Optimal Patentability Requirements with Fragmented Property Rights

52 Pages Posted: 16 Nov 2010

See all articles by Vincenzo Denicolò

Vincenzo Denicolò

University of Bologna

Christine Halmenschlager

University of Paris II Pantheon-Assas - ERMES

Date Written: November 16, 2010

Abstract

We study the effect of the fragmentation of intellectual property rights on optimal patent design. The major finding is that when several complementary innovative components must be assembled to operate a new technology, the patentability requirements should be stronger than in the case of stand-alone innovation. This reduces the fragmentation of intellectual property, which is socially costly. However, to preserve the incentives to innovate, if a patent is granted the strength of protection should be generally higher than in the stand-alone case.

Keywords: Intellectual Property Rights, Fragmentation, Patent Requirements

JEL Classification: O3, O34

Suggested Citation

Denicolo, Vincenzo and Halmenschlager, Christine, Optimal Patentability Requirements with Fragmented Property Rights (November 16, 2010). FEEM Working Paper No. 134.2010. Available at SSRN: https://ssrn.com/abstract=1709910 or http://dx.doi.org/10.2139/ssrn.1709910

Vincenzo Denicolo (Contact Author)

University of Bologna ( email )

Strada Maggiore 45
Bologna, 40125
Italy

Christine Halmenschlager

University of Paris II Pantheon-Assas - ERMES ( email )

12 Place du Panthéon
Paris, Cedex 5, 75005
France

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