nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2020‒10‒05
three papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. Private and Public IPR Protection in a Vertically Differentiated Software Duopoly By Kresimir Zigic; Jiri Strelicky; Michal Kunin
  2. Linguistic Metrics for Patent Disclosure: Evidence from University Versus Corporate Patents By Nancy Kong; Uwe Dulleck; Adam B. Jaffe; Shupeng Sun; Sowmya Vajjala
  3. Pharmaceutical Exports and Patents in India – An Empirical Investigation By Bibek Ray Chaudhuri; Sucharita Bhattacharyya; Susmita Chatterjee

  1. By: Kresimir Zigic; Jiri Strelicky; Michal Kunin
    Abstract: We study the interaction between public and private intellectual property rights (IPR) protection in a duopoly in which software developers offer a product variety of differing quality and compete for heterogeneous users, who have an option to buy a legal version, possibly use an illegal copy, or not buy a product at all. Illegal usage implies violation of IPR and is punishable. A developer may use private IPR protection for his software if the level of piracy is high. An important intermediate step in our analysis addresses firms’ pricing strategies and the analysis of the impact of both private and public IPR protection on these strategies (with monopoly serving as a benchmark case). Last but not least, we make some comparisons with an analogous model based on horizontal product differentiation.
    Keywords: vertically differentiated duopoly; software piracy; Bertrand competition; copyright protection; private and public intellectual property rights protection;
    JEL: D43 L11 L21 O25 O34
    Date: 2020–09
  2. By: Nancy Kong; Uwe Dulleck; Adam B. Jaffe; Shupeng Sun; Sowmya Vajjala
    Abstract: This paper proposes a novel approach to measure disclosure in patent applications using algorithms from computational linguistics. Borrowing methods from the literature on second language acquisition, we analyze core linguistic features of 40,949 U.S. applications in three patent categories related to nanotechnology, batteries, and electricity from 2000 to 2019. Relying on the expectation that universities have more incentives to disclose their inventions than corporations for either incentive reasons or for different source documents that patent attorneys can draw on, we confirm the relevance and usefulness of the linguistic measures by showing that university patents are more readable. Combining the multiple measures using principal component analysis, we find that the gap in disclosure is 0.4 SD, with a wider gap between top applicants. Our results do not change after accounting for the heterogeneity of inventions by controlling for cited-patent fixed effects. We also explore whether one pathway by which corporate patents become less readable is use of multiple examples to mask the “best mode” of inventions. By confirming that computational linguistic measures are useful indicators of readability of patents, we suggest that the disclosure function of patents can be explored empirically in a way that has not previously been feasible.
    JEL: O31 O34
    Date: 2020–09
  3. By: Bibek Ray Chaudhuri (Indian Institute of Foreign Trade,Kolkatta,India.); Sucharita Bhattacharyya (University of Calcutta, India.); Susmita Chatterjee (Maharaja Manindra Chandhra college, Kolkata , India.)
    Abstract: The Indian pharma industry are faced with challenges like slowing exports and rising costs. This has impacted their ability to capture a larger share of global pharmaceutical market. Sustaining the profitability and market share in this sector requires the ability on the part of the firms to obtain patents. Such activity involves huge investments in R&D and knowledge building. Hence it is of utmost importance to ascertain whether obtaining a patent enhance exports of pharma products especially since it is a significant revenue generator. The paper attempts to answer this question through a simultaneous equation approach. The results show that after controlling for the relevant variables impacting the export of pharma products, patents have a significant positive impact on pharma exports.
    Keywords: Exports, Empirical, Simultaneous Equation, Pharmaceutical.
    JEL: F14 C3 L65
    Date: 2019–01

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