Law Commons^™

On The Economics Of Copyright, Restitution And 'Fair Use': Systemic Versus Case-By-Case Responses To Market Failure, Wendy J. Gordon

Faculty Scholarship

The 'public goods' characteristics possess by intangible works of authorship and invention present the basic market failure problem usually relied on to justify intellectual property rights. What is ordinarily less emphasized is that such market failure is no more than half of the prerequisite for an economically desirable copyright or patent system: another requisite condition is that there be less costly market imperfections after intellectual property is instituted than there would have been in the absence of the intellectual property regime. Intellectual property rights are best justified in the presence of "asymmetric market conditions", that is where (1) in the …