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Is there a case for non-discrimination in the international protection of intellectual property?

In: Economic Analysis of the Rules and Regulations of the World Trade Organization

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  • Difei Geng
  • Kamal Saggi

Abstract

We evaluate the case for non-discrimination in international patent protection. When trade is not subject to any frictions/barriers, requiring national treatment (NT) does not affect the rate of innovation (and welfare) since unfavorable discrimination suffered abroad by innovators in the absence of NT is fully offset by favorable discrimination enjoyed by them at home. When trade barriers exist, however, such international offsetting in patent protection is incomplete and innovation incentives are actually lower under NT. By lumping domestic and foreign patent protection together, NT blunts the overall effectiveness of patent protection in incentivizing innovation in the presence of trade barriers.

Suggested Citation

  • Difei Geng & Kamal Saggi, 2018. "Is there a case for non-discrimination in the international protection of intellectual property?," World Scientific Book Chapters, in: Kamal Saggi (ed.), Economic Analysis of the Rules and Regulations of the World Trade Organization, chapter 5, pages 109-123, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789813233058_0005
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    Cited by:

    1. Kyle Bagwell & Chad P. Bown & Robert W. Staiger, 2016. "Is the WTO Passé?," Journal of Economic Literature, American Economic Association, vol. 54(4), pages 1125-1231, December.
    2. Yang, Deli & Sonmez, Mahmut (Maho), 2018. "Global norm of national treatment for patent uncertainties: A longitudinal comparison between the US and China," Journal of World Business, Elsevier, vol. 53(2), pages 164-176.
    3. Mai, Joseph & Stoyanov, Andrey, 2019. "Anti-foreign bias in the court: Welfare explanation and evidence from Canadian intellectual property litigations," Journal of International Economics, Elsevier, vol. 117(C), pages 21-36.
    4. Lehmann-Hasemeyer, Sibylle H. & Streb, Jochen, 2018. "Discrimination against Foreigners. The Wuerttemberg Patent Law in Administrative Practice," Working Papers 7, German Research Foundation's Priority Programme 1859 "Experience and Expectation. Historical Foundations of Economic Behaviour", Humboldt University Berlin.
    5. Kamal Saggi, 2016. "Trade, Intellectual Property Rights, and the World Trade Organization," Vanderbilt University Department of Economics Working Papers 16-00014, Vanderbilt University Department of Economics.
    6. Geng, Difei & Saggi, Kamal, 2022. "Tariff barriers and the protection of intellectual property in the global economy," European Economic Review, Elsevier, vol. 144(C).
    7. Yang, Deli, 2019. "National treatment, institutions and IP uncertainties: An analytics of compliance, change and comparability," International Business Review, Elsevier, vol. 28(5), pages 1-1.
    8. Ding, Haoyuan & Fan, Haichao & Li, Chang & Qiu, Larry D., 2023. "The effects of discriminatory protections on cross-border mergers and acquisitions," Journal of Comparative Economics, Elsevier, vol. 51(2), pages 501-523.

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    More about this item

    Keywords

    Multilateral Trading System; Trade Agreements; Trade Liberalization; International Tariff Cooperation; WTO Disputes; Case Studies;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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