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Published in: Public Choice 1-2/2015

01-04-2015

Public choice perspectives on intellectual property

Authors: Eli Dourado, Alex Tabarrok

Published in: Public Choice | Issue 1-2/2015

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Abstract

We mine two public choice traditions for insights into intellectual property rights: the Virginia school, centered on James Buchanan and Gordon Tullock, and the Bloomington or Institutional Analysis and Development school, centered on Elinor Ostrom and Vincent Ostrom. We apply the perspectives of each school to issues of intellectual property and develop new insights, questions, and focuses of attention. We also explore tensions and synergies between the two schools on issues of intellectual property.

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Footnotes
1
The Founders’ Constitution, vol. 1, chap. 14, document 46, http://​press-pubs.​uchicago.​edu/​founders/​documents/​v1ch14s46.​html.
 
2
The Founders’ Constitution, vol. 1, chap. 14, document 47 (some spelling modernized), http://​press-pubs.​uchicago.​edu/​founders/​documents/​v1ch14s47.​html.
 
3
Senator Bernie Sanders has supported a Medical Innovation Prize Fund that would buy out patents (see Tabarrok 2011 for a discussion).
 
4
See Bell (2014) for a further discussion of Madison’s views on copyright.
 
5
Indeed, occasional private bills to extend copyright to specific works were made up until the late twentieth century (Patry 1994).
 
6
Amherst College Library, quoted on web at An Exhibit Commemorating the 250th Anniversary of Noah Webster’s Birth, https://​www.​amherst.​edu/​library/​archives/​exhibitions/​webster, last accessed June 4, 2013.
 
7
Stowe v. Thomas, 23 F. Cas. 201 (C.C.E.D. Pa. 1853) (No. 13,514).
 
8
The carving out of a fair use rule, initially done by the courts rather than by Congress, is one of the few exceptions to growing copyright strength. Even an expansive fair use standard, however, arguably benefits content creators as well as content consumers by increasing the exposure of the work.
 
9
See Patry (2011) for a book-length exposition.
 
10
Mark Twain is an exception that proves the rule. His sales were extensive and long lasting; he lobbied, mostly unsuccessfully, in favor of copyright extension. See Vaidhyanathan (2003).
 
11
See also Long (2008) on growing concentration in the music industry.
 
12
On the IPWatchdog blog, patent attorney Gene Quinn wrote in response to the Supreme Court’s ruling restricting patentable subject matter in Mayo v. Prometheus (2012), “How long will it take the Federal Circuit to overrule this inexplicable nonsense? The novice reader may find that question to be ignorant, since the Supreme Court is the highest court of the United States. Those well acquainted with the industry know that the Supreme Court is not the final word on patentability, and while the claims at issue in this particular case are unfortunately lost, the Federal Circuit will work to moderate (and eventually overturn) this embarrassing display by the Supreme Court.” (Quinn 2012).
 
13
Other recent Supreme Court rulings also overturn the patent-friendly rulings of the Federal Circuit. In Limelight v. Akamai (2014), for example, the Supreme Court made it more difficult for patent infringement cases against groups, holding that that the group cannot be said to infringe a patent if no single party within the group infringes. In Nautilus v. Biosig (2014), the Court made it easier to throw out vague patent claims.
 
14
Copyrights can create the same types of problems as patents. In the late 1980s, groups such as the Beastie Boys built songs on top of often hundreds of sound fragments sampled from other artists. After an injunction and recommendation for criminal prosecution for sampling was handed down in Grand Upright Music, Ltd v. Warner Bros. Records Inc., 780 F. Supp. 182 (S.D.N.Y. 1991), sampling became much less common. The rise of 3D printers, which can replicate artworks such as statues from a series of photographs, will provide another challenge to copyright law.
 
15
See also Bessen and Meurer (in press) who find that about 90 % of the companies sued by NPEs are small to medium-sized firms that may not be publicly listed and are therefore not included in the $83 billion figure.
 
18
One of Wikipedia’s written guidelines is “Do Not Bite the Newcomers.” http://​en.​wikipedia.​org/​wiki/​Wikipedia:​Please_​do_​not_​bite_​the_​newcomers, last modified Sept. 16, 2013.
 
19
It is common at IETF meetings for participants to signal support for a proposal through humming, which, because of the difficulty of humming very loudly, is a quick and low-cost way of gauging consensus. The IETF’s Working Group Guidelines and Procedures explicitly state, “Consensus can be determined by a show of hands, humming, or any other means on which the WG agrees (by rough consensus, of course).” http://​tools.​ietf.​org/​html/​rfc2418.
 
20
Authors Guild v. Google (2013) at 25.
 
21
See also Kelly v. Arriba Soft Corporation (2003) and Perfect 10, Inc. v. Amazon.com, Inc. (2007).
 
22
Authors Guild v. Google (2013) at 10.
 
23
In Healthcare Advocates Inc. v. Harding, Earley, Follmer & Frailey et al., 2007, the plaintiffs alleged that not respecting a robots.txt file was a violation of Section 1201(a) of the Digital Millennium Copyright Act: “No person shall circumvent a technological measure that effectively controls access to a work protected under this title.” Failing to respect the robots.txt file would therefore be a matter of potential civil and criminal liability. The court rejected the claim of circumvention on the specific facts of the case but did not rule on the larger issue.
 
24
In some industries, firms actively discourage their engineers from conducting patent searches because the value of any information is less than the cost of exposing the firm to charges of willful infringement, which exposes infringers to treble damages and attorney’s fees (Lemley 2008).
 
25
Google, “Patent Licensing to Encourage Innovation,” accessed November 13, 2013, http://​www.​google.​com/​patents/​licensing/​.
 
26
Google, “Royalty-Free Patent Licensing,” accessed November 13, 2013, http://​www.​google.​com/​patents/​licensing/​comparison/​.
 
27
See Mossoff (2011).
 
28
The Fair Access to Science and Technology Research Act (FASTR), introduced in 2013, would extend the NIH policy, with a shorter embargo, to other US federal agencies.
 
30
The practice of using trade law as a strategic threat to enforce IP law has continued after TRIPS. Under the Dominican Republic–Central America–United States Free Trade Agreement (CAFTA-DR), for example, signatory countries were required to strengthen their IP law even beyond WTO requirements.
 
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Metadata
Title
Public choice perspectives on intellectual property
Authors
Eli Dourado
Alex Tabarrok
Publication date
01-04-2015
Publisher
Springer US
Published in
Public Choice / Issue 1-2/2015
Print ISSN: 0048-5829
Electronic ISSN: 1573-7101
DOI
https://doi.org/10.1007/s11127-014-0195-x

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