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The Economic Effects of Intellectual Property Right Infringements

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  • Feinberg, Robert M
  • Rousslang, Donald J

Abstract

In this article, the authors use data from a small, but varied, sample of U.S. companies to examine the static welfare consequences of foreign infringement of U.S. intellectual property rights in five industry sectors. They estimate that infringement causes profit losses for the legitimate U.S. suppliers that are at least one percent as great as their total sales, that the static gains to consumers are more than half as great as the losses of legitimate producers (and might exceed these losses), and that the losses of the legitimate producers exceed the profits of infringers. They also find that legitimate producers spend relatively little to combat foreign infringement--less than 4 percent as much as their losses from such infringement. Copyright 1990 by the University of Chicago.

Suggested Citation

  • Feinberg, Robert M & Rousslang, Donald J, 1990. "The Economic Effects of Intellectual Property Right Infringements," The Journal of Business, University of Chicago Press, vol. 63(1), pages 79-90, January.
  • Handle: RePEc:ucp:jnlbus:v:63:y:1990:i:1:p:79-90
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    Cited by:

    1. Grinols, Earl L. & Lin, Hwan C., 1997. "Asymmetric Intellectual Property Rights Protection and North-South Welfare," MPRA Paper 19542, University Library of Munich, Germany.
    2. Helpman, Elhanan, 1993. "Innovation, Imitation, and Intellectual Property Rights," Econometrica, Econometric Society, vol. 61(6), pages 1247-1280, November.
    3. Nill, Alexander & Shultz, Clifford II, 1996. "The scourge of global counterfeiting," Business Horizons, Elsevier, vol. 39(6), pages 37-42.
    4. Poddar, Amit & Foreman, Jeff & Banerjee, Syagnik (Sy) & Ellen, Pam Scholder, 2012. "Exploring the Robin Hood effect: Moral profiteering motives for purchasing counterfeit products," Journal of Business Research, Elsevier, vol. 65(10), pages 1500-1506.
    5. Goldsmith, Peter D. & Ramos, Gabriel & Steiger, Carlos, 2001. "Intellectual Property Protection And The International Marketing Of Agricultural Biotechnology: Firm And Host Country Impacts," 2001 Annual meeting, August 5-8, Chicago, IL 20672, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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