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Protection of Intellectual Property while Outsourcing

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  • Sen Gupta, Rajorshi
  • Love, H. Alan

Abstract

Food 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 Info

Paper provided by Agricultural and Applied Economics Association in its series 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania with number 103856.

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Date of creation: May 2011
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Handle: RePEc:ags:aaea11:103856

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Keywords: Intellectual Property Protection; Outsourcing; Product Differentiation; R&D; Agribusiness; Industrial Organization; Risk and Uncertainty; L14; L21; L23; L66; 031; 032; 034;

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