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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

Author

Listed:
  • 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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    2. 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.
    3. 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.
    4. Difei Geng & Kamal Saggi, 2023. "Tariff barriers and the protection of intellectual property in the global economy," World Scientific Book Chapters, in: Kamal Saggi (ed.), Technology Transfer, Foreign Direct Investment, and the Protection of Intellectual Property in the Global Economy, chapter 27, pages 617-635, World Scientific Publishing Co. Pte. Ltd..
    5. 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.
    6. 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.
    7. Difei Geng, 2024. "Tariffs, product standards, and national treatment at the WTO," Economic Inquiry, Western Economic Association International, vol. 62(3), pages 1105-1133, July.
    8. 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.
    9. 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.
    10. 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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    JEL classification:

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

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