More Secrecy...More Knowledge Disclosure? On Disclosure Outside of Patents
AbstractIt is an important concern that innovators by waiving their patent rights might obstruct the disclosure of knowledge and therefore retard progress. This paper explores this concern by using a simple model of two innovators who must decide sequentially whether to protect an innovation with limited patent rights. Two features are crucial to the disclosure decision. First: the second inventor may use his valid patent right to exclude the first inventor from using a secret invention. Second: when waiving her patent right, the first inventor may disclose her knowledge outside of a patent. Disclosure informs the Patent Office and courts that related inventions from later inventors may lack novelty and hence should not be protected by valid patent rights. This paper shows that when the first inventor chooses not to patent the innovation, the amount of disclosure is related to the intellectual property choices in a paradoxical way: the amount of disclosure will be âlargeâ (âsmallâ) when the second inventor chooses secrecy (patenting) to protect the innovation too.
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Date of creation: 15 Oct 2007
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Other versions of this item:
- Carlos J. POnce, 2007. "More secrecy... more knowledge disclosure? : On disclosure outside of patents," Economics Working Papers we077241, Universidad Carlos III, Departamento de Economía.
- NEP-ALL-2007-10-20 (All new papers)
- NEP-INO-2007-10-20 (Innovation)
- NEP-IPR-2007-10-20 (Intellectual Property Rights)
- NEP-KNM-2007-10-20 (Knowledge Management & Knowledge Economy)
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