Digital Commons Network^™

Race Cartels: How Constructor Collaboration Is Curbing Innovation In Formula 1, Chandler C. Gerard-Reimer

Vanderbilt Journal of Entertainment & Technology Law

Formula 1 is in the midst of a copycat scandal: technology has made it possible for teams to reverse engineer clones of competitors’ race cars. This is a less than ideal state of affairs for the championship series, which prides itself on being the pinnacle of motorsport and automotive innovation, thanks in large part to the cars’ rapid rate of technological advancement. In order to address this problem, the Fédération Internationale de l’Automobile (FIA), Formula 1’s governing body, must increase independent innovation efforts by amending the technical regulations to restrict the extent of presently allowed inter-team collaboration. Worried that the …

Patenting The Unexplained, Sean B. Seymore

Vanderbilt Law School Faculty Publications

It is a bedrock principle of patent law that an inventor need not understand how or why an invention works. The patent statute simply requires that the inventor explain how to make and use the invention. But explaining how to make and use something without understanding how or why it works yields patents with uninformative disclosures. Their teaching function is limited; one who wants to understand or figure out the underlying scientific principles must turn elsewhere. This limited disclosure rule does not align with the norms of science and tends to make patent documents a less robust form of technical …

Revisiting The Public Utility, Jim Rossi, Morgan Ricks

Vanderbilt Law School Faculty Publications

This foreword introduces "Revisiting the Public Utility," a series of essays published in a special issue of Yale Journal on Regulation. We cluster the contributions to this issue around public utility regulation’s core rationales and its scope, its implications for innovation and industry stability, and its evolving approach to price regulation. The scholarship represented in this issue challenges the notion that public utility ideas are obsolete or irrelevant to modern issues in economic regulation. It questions whether public utility regulation has fallen short of its goals, and shows that there are some good reasons to question many embedded regulatory practices. …

The Lost Precedent Of The Reverse Doctrine Of Equivalents, Samuel F. Ernst

Vanderbilt Journal of Entertainment & Technology Law

Proponents of legislative patent reform argue that the current patent system perversely impedes true innovation in the name of protecting a vast web of patented inventions, the majority of which are never even commercialized for the benefit of the public. Opponents of such legislation argue that comprehensive, prospective patent reform legislation would harm the incentive to innovate more than it would curb the vexatious practices of non-practicing entities. But while the" Innovation Act" wallows in Congress, there is a common law tool to protect innovation from the patent thicket lying right under our noses: the reverse doctrine of equivalents. Properly …

The Likely Mismatch Between Federal Research & Development Funding And Desired Innovation, Joshua D. Sarnoff

Vanderbilt Journal of Entertainment & Technology Law

Scholars are beginning to develop theoretical analyses of the different forms of government funding that promote innovation. These analyses indicate the need for extensive empirical research into the comparative advantages and various abilities of differing governmental and private institutions. Currently, empirical analyses are lacking, as data for such studies is rarely obtained. Worse yet, analyses of the ways funding decisions are actually made indicate that research and development funding decisions are not governed by a theory of comparative innovation advantage. Accordingly, we can expect a substantial mismatch between actual funding choices and desired innovation policy.

This Article identifies practical considerations …

Foresight Bias In Patent Law, Sean B. Seymore

Vanderbilt Law School Faculty Publications

Much of patent reform has focused on efforts to make it harder to obtain and enforce low-quality patents. The most straightforward way to achieve this goal is to raise the substantive standards of patentability. What is often ignored in discussions about raising patentability standards is that high-quality inventions can slip through the cracks. What is more troubling is that sometimes this happens because of bias. This Article draws attention to foresight bias, which occurs when a decision-maker lets over-pessimism and an oversimplified view of the future influence the patentability determination. Foresight bias leads to a patent denial regardless of the …

Rethinking Novelty In Patent Law, Sean B. Seymore

Vanderbilt Law School Faculty Publications

The novelty requirement seeks to ensure that a patent will not issue if the public already possesses the invention. Although gauging possession is usually straightforward for simple inventions, it can be difficult for those in complex fields like biotechnology, chemistry, and pharmaceuticals. For example, if a drug company seeks to patent a promising molecule that was disclosed but never physically made in the prior art, the key possession question is whether a person having ordinary skill in the art (PHOSITA) could have made it at the time of the prior disclosure. Put differently, could the PHOSITA rely on then-existing knowledge …

Patents As Escalators, Amelia S. Rinehart

Vanderbilt Journal of Entertainment & Technology Law

High technology companies commit time, effort, and resources to innovation. Over the course of a research and development project, an innovative company may face several sequential decisions regarding whether to continue to invest in the project and whether to commercialize the discoveries that have been made. Companies often seek patents early in the research and development process to receive the right to exclude others from practicing the invention. Given a current trend toward earlier and earlier patent filing, several scholars suggest that this strategy could leave many inventions underdeveloped; companies may treat patents like real options, deciding later where to …

Uneasy Lies The Head That Wears The Crown: Why Content's Kingdom Is Slipping Away, Jonathan Handel

Vanderbilt Journal of Entertainment & Technology Law

This Article examines the ongoing power struggle between the content industries (with a particular focus on Hollywood) and the technology industry. These two sectors are intertwined like never before, yet their fates seem wildly divergent, with content stumbling while distribution technology thrives.

The Article begins by illustrating that, even before the recession took hold, traditional paid content was in trouble, and that this was and is true across a range of distribution platforms and content types, including theatrical motion pictures, home video, network television, music, newspapers, books, and magazines. The Article next posits six reasons for content's discontent: supply and …

Product Liability, Research And Development, And Innovation, W. Kip Viscusi, Michael J. Moore

Vanderbilt Law School Faculty Publications

Product liability ideally should promote efficient levels of product safety, but misdirected liability efforts may depress beneficial innovations. This paper examines these competing effects of liability costs on product R & D intensity and new product introductions by manufacturing firms. At low to moderate levels of expected liability costs, there is a positive effect of liability costs on product innovation. At very high levels of liability costs, the effect is negative. At the sample mean, liability costs increase R & D intensity by 15 percent. The greater linkage of these effects to product R & D rather than process R …

Judicial Analysis Of Predation: The Emerging Trends, James D. Hurwitz, William E. Kovacic

Vanderbilt Law Review

This Article examines the recent judicial experience in this endeavor. The purposes of the Article are twofold.The first is to describe the current state of the law regarding predation and to discern significant trends that may be developing. The second purpose is to explore the considerations that courts must weigh in evaluating the legal utility of proposed rules that may be valid as a matter of economic theory. Toward these ends,part II of the Article examines the economic and legal context in which litigants present predation claims. Specifically, this part re-views some of the academic debates that have so greatly …