Lecture 9- why you can’t patent Timon.
James et al.
Property protection:
Formal: patents, trademarks, registered
Informal: complexity, secrecy, lead time.
Formal limits:
Cost of search
Registration and renewal.
Need to register in national markets.
Full & public disclosure of your idea
Need to be able to enforce.
Informal limits:
Cheap, but no protection.
Copyright: limited legal protection of certain material for a specific term:
Type of material
Protection
Infringement
Trademarks: distinctiveness, deceptiveness?
Contracts/confidentially agreement: Formally agree that they won’t tell: cheap, legal
protection, difficult to enforce.
Lead time: Capture the market first: See FMA
Imitability: Make sure you can’t be copied
Patens: provide a legal monopoly on IPR for a limited period.
Novel
Inventive step
Industrial application
Patentable subject
Not against order or morality
Discovery: concerns something that already exists at the time of discovery but was previously
unknown.
Invention: Concern something that was not previously there.
Reasons to patent:
Defensive: protecting future market space
Bargaining: become a more attractive collaboration partner
Why IPR? to protect innovators and give them the opportunity to gain benefits from it
stimulate firm to spend money on R&D and to innovate without IPR firms would spend a
lot of money on innovations and others could copy it at a much lower cost.
, Licensor Licensee
Earn back development cost and share risk Low cost at acquisition of know-what
Reach a larger market Access to know-what
Exploit in other applications Speed of market entry
Establish standards Overcome internal resource constraints
Block competing developments Reduce technological uncertainties
Convert competitor in defender
Not always first mover
Loss of monopoly Integration cost and effort
Fisher:
Direct network effects: Exist if the value of the product increases with the number of users.
Indirect network effects: The increasing of the number of users enhance the value of another
product.
James et al.
Property protection:
Formal: patents, trademarks, registered
Informal: complexity, secrecy, lead time.
Formal limits:
Cost of search
Registration and renewal.
Need to register in national markets.
Full & public disclosure of your idea
Need to be able to enforce.
Informal limits:
Cheap, but no protection.
Copyright: limited legal protection of certain material for a specific term:
Type of material
Protection
Infringement
Trademarks: distinctiveness, deceptiveness?
Contracts/confidentially agreement: Formally agree that they won’t tell: cheap, legal
protection, difficult to enforce.
Lead time: Capture the market first: See FMA
Imitability: Make sure you can’t be copied
Patens: provide a legal monopoly on IPR for a limited period.
Novel
Inventive step
Industrial application
Patentable subject
Not against order or morality
Discovery: concerns something that already exists at the time of discovery but was previously
unknown.
Invention: Concern something that was not previously there.
Reasons to patent:
Defensive: protecting future market space
Bargaining: become a more attractive collaboration partner
Why IPR? to protect innovators and give them the opportunity to gain benefits from it
stimulate firm to spend money on R&D and to innovate without IPR firms would spend a
lot of money on innovations and others could copy it at a much lower cost.
, Licensor Licensee
Earn back development cost and share risk Low cost at acquisition of know-what
Reach a larger market Access to know-what
Exploit in other applications Speed of market entry
Establish standards Overcome internal resource constraints
Block competing developments Reduce technological uncertainties
Convert competitor in defender
Not always first mover
Loss of monopoly Integration cost and effort
Fisher:
Direct network effects: Exist if the value of the product increases with the number of users.
Indirect network effects: The increasing of the number of users enhance the value of another
product.
