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    Add as FriendNature and role of intellectual property

    by: Rogers

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    1 : Nature and role of intellectual property Lecture outline: Introduction to the topic Why are Intellectual Property Rights awarded? Main types of intellectual property Patents Trade marks Designs and utility models Copyright Alternatives to IPRs Questions for discussion
    2 : Introduction Range of issues can be discussed, including Historical development Recent controversies (see Chapter 11 and/or) http://www.scienceprogress.org/2009/01/patent-reform-101/ http://www.law.duke.edu/boylesite/ip.htm http://en.wikipedia.org/wiki/File_sharing http://www.wto.org/english/tratop_E/TRIPS_e/trips_e.htm
    3 : Why are patents awarded? Incentive to invest in innovation Note: invention may occur without monetary incentives (due to human curiosity), but an innovation requires investment Patents balance the need to provide incentives with the introduction of market failure (i.e. high prices of non-rival good) Have patent protection for up to 20 years, then knowledge/innovation can be exploited by all
    4 : Illustrating the role of patents Figure 2.1 shows a drastic process innovation Patent owner now has monopoly (sets high price compared to marginal cost, and restricts quantity) BUT, price is lower than previous price (pre-innovation), hence society wants innovation. Society would also like lower prices (P=MC), and this happens when patent protection expires (normally after 20 years) Note: the above logic applies for all product and process innovation, but easy to illustrate with drastic process innovation
    5 : Figure 2.1 A drastic process innovation
    6 : Patents What can be patented? How to get a patent? Dimensions of patent Markets for patent rights Who uses patents most? (Above are sub-headings in Chapter 2 and summary of material can be found there) May also want to illustrate some famous patents and/or specifics of own country (see below for sources)
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    8 : Further information on patents US: http://www.uspto.gov http://www.uspto.gov/web/offices/ac/ahrpa/opa/kids/kidevents_press.html UK: http://www.ipo.gov.uk http://www.ipo.gov.uk/types/patent/p-about/p-funandgames/p-map.htm European Patent Office: http://www.epo.org/ http://www.epo.org/topics/ip-webguide.html World IP Office: http://www.wipo.int Patent scoreboards (national offices and also http://bwnt.businessweek.com/interactive_reports/most_innovative/ There are many on-line resources, including free patent searches (e.g. http://www.patents.com/)
    9 : Trademarks What can be registered? How is a trademark obtained? Length, breath and geographical coverage Markets for trademarks Who uses trademarks most? (Above are sub-headings in Chapter 2) Further information can be found at national IP office web-sites. Note also that ‘brands’ are worlds most successful trademarks (see : http://www.interbrand.com/best_global_brands.aspx or BrandFinance)
    10 : Top trademarkers in the US and Europe
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    12 : Other IPRs Designs and utility models - Section 2.5 discusses these - Next table illustrates use of designs Copyright (see section 2.6) Copyright, and specifically the file sharing issue, may be a key issue for students Hence, could be that copyright issues is developed in separate lecture and/or as an assignment (some readings for students at end of lecture outline)
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    14 : Further questions about IPRs Is patenting always the best route to protection? Secrecy vs. disclosure. Trade secrecy law Optimal patent length Box 2.1 uses some formal analysis. This can be extended and/or used for maths-based problem. See references in box. Alternatives to IPRs? This is only briefly covered in Ch. 2, but extended in Ch. 11. Should alert students to this issue. Could use as on-going assignment through course.
    15 : Questions for discussion How does intellectual property differ from tangible property, such as a house or a car? Do patents provide socially optimal incentives? Why do firms use trademarks? Should copyright be made shorter or longer than at present? Why do different industries make use of different types of rights? What factors influence the optimal length of an intellectual property right?
    16 : References General: Landes, W. M. and R. A. Posner (2003), The economic structure of intellectual property law, Boston: Belknap/Harvard University Press. HM Treasury (2006), Gowers Review of Intellectual Property, Norwich: The Stationery Office. Lerner, J. (2002). "150 Years of Patent Protection." American Economic Review 92(2): 221-25. Hall, B. (2007). "Patents and Patent Policy." Oxford Review of Economic Policy 23(4): 568-587. Copyright: Corrigan, R. and Rogers, M. (2005), ‘The economics of copyright’, World Economics: The Journal of Current Economic Analysis and Policy, 6(3), 53-174. Lessig, L. (2004). Free Culture: How Big Media Uses Technology and the Law to Lock Down Culture and Control Creativity. London, Penguin Press. Boyle, J. (2003). "The Second Enclosure Movement and the Construction of the Public Domain " Law and Contemporary Problems 66(Winter-Spring): 33-74.

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