nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2022‒01‒31
three papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. Effect of Intellectual Property Rights Protection on Services Export Diversification By Gnangnon, Sèna Kimm
  2. No-Challenge Clauses in Patent Licensing - Blessing or Curse? By Buehler, Benno; Hunold, Matthias; Schlütter, Frank
  3. TRIPS to Where? A Narrative Review of the Empirical Literature on Intellectual Property Licensing Models to Promote Global Diffusion of Essential Medicines By Shiri Mermelstein; Hilde Stevens

  1. By: Gnangnon, Sèna Kimm
    Abstract: The effect of the betterment of enforced intellectual property rights (IPRs) provisions on services export concentration has been investigated. The analysis has used a panel dataset of 103 countries (both developed and developing countries) over the period of 1985-2014. It has revealed that countries with low levels of enforced IPRs tend to concentrate their services exports on few items, while countries with a high degree of enforced IPRs experience a greater level of services export diversification. Furthermore, the betterment of IPRs protection influences positively services export diversification, and the magnitude of this positive effect is higher for advanced countries compared to relatively less advanced economies. These results are particularly relevant for developing countries, including the least-developed countries that have both weakly enforced IPRs and high levels of services export concentration.
    Keywords: Intellectual property rights,Services export concentration
    JEL: E31 F13 O34
    Date: 2022
  2. By: Buehler, Benno; Hunold, Matthias; Schlütter, Frank (Université catholique de Louvain, LIDAM/CORE, Belgium)
    Abstract: We analyze the effects of no-challenge clauses that prevent licensees from challenging the validity of patents. Contrary to popular arguments, we show that banning these clauses does not necessarily improve the frequency of successful patent challenges. Depending on the patent strength, patent holders may profitably offer license contracts that incentivize licensees to not challenge the patent. Even worse, such a strategy can lead to higher running royalties and lower consumer surplus compared to contracts with no-challenge clauses. We demonstrate that measures that aim at improving the prospects of patent challenges, such as prohibiting termination-upon-challenge clauses, can cause additional detrimental effects.
    Keywords: No-challenge clause ; probabilistic patents ; license contracts
    JEL: K11 K41 L24 L42
    Date: 2021–12–03
  3. By: Shiri Mermelstein; Hilde Stevens
    Abstract: Governed through the World Trade Organization Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) since 1995, the current medical R&D system requires significant trade-offs between innovation and high monopoly prices for patented drugs that restrict patient access to medicines. Since its implementation, few amendments have been made to the original TRIPS agreement to allow low- and middle-income countries (LMICs) to facilitate access by generic manufacturers through flexible provisions, such as compulsory licensing and parallel import. Although a useful policy tool in theory, the routine use of TRIPS flexibilities in LMICs in the procurement of new essential medicines (EMs) is regarded as a ‘last resort’ due to strong political response in high-income countries (HICs) and new trade agreements’ restrictions. In this context, access-oriented biomedical Public-Private Partnerships (PPPs) have emerged. More recently, leading multilateral health organizations have recommended different types of intellectual property (IP) interventions, voluntary biomedical patent pools, as strategies to reduce prices and increase the diffusion of novel EMs in LMICs. Nevertheless, the recent Ebola and COVID-19 outbreaks highlight growing concerns regarding the use of TRIPS flexibilities and the limited success of voluntary mechanisms in promoting access to medicines in the Global South amidst health crises. This review aims at describing the state-of-the-art empirical research on IP-related options and voluntary mechanisms applied by emerging PPPs to guarantee timely and affordable access to EM in LMICs and reflect on both models as access paradigms. Some suggestions are put forward for future research paths on the basis of these analyses and in response to contemporary debates on waiving key IP rights on COVID-19 therapies, diagnostics, and vaccines.
    Date: 2022–01

This nep-ipr issue is ©2022 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.