Econ 483_Lecture 12_Optimal IP protection

Intro length breadth optimal policy breadth as a

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Unformatted text preview: i c A ll rights reserved. Intro Length Breadth Optimal policy Breadth as a policy lever ) How di¤erent must another product be in order not to infringe the patent? The legal notion arises from the claims of patent & the doctrine of equivalents. Lecture 12: Optimal design of IP, Econ483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. Intro Length Breadth Optimal policy Breadth as a policy lever Economically: ) If there is horizontal competition, the property right is more pro…table if the right holder can exclude substitutes from the market. The size of the market for the patented product depends on the closeness of noninfringing substitutes. Under narrow patents, no patentee can charge a high price since consumers will ‡ee to another vendor (even if goods slightly di¤er). Competition will keep the price down. Lecture 12: Optimal design of IP, Econ483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. Intro Length Breadth Optimal policy Example: Harvard oncomouse a fertilized mouse egg with genetic material associated with cancer A patent could claim the process of transforming the fertilized egg, or the speci…c mouse line itself ) narrow patent Though, the researchers’issued a patent that claims all "transgenic non-human mammals" created using their method ) broad patent The creation of a transgenic walrus or the oncowalrus (to st...
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This note was uploaded on 03/16/2014 for the course ECON 483 taught by Professor Staff during the Spring '08 term at University of Illinois, Urbana Champaign.

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