The course described here is for students at NYU Law School, spring 2008. Course materials for MBA students and upper division economics students can be found at http://socrates.berkeley.edu/~scotch/innovation/

 

Text:  Innovation and Incentives                 

The course considers intellectual property as an economic instrument that supports the creation of knowledge or creative works.  It embeds the discussion of IP in a broader historical and institutional context, recognizing that IP is only one of many instruments for rewarding authors and other creators. It stylizes intellectual property property through "levers" that all IP laws have in common, such as length and breadth, and levers where IP laws differ sharply, such as whether there is an independent invention defense.  We will discuss the special problems that arise when knowledge is "cumulative," and how the law has dealt with them. We will consider the problem of enforcement and remedies, and how technical protections are changing the business strategies purused by creators. We will take on the thorny intersection of IP law and competition law. Finally, we will consider how network effects change the discussion, and how IP serves as a trade-policy instrument in the global environment, as well as a reward to innovators. 

 

 

 

 

 

Date

Topic  

Required

Other reading and lectures.

If required, there is a star.

 

 

 

 

Preliminary

Reading

 

Institutions for Innovation: A Brief History

click above.

Ch 1

Review Questions

Zorina Khan, 2005.  The Democratization of Invention.  Cambridge Press.

Joel Mokyr, Gifts of Athena.  Princeton University Press, 2002.

Mowery and Rosenberg, 1998. Paths of InnovatonCambridge Univ Press

Jan 16,23

Investing in Knowledge

Ch 2

Review Questions

*Prizes for science (SF Chronicle)

*X Prizes

National Academies, 2007.  Innovation Inducement Prizes at the NSF

Jan 28

IP Law basics

as seen by an economist

Ch 3

Review Questions

 Landes and Posner: The Economic Structure of Intellectual Property Law

Ginsburg and Dreyfuss, 2006. Intellectual Property Stories.  NY: Foundation Press.

Patent Application on How to Make A Sandwich         Patent

* International Herald Tribune on Google's Belgian news wars  

Jan 30

Design of IP: length and breadth

Ch 4

Review Questions

* Economics amicus brief in Eldred Case

Feb 4

Design of IP: length and breadth 

 

 

* History of the Amazon One-Click Patent     *Patent

 

Feb 6,11,13

Cumulativeness in Research

Ch 5 

Review Questions

* Spitting Image (Inkjet Printer), Sept 19, 2001, The Economist

* Invention of Email, Pretext Magazine 1998.

 C. Townes.  1999.  How the Laser Happened.   Oxford Univ Press

* CCIA Study: Fair Use Economy Represents One-Sixth of U.S. GDP (MC)

* Myths and Realities of Neem-based Patents

Feb 18

Class rescheduled to Feb 20

 

 

Feb 20

3-hr class

Antitrust and Licensing

Ch 6

Review Questions

* Merges Contracting into Liability Rules

Merges Institutions for IP Transactions

Linux & Microsoft in cross-licensing agreement

Feb 25

Spillover class

 

 

Feb 27

 

Open Source as an Incentive Mechanism

 

*Maurer and Scotchmer Open Source Software: The New IP Paradigm.

B. Perens Emerging Economic Paradigm of Open Source (TJ)

Von Hippel, Democratizing Innovation, MIT Press 2005

* Maurer, Sali & Rai. 2004 Finding Cures for Tropical Diseases: Is Open Source the Answer? Public Library of Science: Medicine 1:56-58.

S. Maurer, "Choosing the Right Incentive Strategy for R&D in Neglected Diseases," World Health Organization Bulletin 84:376 (2006).

Lerner and Tirole, "The Economics of Technology Sharing: Open Source and Beyond" Paper 10956 (2004)

March 3

Midterm

 

 

March 5,10

March 12 

Enforcement through Litigation and Technical Protections

 Ch 7

Review Questions

* A Settlement by Vonage over Patents, New York Times, Oct 22, 2007

Menell & Nimmer Liability's Continuing Tort Framework and Sony's De Facto Demise  
 

March 24,26

The Public Sector

Ch. 8

Review Questions

"Invention of Email", Pretext Magazine 1998.

Nature July 15, 2004.  Scientific Impact of Nations.

*Future Imperfect (on Stem Cells, by Ian Hart)

*Gerth and Stolberg, "Drug Makers Reap Profits On Tax-Backed Research" New York Times Apr 23, 2000

Link, A. N. Public/Private Partnerships.  2005. Springer.

Nelson, Sampat, Ziedonis and Mowery, 2005. Ivory Tower and Industrial Innovation, Stanford University Press.

March 31

April 2,7

Network Effects

Ch 10 

Review Questions

 Metcalf's Law

 Samuelson: Questioning Copyrights in Standards

Compatibility Issues: Internet, Cellphones

Surowiecki, "In Praise of Third Place" (The modern game market)

April 9

April 16

Measurement issues

(April 14

is rescheduled to

April 21)

Ch 9

Review Questions

R. Easterlin. 1999. “Growth Triumphant.” Univ of Mich. Press.

P. David, "The Dynamo and the Computer: Historical Perspective on the Productivity Paradox." May 1990. 

Patent Power Harry Goldstein

 

April 21

3-hr class

A Pharma case

 

 PFIZER v. APOTEX

WSJ, Jan 2007.  Inside Abbott's Tactics to Protect AIDS Drug.

WSJ, Nov 2007.  Glaxo Sues Abbott.

April 21

Spillover 12:50-2:15

FH 210

 

 

April 21,23

Innovation in the global Economy

Ch 11

Review Questions

The Economist, "Scattering the Seeds of Invention: The Globalization of R&D" Sept 2004.

*Samuelson: Intellectual Property Arbitrage

April 28

spillover

 

 

 

 

 

News and Data Links 

Science 

New York Times Circuits

The Economist - science and technology news
NSF Science and Engineering Indicators

European Patent Office 

U.S. Patent and Trademark Office

 

   

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