nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2022‒02‒28
three papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. Optimal patent licensing: from three to two part tariffs By Ma, Siyu; Sen, Debapriya; Tauman, Yair
  2. Omnia Juncta in Uno: Foreign Powers and Trademark Protection in Shanghai's Concession Era By Laura Alfaro; Cathy Ge Bao; Maggie X. Chen; Junjie Hong; Claudia Steinwender
  3. “OUR” brands, “THEIR” products: How do consumers react to religious brands offers? By Nawel Fellah-Dehiri; Géraldine Michel

  1. By: Ma, Siyu; Sen, Debapriya; Tauman, Yair
    Abstract: We consider the licensing of a cost-reducing innovation in a Cournot oligopoly where an outside innovator uses three part tariffs that are combinations of upfront fees, per unit royalties and ad valorem royalties. The key insight of our analysis is per unit royalties have a location effect and ad valorem royalties have a scale effect on marginal costs. Using these two effects, we show that the same market outcome (price, quantities, operating profits) can be sustained by multiple combinations of per unit and ad valorem royalties. In the monopoly case, under three part tariffs it is optimal to set a pure upfront fee while the unique optimal two part royalty is a pure ad valorem royalty. In the case of a general oligopoly with linear demand, for relatively insignificant innovations, it is optimal to set a pure upfront fee; otherwise there is a continuum of optimal policies and there always exists an optimal policy consisting of a positive per unit royalty and upfront fee but no ad valorem royalty. For intermediate innovations, provided the demand intercept is relatively large, there exists an optimal policy that has both kinds of royalties but no fees. Finally in a Cournot duopoly it is illustrated that when the innovator is one of the incumbent firms rather than an outsider, market outcomes separately depend on two kinds of royalties and a pure ad valorem royalty is optimal among all three part tariffs.
    Keywords: patent licensing; per unit royalties; ad valorem royalties; three part tariffs; acceptability and feasibility constraints
    JEL: D43 D45 L13 L14
    Date: 2022–01–21
  2. By: Laura Alfaro; Cathy Ge Bao; Maggie X. Chen; Junjie Hong; Claudia Steinwender
    Abstract: We investigate how firms adapt to trademark protection, an extensively used but underexamined form of IP protection, by exploring a historical precedent: China's trademark law of 1923---an unanticipated and disapproved response to end foreign privileges in China. By exploiting a unique, newly digitized firm-employee-level dataset from Shanghai in 1872-1941, we show that the trademark law shaped firm dynamics on all sides of trademark conflicts. The law spurred growth and brand investment among Western firms with greater dependence on trademark protection. In contrast, Japanese businesses, which had frequently been accused of counterfeiting, experienced contractions while attempting to build their own brands after the law. The trademark law also led to new linkages with domestic agents, both within and outside the boundaries of Western firms, and the growth of Chinese intermediaries. At the aggregate level, trademark-intensive industries witnessed a net growth in employment and the number of product categories. A comparison with previous attempts by foreign powers---such as extraterritorial rights, bilateral treaties, and an unenforced trademark code---shows that those alternative institutions were ultimately unsuccessful.
    JEL: D2 F2 N4 O1 O3
    Date: 2022–02
  3. By: Nawel Fellah-Dehiri (IAE Paris - Sorbonne Business School); Géraldine Michel (IAE Paris - Sorbonne Business School)
    Abstract: Contemporary societies are characterized by the coexistence of different cultures and more and more mainstream brands are launching religious products. In the particular context of the religious Muslim market, the aim of this research is a better understanding of how non-Muslims consumers react to brands Muslims products in the religious market. To meet this objective, we mobilize social identity theory which allow us to study the attitude between in-groups and out-groups. Our study is based on eighteen semi-structured interviews with non-Muslim consumers and an analysis of 1284 online comments. Our results highlight different reactions from the in-group (non-Muslims) which seem to be linked both to the brand attachment, to the religious offer consistency with the individual's values and to the brand's country image.
    Abstract: Les sociétés contemporaines se caractérisent par la coexistence de cultures différentes et de plus en plus de marques généralistes se lancent dans l'offre de produits religieux. Dans le contexte particulier du marché religieux musulman, l'objectif de cette recherche est de mieux comprendre comment les consommateurs non-musulmans réagissent face aux marques qui commercialisent des produits religieux musulmans. Pour répondre à cet objectif, nous mobilisons la théorie de l'identité sociale permettant d'étudier l'attitude entre l'endogroupe et l'exogroupe.
    Date: 2021–05–19

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