nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2015‒09‒26
ten papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. The L&E of Intellectual Property – Do we get maximum innovation with the current regime? By Ejan Mackaay
  2. Patent Boxes Design, Patents Location and Local R&D By Annette Alstadsæter; Salvador Barrios; Gaetan Nicodeme; Agnieszka Maria Skonieczna; Antonio Vezzani
  3. Unregistered Well-Known Mark Protection In Indonesia By Rika Ratna Permata
  4. Pharmaceutical patents and generic entry competition: the role of marketing exclusivity By MIYAGIWA, Kaz; WAN, Yunyun
  5. Shedding Light on Inventors' Returns to Patents By Depalo, Domenico; Di Addario, Sabrina
  6. Combining Knowledge and Capabilities across Borders and Nationalities: Evidence from the inventions applied through PCT By TSUKADA Naotoshi; NAGAOKA Sadao
  7. Foreign inventors in the US:\r\n Testing for Diaspora and Brain Gain Effects By Stefano BRESCHI; Francesco LISSONI; Ernest MIGUELEZ
  8. Fresh Brain Power and Quality of Innovation in Cities: Evidence from the Japanese patent database By HAMAGUCHI Nobuaki; KONDO Keisuke
  9. Dead Poet's Property - How Does Copyright Influence Price? By Xing Li; Megan MacGarvie; Petra Moser
  10. Brand Valuation Practices of Small and Medium-Sized Enterprises in the Czech Republic By Monika Harantova; Petr Svoboda

  1. By: Ejan Mackaay
    Abstract: Innovation is crucial to economic growth – the essential path for lifting much of the world population out of dire poverty and for maintaining the living standard of those who already have. To stimulate innovation, the legal system has to support the means through which innovators seek to get rewarded for their efforts and risks taken. Amongst these means, some, such as the first mover advantage or 'lead time,' are not directly legal; but secrets and intellectual property rights are legal institutions supported for the specific purpose of stimulating innovation. Whilst the protection of secrets has not changed very much over recent years, intellectual property (or IP) has. IP borrows some features from ordinary property rights, but is also distinct, in that, unlike physical goods, information, the object of IP, is not inherently scarce; indeed as information and communication technologies expand, the creation and distribution of information is becoming ever cheaper and in many circumstances abundant, so that selection is of the essence ('on the internet, point of view is everything'). New information builds on already existing information. Where rights on information extend too far, their monopolising effect may hamper innovation. The paper investigates the underlying structure of IP rights and surveys what we know empirically about the incentive effects of IP as about industries that flourish without formal IP. L'innovation est essentielle à la croissance économique, elle-même la voie obligée pour faire sortir une grande partie de la population mondiale de la misère et pour maintenir le niveau de vie des personnes qui en sont déjà sorties. Pour stimuler l'innovation, le système juridique doit soutenir les moyens par lesquels les innovateurs cherchent rémunération de leurs efforts et des risques pris. Parmi ceux-ci, certains comme l'« avance de départ » ne sont pas directement juridiques; mais le secret commercial et la propriété intellectuelle sont des institutions juridiques soutenues dans le but précis de stimuler l'innovation. Alors que la protection des secrets n'a pas beaucoup évolué au cours des ans, la propriété intellectuelle (PI) l'a bien. La propriété intellectuelle emprunte certains traits de la propriété classique des biens matériels, mais est aussi distincte, en ce que, contrairement aux biens matériels, l'information – l'objet de la PI – n'est pas par nature rare ; en fait, à mesure que les technologies de l'information et des communications s'étendent, la création et la distribution de l'information devient toujours moins chère. Dans certains cas, l'information devient même abondante à telle enseigne que la sélection et essentielle ('on the internet, point of view is everything'). L'information nouvelle s'appuie sur de l'information déjà disponible. Là où les droits sur l'information, et notamment la PI, s'étendent trop loin, leurs effets monopolisateurs risquent d'interférer avec l'innovation. Le texte examine la structure sous-jacente des droits de propriété intellectuelle et fait un survol de ce que nous savons de manière « empirique » sur les effets incitatifs de la PI de même que des industries qui prospèrent sans droit de propriété intellectuelle formel.
    Keywords: intellectual property – copyright – innovation, propriété intellectuelle, droit d'auteur, innovation
    JEL: K00 K29 L17 O31 O34
    Date: 2015–09–15
  2. By: Annette Alstadsæter (University of Oslo); Salvador Barrios (European Commission JRC-IPTS); Gaetan Nicodeme (European Commission DG TAXUD); Agnieszka Maria Skonieczna (European Commission DG TAXUD); Antonio Vezzani (European Commission JRC-IPTS)
    Abstract: Patent boxes have been heavily debated for their role in corporate tax competition. This paper uses firm-level data for the period 2000-2011 for the top 2,000 corporate research and development (R&D) investors worldwide to consider the determinants of patent registration across a large sample of countries. Importantly, we disentangle the effects of corporate income taxation from the tax advantage of patent boxes. We also exploit a new and original dataset on patent box features such as the conditionality on performing research in the country, and their scope. We find that patent boxes have a considerable effect on attracting patents, mostly because of their favourable tax treatment, especially for high-quality patents. Patent boxes with a large scope in terms of tax base definition also have stronger effects on the location of patents. The size of the tax advantage offered through patent box regimes is found to deter local innovative activities, whereas R&D development conditions tend to attenuate this adverse effect. Our simulations show that, on average, countries imposing such development conditions tend to grant a tax advantage that is slightly greater than optimal from a local R&D impact perspective.
    Keywords: Corporate taxation; patent boxes; location; patents; R&D; nexus approach
    JEL: F21 F23 H25 H73 O31 O34
    Date: 2015
  3. By: Rika Ratna Permata (Faculty of Law, Universitas Padjadjaran)
    Abstract: As a part of Intellectual Property Rights, Trademark have a significant role in trade and business activities. Trade Marks has a function as identification to distinguish the production of goods or services produced by a person as a means to promote of the goods or services as well as a guarantee of the products quality within the same time a mark will create an image on the reputation of the goods or services. and many of them Became well-known mark. Mark represent the goods or services will make the mark became famous mark so it needs legal protection for the marks owners. Indonesia which has been stipulated in Trade Mark Act, 2001 apply first to file system which will provide legal protection to those who register its marks in the Directorate General of Intellectual Property Rights to obtain exclusive rights and legal protection and recognized as a legitimate owners. In the Trade Mark Law especially in Criminal provisions do not set penalties for infringement of unregistered trade mark and raised legal questions as to how the legal action can be taken when there is infringement unregistered well-known in Indonesia.
    Keywords: well-known mark, unregister mark, protection
    JEL: K39
  4. By: MIYAGIWA, Kaz; WAN, Yunyun
    Abstract: Extensive tests required by FDA severely curtail effective patent length for innovation drugs, raising concern that incentives to develop new drugs are insufficient in the U.S. The Hatch-Waxman Act addresses this issue with a five-year patent extension. At the same time, Hatch-Waxman promotes generic entry by reducing the entry cost for generics and by granting 180-day marketing exclusivity to a first challenger of the patent. While these two objectives seem at odds with other, we show that if the entry cost reduction is substantial, granting the marketing exclusivity also contributes to restoration of incentives to innovate. However, market exclusivity most likely decreases social welfare.
    Keywords: innovation, generic entry competition, patent, pharmaceuticals
    JEL: I18 K23 L13
    Date: 2015–08–21
  5. By: Depalo, Domenico; Di Addario, Sabrina
    Abstract: We estimate individual returns to patents using a unique longitudinal administrative dataset on patents and earnings, following individuals and rms for 20 years (1987-2006). We nd that inventors' wages steadily increase before patent applications are submitted to the EPO, peak in the year preceding their ling, and then decrease again. We take the fact that earnings peak at t-1 instead of at t as a bureaucratic delay between the time the invention really takes place and the time when the rm submits the application. We also nd that the applications that will eventually lead to a granted patent receive a greater wage increase than those who will not. Finally, we use an event study framework to distinguish among inventor-types, and we nd that the \star-inventors" (the employees submitting at least three times in their life) receive a lasting wage premium, while the employees with one or two submissions stop receiving the premium after the application date.
    Keywords: Social and Behavioral Sciences, patents, wages, incentives, inventors, perfomances pay, return
    Date: 2014–08–01
  6. By: TSUKADA Naotoshi; NAGAOKA Sadao
    Abstract: This paper analyzes how co-inventions with foreign residents and/or foreign-born inventors contribute to the inventive performance, using the Patent Cooperation Treaty (PCT) applications. We find that combining inventors across borders and nationalities have become important in major industrialized countries, especially in the sectors where science is important for inventions. Both inventions with foreign-born inventors and those with foreign resident inventors have high science linkages, controlling for the sectors. We also find that the inventions based on such collaborations have high performance in terms of forward citations (but not in terms of the geographic scope of patent protection), relative to the inventions by the purely domestic team. These effects diminish but remain significant even if we control for firm fixed effects. However, these effects disappear once we control for the first inventor fixed effects, indicating the possibility that the matching between the high performing domestic inventors and the foreign resident and/or foreign-born inventors plays an important role.
    Date: 2015–09
  7. By: Stefano BRESCHI; Francesco LISSONI; Ernest MIGUELEZ
    Abstract: We assess the role of ethnic ties in the diffusion of technical knowledge by means of a database of patent filed by US-resident inventors of foreign origin, which we identify through name analysis. We consider ten important countries of origin of highly skilled migration to the US, both Asian and European, and test whether foreign inventors’ patents are disproportionately cited by: (i) co-ethnic migrants (“diaspora” effect); and (ii) inventors residing in their country of origin (“brain gain” effect). We find evidence of the diaspora effect for Asian countries, but not for European ones, with the exception of Russia. Diaspora effects do not translate necessarily into a brain gain effect, most notably for India; nor brain gain occurs only in presence of diaspora effects. Both the diaspora and the brain gain effects bear less weight than other knowledge transmission channels, such as co-invention networks and multinational companies.
    Keywords: migration, brain gain, diaspora, diffusion, inventors, patents
    JEL: F22 O15 O31
    Date: 2015
  8. By: HAMAGUCHI Nobuaki; KONDO Keisuke
    Abstract: This paper analyzes whether freshness of knowledge increases the quality of innovation by using the Japanese patent database. Agglomeration is generally believed to foster the creation of new knowledge through knowledge spillover, such as active face-to-face communication; however, expansion of common knowledge within research communities may discourage high-quality innovation. Taking this into consideration, we attempt to examine the turnover effects of knowledge workers across cities by looking at the interregional migration of university graduates. We find that the quality of innovation as measured by the number of patent citations tends to be higher in cities with bigger migration flows of university graduates. More importantly, we find that metabolizing agglomeration plays an important role for high-quality innovative activities.
    Date: 2015–09
  9. By: Xing Li; Megan MacGarvie; Petra Moser
    Abstract: This article exploits a differential increase in copyright under the UK Copyright Act of 1814 - in favor of books by dead authors – to examine the influence of longer copyrights on price. Difference-in-differences analyses, which compare changes in the price of books by dead and living authors, indicate a substantial increase in price in response to an extension in copyright length. By comparison, placebo regressions for books by dead authors that did not benefit from the extension indicate no differential increase. Historical evidence suggests that longer copyrights increase price by improving publishers’ ability to practice intertemporal price discrimination.
    JEL: K00 N33 O3
    Date: 2015–09
  10. By: Monika Harantova (Faculty of Management, University of Economics, Prague); Petr Svoboda (Faculty of Management, University of Economics, Prague)
    Abstract: A brand (respectively trademark) can become a valuable intangible asset of a company, if built and managed correctly. From a customer perspective, the brand grants a guarantee of quality and simultaneously, it represents a strong competitive advantage for a producer or a service provider due to the differentiation of their products and services. The primary objective of this paper is to clarify the valuation practices of small and medium enterprises (SME) in the Czech Republic, based on several case studies. The secondary objective of the article is to point out the valuation differences which arise when using different valuation methods.
    Keywords: Brand, Brand equity, Brand management, Brand value, Methods for brand valuation
    JEL: M31

This nep-ipr issue is ©2015 by Giovanni Ramello. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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