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Full-Text Articles in Business

Tradable Patent Rights, Ian Ayres, Gideon Parchomovsky Dec 2007

Tradable Patent Rights, Ian Ayres, Gideon Parchomovsky

All Faculty Scholarship

Patent thickets may inefficiently retard cumulative innovation. This paper explores two alternative mechanisms that may be used to weed out patent thickets. Both mechanisms are intended to reduce the number of patents in our society. The first mechanism we discuss is price based regulation of patents through a system of increasing renewal fees. The second and more innovative mechanism is quantity based regulation through the establishment of a system of Tradable Patent Rights. The formalization of tradable patent rights would essentially create a secondary market for patent permits in which patent protection will be bought and sold.


The Promise And Perils Of Credit Derivatives, Frank Partnoy, David A. Skeel Jr. Jan 2007

The Promise And Perils Of Credit Derivatives, Frank Partnoy, David A. Skeel Jr.

All Faculty Scholarship

In this Article, we begin what we believe will be a fruitful area of scholarly inquiry: an in-depth analysis of credit derivatives. We survey the benefits and risks of credit derivatives, particularly as the use of these instruments affect the role of banks and other creditors in corporate governance. We also hope to create a framework for a more general scholarly discussion of credit derivatives. We define credit derivatives as financial instruments whose payoffs are linked in some way to a change in credit quality of an issuer or issuers. Our research suggests that there are two major categories of …