23 Pages Posted: 12 Dec 2015 Last revised: 8 Oct 2016
Date Written: October 6, 2016
Patents and trademarks are a right to exclude others from using a brand or an invention, but are distinct from the underlying brand or invention itself. This paper presents a theoretical framework for evaluating the value of the right to exclude as a proportion of the overall value of a good. Valuations are context-dependent: the value of patent and trademark protection, in absolute terms and as a proportion of overall product value, is lower for intangibles that are components of complex products. As the complexity of production increases, the relative value of the right to exclude approaches zero.
Keywords: patents, complex inventions
JEL Classification: O34, D42
Suggested Citation: Suggested Citation