
    Date: 2014
  6. By: Elena Shakina (National Research University Higher School of Economics ); Angel Barajas (National Research University Higher School of Economics )
    Abstract: This study explores the successful strategies of companies during the 2008-2009 economic crisis. We investigate whether it is reasonable for companies to intensify intangibles when markets fall. This paper aims to find empirical evidence that companies with a clear intangible-intensive profile are likely to outperform those without a strategy. The results established in this study shed some light on the global economic crisis in 2008-2009. More than 1600 European companies were involved in the empirical analysis. The findings of this study demonstrate that companies with a conservative profile in intangibles outperform moderate and innovative ones. Still an innovative profile enables a faster recovery after a crisis
    Keywords: economic crisis 2008-2009, strategic profile, intangible-intensive company
    JEL: O30 G30
    Date: 2014

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