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Quint - Patent Pools Econ 522Economics of Law Monday… Our experiment… Our experiment… Our experiment… Conclusion Discussion question Intellectual Property Information: costly to generate, easy to imitate Information: costly to generate,easy to imitate Patents: one way to solvethe problem Comparing the two outcomes Patents solve one inefficiencyby introducing another Patents: a bit of history Patent breadth Patent breadth Patent length Do the details matter? Do the details matter? Do the details matter? Alternatives to patents for encouraging innovation Copyright Copyright Copyright Copyright Trademarks Trademarks – example Trademark dilution Trade Secrets patents copyrights trademarks trade secrets Protection against misappropriation But plaintiff must show… Valid trade secret Acquired illegally Reasonable steps taken to protect it patents copyrights trademarks trade secrets Copyrights are property rights over “original expressions” – writing, music, or other artistic creations Creations like this tend to fit the definition of a public good nonrivalrous – one more person reading a book, or listening to a song, or using a piece of software, doesn’t impose any costs on the creator or on other users nonexcludable – this isn’t quite as literally true; but technology has made it very cheap, often free, to copy and share music or software, so in some instances it’s very difficult to prevent people from accessing it (This has become more dramatically true in the last decade – once something is available digitally, it’s very hard to limit access to it.) So it is natural to think of creations like these in terms of public goods As with any public good, if they are privately supplied, we would expect them to be undersupplied That is, without any specific sort of reward system, creators could not capture the full social benefit of their creations, and so the free market would likely produce an inefficiently low level of “original expressions.” However, there are sev