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Showing posts with the label intellectual property rights

Decision Making as Output and Bounded Rationality

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  The classical economics theories proceed on the assumption of rational agents. Rationality implies the economic agents undertake actions or exercise choices based on the cost-benefit analysis they undertake. The assumption further posits that there exists no information asymmetry and thus the agent is aware of all the costs and benefits associated with the choice he or she has exercised. The behavioral school contested the decision stating the decisions in practice are often irrational. Implied there is a continuous departure from rationality. Rationality in the views of the behavioral school is more an exception to the norm rather a rule. The past posts have discussed the limitations of this view by the behavioral school. Economics has often posited rationality in the context in which the choices are exercised rather than theoretical abstract view of rational action. Rational action in theory seems to be grounded in zero restraint situation yet in practice, there are numerous restra
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Copyright Day, Enforcement , and Demising Returns

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  April 23 is celebrated as the World Book and Copyright Day. It marks the commemoration of the birthday of William Shakespeare. It is moot whether the Bard of Avon was born on this day, but nevertheless, there is a celebration and this is associated with the books and the ideas behind those expressions in the books. Books are expression of an idea that is sought to be conveyed by the author. The idea needs protection since anyone else can steal the idea. Yet ideas can arise independently to many of them. The way they might express would be different. For instance if someone were to express an idea through a book, somebody might convey the same idea through a movie or they might be a musical composition seeking to project the same idea. A story might be told to the audience, yet when asked to write down the story or orally retell the story, each member of the audience might convey in different style and form. Therefore, while the underlying might be the same, the way in it is expressed
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Intellectual Property Differentials Across Industries

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  The debate on intellectual property rights (IPRs) at the global level seems to rest primarily on a single size fits all model. The US driven agenda to enforce stricter norms for IP across countries is ostensibly an attempt to push the US agenda. Now that the incoming US administration led by President Biden is likely to revive TPP, it is possible that IP issues might come to the fore yet again. However, while examining the empirical realities, the IP practices vary from industry to industry. Rarely there exists an industry which has an uniform IP practice relative to other industries. It must beg to be explained why the differentials in IP exists across industries. In an earlier paper, one had discussed at certain length on how IP differentials could be linked to interplay between costs and utility. In economics, firms strive for profit maximization while consumers seek maximization of utility. The interplay between the two can be analysed through an examination of the firm’s cost
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Economics Applications- Examples from Intellectual Property Rights

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  Many past posts have discussed the applications of economics concepts and principles in different facets of life. It has been argued often that the applications are perhaps sub conscious but nevertheless can be theorized. There are often applications that can be theorised through economic thinking while rationalising those actions. The current post will seek to delve into the intellectual property rights (IPRs) and how their application gets rooted in economics. While IPRs need an engagement at depth, the current post will limit to a few examples that highlight the economics at work.   Ever-greening of patents In 2014, the Supreme Court of India invalidated the patent on Gilvea, the anti-cancer drug developed and marketed by Novartis. The patent on the drug had expired in 2006 but the pharma giant wanted to extend the patent. It had made use of the application of the concept of ever-greening. Patents are an outcome of a trade-off between short term and long term prospective rew
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