Negotiations Over Intellectual Property Protection: A Strategic Bargaining Aspect

Ying-Yi Tsai, Luka Brkic and Edward McPhail
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Ying-Yi Tsai: Department of Applied Econimics, National University of Kaohsiung, Taiwan
Luka Brkic: University of Zagreb, Faculty of Political Science, Zagreb, Croatia
Edward McPhail: Department of Economics, Dickinson College, PA, USA

Zagreb International Review of Economics and Business, 2004, vol. 7, issue 2, 1-25

Abstract: This paper provides a bargaining aspect into the analysis of intellectual property protection across borders. We investigate the conditions under which a mutually accepted level of intellectual property enforcement can be agreed upon between two negotiating governments. We also explore the implications for optimal R&D of the varying degree of intellectual property protection. We find that intellectual property infringement need not always hamper an innovator’s investment choices; zero patenting across borders can be a mutually agreed level of protection in equilibrium; and the degree of ‘trust’ can have a significant impact on the negotiation outcome.

Keywords: intellectual property rights; strategic bargaining; innovation; imitation (search for similar items in EconPapers)
JEL-codes: C78 F13 (search for similar items in EconPapers)
Date: 2004
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