© Copyright Frontier Economics
Clarifying the relationship betweenintellectual property rights andcompetition
Report prepared for submission to the Review of Intellectual Property & Competitionby Joshua Gans and Philip Williams and David Briggs
February 2000
© Copyright Frontier Economics
Table of ContentsSection Page
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rontier
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conomics
February 2000 i
1.
Introduction....................................................................................1
2.
Role of property rights......................................................................3
2.1.
Elements of a property rights system..........................................................3
2.2.
The value of property rights.........................................................................3
2.3.
Imperfections in the rights system for intellectual property......................5
2.3.1.
Difficulties in establishment................................................................5
2.3.2.
Difficulties in enforcement..................................................................5
2.3.3.
Difficulties in exchange........................................................................6
2.4.
Competition and pricing..............................................................................8
2.5.
Leverage of monopoly power...................................................................10
2.6.
Intellectual Property Rights and Vertical Integration.............................11
2.7.
Incentives to create....................................................................................12
2.8.
Property Rights and Monopoly Returns.................................................14
3.
Conclusions...................................................................................15
4.
References.....................................................................................16
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Joshua Gans, Philip Williams and David Briggs, "Clarifying the relationship between intellectual property rights and competition" Report prepared for submission to the Review of Intellectual Property & Competition, February 2000
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