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The case for non-discrimination in the international protection of intellectual property

Author

Listed:
  • Difei Geng

    (Vanderbilt University)

  • Kamal Saggi

    (Vanderbilt University)

Abstract

We evaluate the case for non-discrimination in the international protection of intellectual property. If trade is not subject to any frictions then requiring national treatment (NT) in patent protection does not have any consequences for innovation (and welfare) since unfavorable discrimination abroad is fully offset by favorable discrimination at home. In the presence of trade frictions, however, such international offsetting in patent protection is incomplete and innovation incentives are actually lower under NT. The formation of a free trade agreement increases the effective global protection available to members without affecting the protection available to the non-member.

Suggested Citation

  • Difei Geng & Kamal Saggi, 2013. "The case for non-discrimination in the international protection of intellectual property," Vanderbilt University Department of Economics Working Papers 13-00017, Vanderbilt University Department of Economics.
    • Handle: RePEc:van:wpaper:vuecon-sub-13-00017
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    References listed on IDEAS

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    1. Kamal Saggi & Nese Sara, 2018. "National Treatment At The Wto: The Roles Of Product And Country Heterogeneity," World Scientific Book Chapters, in: Kamal Saggi (ed.), Economic Analysis of the Rules and Regulations of the World Trade Organization, chapter 3, pages 46-75, World Scientific Publishing Co. Pte. Ltd..
    2. Lai, Edwin L.-C. & Yan, Isabel K.M., 2013. "Would global patent protection be too weak without international coordination?," Journal of International Economics, Elsevier, vol. 89(1), pages 42-54.
    3. Suzanne Scotchmer, 2004. "The Political Economy of Intellectual Property Treaties," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 20(2), pages 415-437, October.
    4. Maskus, Keith E. & Penubarti, Mohan, 1995. "How trade-related are intellectual property rights?," Journal of International Economics, Elsevier, vol. 39(3-4), pages 227-248, November.
    5. Ralph Ossa, 2011. "A "New Trade" Theory of GATT/WTO Negotiations," Journal of Political Economy, University of Chicago Press, vol. 119(1), pages 122-152.
    6. Henrik Horn & Giovanni Maggi & Robert W. Staiger, 2010. "Trade Agreements as Endogenously Incomplete Contracts," American Economic Review, American Economic Association, vol. 100(1), pages 394-419, March.
    7. Francisco L. Rivera-Batiz & Luis A. Rivera-Batiz, 2018. "Economic Integration and Endogenous Growth," World Scientific Book Chapters, in: Francisco L Rivera-Batiz & Luis A Rivera-Batiz (ed.), International Trade, Capital Flows and Economic Development, chapter 1, pages 3-32, World Scientific Publishing Co. Pte. Ltd..
    8. Henrik Horn, 2006. "National Treatment in the GATT," American Economic Review, American Economic Association, vol. 96(1), pages 394-404, March.
    9. Keith E. Maskus, 2000. "Intellectual Property Rights in the Global Economy," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 99, April.
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    Citations

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    Cited by:

    1. Kyle Bagwell & Chad P. Bown & Robert W. Staiger, 2016. "Is the WTO Passé?," Journal of Economic Literature, American Economic Association, vol. 54(4), pages 1125-1231, December.
    2. Joseph Mai & Andrey Stoyanov, 2014. "Home Country Bias in the Legal System: Empirical Evidence from the Intellectual Property Rights Protection in Canada," Working Papers 2014_3, York University, Department of Economics.
    3. Staiger, Robert & Bagwell, Kyle & Bown, Chad, 2015. "Is the WTO Passé?," CEPR Discussion Papers 10672, C.E.P.R. Discussion Papers.

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    More about this item

    Keywords

    Intellectual property rights; patent protection; non-discrimination; national treatment; trade barriers;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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