Choosing the scope of trade secret law when secrets complement patents
AbstractWe present a model where an incumbent firm has a proprietary product whose technology consists of at least two components, one of which is patented while the other is kept secret. At the patent expiration date, an entrant firm will enter the market on the same technological footing as the incumbent if it is successful in duplicating, at certain costs, the secret component of the incumbent's technology. Otherwise, it will enter the market with a production cost disadvantage. We show that under some conditions a broad scope of trade secret law is socially beneficial.
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Bibliographic InfoArticle provided by Elsevier in its journal International Review of Law and Economics.
Volume (Year): 31 (2011)
Issue (Month): 4 ()
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Web page: http://www.elsevier.com/locate/irle
Knowledge spillovers; Duplication costs; Non-competition covenants; Inevitable disclosure;
Other versions of this item:
- Ottoz, Elisabetta & Cugno, Franco, 2010. "Choosing the scope of trade secret law when secrets complement patents," MPRA Paper 20672, University Library of Munich, Germany.
- Ottoz Elisabetta & Cugno Franco, 2009. "Choosing the Scope of Trade Secret Law when Secrets Complement Patents," Department of Economics and Statistics Cognetti de Martiis. Working Papers 200911, University of Turin.
- K2 - Law and Economics - - Regulation and Business Law
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property Rights
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