Intellectual Property and the Markets of Ideas

Abstract

This paper attempts to systematise the law and economics theory as it relates to intellectual property rights, while at the same time suggesting new perspectives for analysis. The standard literature on IPRs relies essentially on the thesis of the incentive to create and/or disclose new ideas. However, although this argument doubtless remains valid in the general case, it fails to satisfactorily take into account various consequences arising from the new legal institutions and the specific technological context. One important such consequence is the dynamic effect of intellectual property rights on the market structure of the sectors involved, which can at times interfere with the original competitive processes, or even drastically alter them. An economic analysis based on these premises - though as yet fragmented and non systematic - might reveal a different overall balance of welfare for the individual rights and therefore lead to different regulatory and policy indications.

Keywords: Intellectual property, commons, copyright, patent, trade secret, trademark, incentive to create, incentive to disclose, knowledge production

JEL Classification: O31, O34, K11, L43