nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2017‒06‒04
seven papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. Endogenous Recombinant Growth and Intellectual Property Rights By Marchese, Carla; Marsiglio, Simone; Privileggi, Fabio; Ramello, Giovanni B.
  2. Patent Licensing, Entry and the Incentive to Innovate By Yair Tauman; Chang Zhao
  3. Bargaining in Patent Licensing with Inefficient Outcomes By Yair Tauman; Yoram Weiss; Chang Zhao
  4. The Most Valuable Global Brands and Condition of Economies: a Spatial Approach By Wioleta Kucharska; Karol Flisikowski
  5. Open source projects as incubators of innovation: From niche phenomenon to integral part of the software industry By Schrape, Jan-Felix
  6. The Security Level of the Results of Intellectual Activity and Piracy: Mathematical Modeling of the Impact on Public Wealth By Shastitko, Andrey E.; Morosanova, Anastasia A.; Meleshkina, Anna I.
  7. The Production of Information in an Online World: Is Copy Right? By Cagé, Julia; Hervé, Nicolas; Viaud, Marie-Luce

  1. By: Marchese, Carla; Marsiglio, Simone; Privileggi, Fabio; Ramello, Giovanni B.
    Abstract: We show that, even in a framework in which monopolistic exploitation of patents does not occur, patents still give rise to serious drawbacks. We build on Weitzman’s (1998) recombinant growth model which provides a stylized but clear description of the formation of knowledge externalities. In our framework a benevolent government buys immediately new patents in a competitive market and releases their contents for free. We show that inefficiencies nevertheless arise and welfare can be improved by correcting the market price through a tax-subsidy scheme. We characterize the (asymptotic) steady state equilibrium, and some properties of the transitional path. We show that if certain conditions are met, then the economy will converge to its (asymptotic) balanced growth path, and along such a path growth will be independent of the policy parameter; conversely, transition dynamics are affected by the choice of the policy parameter. We then quantitatively analyze the effect of different policy interventions on welfare, and show that stricter tax (weaker appropriability) regimes lead to higher social welfare.
    Date: 2017–05
  2. By: Yair Tauman; Chang Zhao
    Date: 2017
  3. By: Yair Tauman; Yoram Weiss; Chang Zhao
    Date: 2017
  4. By: Wioleta Kucharska (Gdansk University of Technology, Gdansk, Poland); Karol Flisikowski (Gdansk University of Technology, Gdansk, Poland)
    Abstract: Research background: Brands are considered to be the most valuable asset of a company. Some of them achieve spectacular global results. The significance of global brands is proved by the fact that their value is often greater than the sum of all company’s net assets. Purpose of the article: The aim of this article is to highlight that brand value does not only create company’s value but also leverages economies. We claim that even though global brands are sold worldwide they more strongly contribute to the development of economies in the countries where these brands’ owners are located. Methodology/methods: Based on 500 Brandirectory, the most Valuable Global Brands ranking powered by Brand Finance, we have discovered a spatial-economic autocorrelation to illustrate the potential interdependency between GDP and brand value which constitutes a foundation for further construction of a spatial regression model. Because the ranking data was only available for the year 2014, the analyses were performed for 33 selected countries. Findings: Our findings confirm the hypothesis that assumptive spatial dependencies matter for the investigated relationship between brand value and GDP. The evidence is based on the spatial error and the spatial lag model, although the former has a slightly better performance than the latter alternative.
    Keywords: GDP; brand value; spatial economics
    JEL: F63 M31
    Date: 2017–05
  5. By: Schrape, Jan-Felix
    Abstract: Over the last 20 years, open source development has become an integral part of the software industry and a key component of the innovation strategies of all major IT providers. Against this backdrop, this paper seeks to develop a systematic overview of open source communities and their socio-economic contexts. I begin with a reconstruction of the genesis of open source software projects and their changing relationships to established IT companies. This is followed by the identification of four ideal- typical variants of current open source projects that differ significantly in their modes of coordination and the degree of corporate involvement. Further, I examine why open source projects have mainly lost their subversive potential while, in contrast to former cases of collective invention, remaining viable beyond the emergence of predominant solutions and their commercial exploitation: In an industry that is characterized by very short innovation cycles, open source projects have proven to be important incubators for new product lines and branch-defining infrastructures. They do not compete against classical forms of production but instead complement and expand these.
    Date: 2017
  6. By: Shastitko, Andrey E. (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Morosanova, Anastasia A. (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Meleshkina, Anna I. (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: This work reflects the main aspects that must be taken into account when developing and modifying policies for regulating the sphere of intellectual property. Piracy, despite all its obvious shortcomings, has a number of positive properties, which can be useful for the owners of the rights to RIA: informational, network and indirect effects. The paper presents a mathematical model, showing a case where the protection of RIA introduced in contrast to the actions of Pirates may cause more damage to public welfare than itself piracy. There is a need for a more flexible tool (than the system of intellectual property), which would make each owner of the IP able to choose required level of protection.
    Date: 2017–02
  7. By: Cagé, Julia; Hervé, Nicolas; Viaud, Marie-Luce
    Abstract: This paper documents the extent of copying and estimates the returns to originality in online news production. We build a unique dataset combining all the online content produced by the universe of news media (newspaper, television, radio, pure online media, and a news agency) in France during the year 2013 with new micro audience data. We develop a topic detection algorithm that identifies each news event, trace the timeline of each story and study news propagation. We show that one quarter of the news stories are reproduced online in less than 4 minutes. High reactivity comes with verbatim copying. We find that only 32.6% of the online content is original. The negative impact of copying on newsgathering incentives might however be counterbalanced by reputation effects. By using media-level daily audience and article-level Facebook shares, we show that original content represents 57.8% of online news consumption. Reputation mechanisms actually appear to solve about 40% of the copyright violation problem.
    Keywords: Copyright; Facebook; Information spreading; internet; Investigative journalism; reputation
    JEL: L11 L15 L82 L86
    Date: 2017–05

This nep-ipr issue is ©2017 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.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.