Protection of Intellectual Property while Outsourcing

Rajorshi Sen Gupta and H. Love

No 103856, 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania from Agricultural and Applied Economics Association

Abstract: Food and Beverage companies need to share their Intellectual Property (IP) when they outsource production and/or R&D to contract agents. IP sharing can facilitate misappropriation and the contractor may eventually start competing with the client. We design an incentive compatible contract that can protect company IP. A two-pronged strategy is proposed: Companies should share less know-how and give high incentive payments to deter IP misappropriation. Strategies like product differentiation may be highly useful to deter piracy.

Keywords: Agribusiness; Industrial Organization; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 2
Date: 2011-05
New Economics Papers: this item is included in nep-cul, nep-ino, nep-ipr and nep-pr~
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea11:103856

DOI: 10.22004/ag.econ.103856

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