Protection of Intellectual Property while Outsourcing
AbstractFood and Beverage companies need to share their Intellectual Property (IP) when they outsource production and/or R&D to contract agents. IP sharing can facilitate misappropriation and the contractor may eventually start competing with the client. We design an incentive compatible contract that can protect company IP. A two-pronged strategy is proposed: Companies should share less know-how and give high incentive payments to deter IP misappropriation. Strategies like product differentiation may be highly useful to deter piracy.
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Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania with number 103856.
Date of creation: May 2011
Date of revision:
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Intellectual Property Protection; Outsourcing; Product Differentiation; R&D; Agribusiness; Industrial Organization; Risk and Uncertainty; L14; L21; L23; L66; 031; 032; 034;
Find related papers by JEL classification:
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
- L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
- L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
- L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-05-24 (All new papers)
- NEP-CUL-2011-05-24 (Cultural Economics)
- NEP-INO-2011-05-24 (Innovation)
- NEP-IPR-2011-05-24 (Intellectual Property Rights)
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