The Role of Intellectual Property Rights in Information and Communication Technologies
AbstractThe paper starts by recapitulating the basic arguments provided by economic theory to explain the existence of the patent system. The paper then concentrates on the three important ICT industries viz., telecommunication equipment, computer hardware and semiconductor industries. The issues covered in the discussion on these industries are the technological characteristics; market structure and technology transfer experiences of selected developing countries. Even though there are some differences in these industries, what come out clearly are some similarities. These similarities pertain to concentration by firm as well as country; rapid technological changes; existence of scale economies; rising minimum efficient levels of production; entry barriers to the industries both financial and technological etc. Bresnahan, Stern and Trajtenbert  show that in the computer PC market brand name and being on technological frontier help the firm in appropriating inventions. Taylor and Silberston  observe that in electronics while patents by themselves are not important method of appropriation, it encourages firms to accumulate patents so that they can have an advantage in cross-licensing agreements. This finding was reiterated by Hall and Ham  for semiconductor industry. They name this phenomenon patent portfolio race. The paper briefly touches upon the issues pertaining to Internet and the problems it raises for copyright; protection of computer software and the discussion on a sui generis protection for databases. The paper concludes that the role of IPRs in ICT seems to be marginal and as prices are falling it does not seem to be attracting negative attention.
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Bibliographic InfoPaper provided by East Asian Bureau of Economic Research in its series Microeconomics Working Papers with number 22406.
Date of creation: Jan 2004
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intellectual property rights; Patents; information and communication technologies.;
Find related papers by JEL classification:
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
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"Technological Competition and the Structure of the Computer Industry,"
Journal of Industrial Economics,
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- Timothy F. Bresnahan & Shane Greenstein, 1997. "Technological Competition and the Structure of the Computer Industry," Working Papers 97028, Stanford University, Department of Economics.
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- Megna, Pamela & Klock, Mark, 1993. "The Impact on Intangible Capital on Tobin's q in the Semiconductor Industry," American Economic Review, American Economic Association, vol. 83(2), pages 265-69, May.
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