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Competition For Innovation, Herbert J. Hovenkamp Dec 2013

Competition For Innovation, Herbert J. Hovenkamp

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Both antitrust and IP law are limited and imperfect instruments for regulating innovation. The problems include high information costs and lack of sufficient knowledge, special interest capture, and the jury trial system, to name a few. More fundamentally, antitrust law and intellectual property law have looked at markets in very different ways. Further, over the last three decades antitrust law has undergone a reformation process that has made it extremely self conscious about its goals. While the need for such reform is at least as apparent in patent and copyright law, very little true reform has actually occurred.

Antitrust has …


Patent Exclusions And Antitrust After Therasense, Herbert J. Hovenkamp Dec 2013

Patent Exclusions And Antitrust After Therasense, Herbert J. Hovenkamp

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A patent may be held invalid if it was obtained by “inequitable conduct” before the PTO during the process of patent prosecution. In its Therasense decision the Federal Circuit imposed severe requirements against those attempting to defend against a patent on the basis of inequitable conduct, insisting that inequitable conduct be measured essentially by a subjective test. Objective “reasonable person” tests such as negligence or even gross negligence will not suffice. By contrast, the Supreme Court has insisted that the conduct giving rise to a wrongful infringement action violating the antitrust laws be initially based on an objective test – …


Distributive Justice And Consumer Welfare In Antitrust, Herbert J. Hovenkamp Dec 2013

Distributive Justice And Consumer Welfare In Antitrust, Herbert J. Hovenkamp

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The dominant view of antitrust policy in the United States is that it is intended to promote some version of economic welfare. More specifically, antitrust promotes allocative efficiency by ensuring that markets are as competitive as they can practicably be, and that firms do not face unreasonable roadblocks to attaining productive efficiency, which refers to both cost minimization and innovation.

The distribution concern that has dominated debates over United States antitrust policy over the last several decades is whether antitrust should adopt a “consumer welfare” principle rather than a more general neoclassical “total welfare” principle. In The Antitrust Paradox Robert …


The Innovation Commons, Herbert J. Hovenkamp Dec 2013

The Innovation Commons, Herbert J. Hovenkamp

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This book of CASES AND MATERIALS ON INNOVATION AND COMPETITION POLICY is intended for educational use. The book is free for all to use subject to an open source license agreement. It differs from IP/antitrust casebooks in that it considers numerous sources of competition policy in addition to antitrust, including those that emanate from the intellectual property laws themselves, and also related issues such as the relationship between market structure and innovation, the competitive consequences of regulatory rules governing technology competition such as net neutrality and interconnection, misuse, the first sale doctrine, and the Digital Millennium Copyright Act (DMCA). Chapters …


Escaping Entity-Centrism In Financial Services Regulation, Anita Krug Dec 2013

Escaping Entity-Centrism In Financial Services Regulation, Anita Krug

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In the ongoing discussions about financial services regulation, one critically important topic has not been recognized, let alone addressed. That topic is what this Article calls the “entity-centrism” of financial services regulation. Laws and rules are entity-centric when they assume that a financial services firm is a stand-alone entity, operating separately from and independently of any other entity. They are entitycentric, therefore, when the specific requirements and obligations they comprise are addressed only to an abstract and solitary “firm,” with little or no contemplation of affiliates, parent companies, subsidiaries, or multi-entity enterprises. Regulatory entity-centrism is not an isolated phenomenon, as …


Constitutionally Tailoring Punishment, Richard A. Bierschbach, Stephanos Bibas Dec 2013

Constitutionally Tailoring Punishment, Richard A. Bierschbach, Stephanos Bibas

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Since the turn of the century, the Supreme Court has begun to regulate non-capital sentencing under the Sixth Amendment in the Apprendi line of cases (requiring jury findings of fact to justify sentence enhancements) as well as under the Eighth Amendment in the Miller and Graham line of cases (forbidding mandatory life imprisonment for juvenile defendants). Though both lines of authority sound in individual rights, in fact they are fundamentally about the structures of criminal justice. These two seemingly disparate lines of doctrine respond to structural imbalances in non-capital sentencing by promoting morally appropriate punishment judgments that are based on …


Anticompetitive Patent Settlements And The Supreme Court's Actavis Decision, Herbert J. Hovenkamp Nov 2013

Anticompetitive Patent Settlements And The Supreme Court's Actavis Decision, Herbert J. Hovenkamp

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In FTC v. Actavis the Supreme Court held that settlement of a patent infringement suit in which the patentee of a branded pharmaceutical drug pays a generic infringer to stay out of the market may be illegal under the antitrust laws. Justice Breyer's majority opinion was surprisingly broad, in two critical senses. First, he spoke with a generality that reached far beyond the pharmaceutical generic drug disputes that have provoked numerous pay-for-delay settlements.

Second was the aggressive approach that the Court chose. The obvious alternatives were the rule that prevailed in most Circuits, that any settlement is immune from antitrust …


Patent Value And Citations: Creative Destruction Or Strategic Disruption?, David S. Abrams, Ufuk Akcigit, Jillian Popadak Nov 2013

Patent Value And Citations: Creative Destruction Or Strategic Disruption?, David S. Abrams, Ufuk Akcigit, Jillian Popadak

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Prior work suggests that more valuable patents are cited more and this view has become standard in the empirical innovation literature. Using an NPE-derived dataset with patent-specific revenues we find that the relationship of citations to value in fact forms an inverted-U, with fewer citations at the high end of value than in the middle. Since the value of patents is concentrated in those at the high end, this is a challenge to both the empirical literature and the intuition behind it. We attempt to explain this relationship with a simple model of innovation, allowing for both productive and strategic …


Unfinished Business: Protecting Voting Rights In The Twenty-First Century, Gilda R. Daniels Nov 2013

Unfinished Business: Protecting Voting Rights In The Twenty-First Century, Gilda R. Daniels

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While minorities have experienced great progress because of the Voting Rights Act, particularly section 5 of the Act, the work to achieve an electoral process free of discrimination remains unfinished. In Shelby County v. Holder, the Supreme Court struck down section 4 of the Act, which provided the coverage formula through which section 5 was implemented. Without section 4, there is no section 5. The historical and contemporaneous discrimination that minorities in states formerly covered under section 5 continue to face is substantial and outpaces that in noncovered states. Scholars cannot divorce the debate surrounding section 5’s constitutionality, which continues …


Innovation, Ip Rights, And Anticompetitive Exclusion, Herbert J. Hovenkamp Oct 2013

Innovation, Ip Rights, And Anticompetitive Exclusion, Herbert J. Hovenkamp

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This book of CASES AND MATERIALS ON INNOVATION AND COMPETITION POLICY is intended for educational use. The book is free for all to use subject to an open source license agreement. It considers numerous sources of competition policy in addition to antitrust, including those that emanate from the intellectual property laws themselves, and also related issues such as the relationship between market structure and innovation, the competitive consequences of regulatory rules governing technology competition such as net neutrality and interconnection, misuse, the first sale doctrine, and the Digital Millennium Copyright Act (DMCA). Chapters will be updated frequently. The author uses …


Resource Movement And The Legal System, Herbert J. Hovenkamp Oct 2013

Resource Movement And The Legal System, Herbert J. Hovenkamp

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In "The Problem of Social Cost" Ronald Coase considered several common law disputes among neighbors whose economic activities conflicted with one another. For example, Sturges v. Bridgman was a nineteenth century nuisance case involving a pediatrician whose practice was hindered by his neighbor, a confectioner whose operation required a noisy mechanical mortar & pestle. Coase showed that if high transaction costs did not interfere, private bargaining would provide a solution which he characterized as efficient -- namely, that the right to continue would be given to the person who valued it most. For example, if the pediatrician valued the right …


Why Whistleblowers Lose: An Empirical And Qualitative Analysis Of State Court Cases, Nancy M. Modesitt Oct 2013

Why Whistleblowers Lose: An Empirical And Qualitative Analysis Of State Court Cases, Nancy M. Modesitt

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This Article was originally intended to be an analysis of the propriety, or impropriety, of the doctrines most commonly used by courts to decide employees’ whistleblowing retaliation claims against employers. However, upon conducting initial research, it quickly became apparent that there was very little data available on whistleblowing cases. Unlike employment discrimination cases, where several empirical studies have been conducted, there is only one empirical analysis of whistleblower claims, which focused solely on outcomes in the federal administrative process for claims brought under the Sarbanes-Oxley Act (SOX). That study revealed that whistleblowers fare poorly for a number of reasons, but …


Defining American: The Dream Act, Immigration Reform And Citizenship, Elizabeth Keyes Oct 2013

Defining American: The Dream Act, Immigration Reform And Citizenship, Elizabeth Keyes

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The grassroots movement propelling the DREAM Act and immigration reform forward reveals how the definition of citizenship is undergoing a dramatic transformation, in ways both inspiring and troubling. The DREAM movement depends upon the compelling but exceptional stories of passionate, high-achieving, law-abiding youth who already define themselves as being American, and worthy of legal status. Situating this narrative in the rich literature of citizenship, the article shows how the DREAM movement effectively exposes the disjuncture between the DREAMers' identity as Americans and their lack of legal immigration status. The article celebrates how this narrative succeeds as a contrast to the …


Defying Conventional Wisdom: The Case For Private Antitrust Enforcement, Joshua P. Davis, Robert H. Lande Oct 2013

Defying Conventional Wisdom: The Case For Private Antitrust Enforcement, Joshua P. Davis, Robert H. Lande

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The conventional wisdom is that private antitrust enforcement lacks any value. Indeed, skepticism of private enforcement has been so great that its critics make contradictory claims. The first major line of criticism is that private enforcement achieves too little — it does not even minimally compensate the actual victims of antitrust violations and does not significantly deter those violations. A second line of criticism contends that private enforcement achieves too much — providing excessive compensation, often to the wrong parties, and producing overdeterrence. This article undertakes the first ever systematic evaluation of these claims. Building upon original empirical work and …


Collective Representation And Employee Voice In The U.S. Public Sector Workplace: Looking North For Solutions?, Martin H. Malin Oct 2013

Collective Representation And Employee Voice In The U.S. Public Sector Workplace: Looking North For Solutions?, Martin H. Malin

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Legislation enacted in many states following the 2010 elections in the United States strengthened unilateral public employer control and weakened employee voice. This rebalancing of power occurred in the context of state public employee labour relations acts modeled on the National Labor Relations Act (NLRA), but with a narrower scope of bargaining than in the private sector. This narrow scope channels unions’ voice away from the quality of public services and towards protecting members from the effects of decisions unilaterally imposed by management. The Supreme Court of Canada has held that the freedom of association guaranteed by the Charter of …


"We The People," Constitutional Accountability, And Outsourcing Government, Kimberly L. Wehle Oct 2013

"We The People," Constitutional Accountability, And Outsourcing Government, Kimberly L. Wehle

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The ubiquitous outsourcing of federal functions to private contractors, although benign in the main, raises the most fundamental of constitutional questions: What institutions and actors comprise the "federal government" itself? From Abu Ghraib to Blackwater, a string of scandals has heightened public awareness that highly sensitive federal powers and responsibilities are routinely entrusted to government contractors. At the same time, the American populace seems vaguely aware that, when it comes to ensuring accountability for errors and abuses of power, contractors occupy a special space. The fact is that myriad structural and procedural means for holding traditionally government actors accountable do …


The Normative Legitimacy Of International Courts, Nienke Grossman Oct 2013

The Normative Legitimacy Of International Courts, Nienke Grossman

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This Article’s objective is to spark discussion about the standards by which we judge international courts. Traditional justifications for the authority of international courts are based on outmoded assumptions of their role and impact. State consent and procedural fairness to litigants are insufficient to ground the legitimacy of institutions that may adjudicate the international rights and duties of nonlitigants, deeply affect the interests of nonlitigating stakeholders, and shape the law prospectively. These realities mandate a new approach to the legitimacy of international courts. This Article presents alternative or additional approaches for justifying the authority of international courts rooted in both …


The Dangers Of Psychotropic Medication For Mentally Ill Children: Where Is The Child’S Voice In Consenting To Medication? An Empirical Study, Donald H. Stone Oct 2013

The Dangers Of Psychotropic Medication For Mentally Ill Children: Where Is The Child’S Voice In Consenting To Medication? An Empirical Study, Donald H. Stone

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When a child with a mental illness is being prescribed psychotropic medication. who decides whether the child should take the medication — the parent or the child? What if the child is sixteen years of age? What if the child is in foster care: Should the parent or social service agency decide? Prior to administering psychotropic medication, what specific information should be provided to the person authorized to consent on behalf of the child? Should children be permitted to refuse psychotropic medications? If so, at what age should a child he able to refuse such medication What procedures should be …


Private Enforcement, Stephen B. Burbank, Sean Farhang, Herbert Kritzer Oct 2013

Private Enforcement, Stephen B. Burbank, Sean Farhang, Herbert Kritzer

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Our aim in this Article is to advance understanding of private enforcement of statutory and administrative law in the United States and to raise questions that will be useful to those who are concerned with regulatory design in other countries. To that end, we briefly discuss aspects of American culture, history, and political institutions that reasonably can be thought to have contributed to the growth and subsequent development of private enforcement. We also set forth key elements of the general legal landscape in which decisions about private enforcement are made, aspects of which should be central to the choice of …


Migrant Workers’ Access To Justice At Home: Indonesia, Bassina Farbenblum, Eleanor Taylor-Nicholson, Sarah Paoletti Oct 2013

Migrant Workers’ Access To Justice At Home: Indonesia, Bassina Farbenblum, Eleanor Taylor-Nicholson, Sarah Paoletti

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Each year, around half a million Indonesians travel abroad to work, half of those to the Middle East. They are typically women from small cities or villages with primary education and limited work experience, hired to perform domestic work. Many suffer abuse and exploitation but have virtually no access to recourse within their host country’s legal system.

The vulnerability of migrant workers abroad makes it crucial for them to be able to seek redress in their own countries. Access to justice at home also allows for redress when home governments and private recruitment businesses breach their legal responsibilities to migrant …


Can Pensions Be Restructured In (Detroit’S) Municipal Bankruptcy?, David A. Skeel Jr. Oct 2013

Can Pensions Be Restructured In (Detroit’S) Municipal Bankruptcy?, David A. Skeel Jr.

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This paper, which was written as a White Paper for the Federalist Society, describes and assesses the question whether public employee pensions can be restructured in bankruptcy, with a particular focus on Detroit. Part I gives a brief overview both of the treatment of pensions under state law, and of the Michigan law governing the Detroit pensions. Part II explains the legal argument for restructuring an underfunded pension in bankruptcy. Part III considers the major federal constitutional objections to restructuring, Part IV discusses arguments based on the Michigan Constitution, and Part V assesses several Chapter 9 arguments against restructuring. None …


Activating Actavis, Aaron Edlin, C. Scott Hemphill, Herbert J. Hovenkamp, Carl Shapiro Oct 2013

Activating Actavis, Aaron Edlin, C. Scott Hemphill, Herbert J. Hovenkamp, Carl Shapiro

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In Federal Trade Commission v. Actavis, Inc., the Supreme Court provided fundamental guidance about how courts should handle antitrust challenges to reverse payment patent settlements. The Court came down strongly in favor of an antitrust solution to the problem, concluding that “an antitrust action is likely to prove more feasible administratively than the Eleventh Circuit believed.” At the same time, Justice Breyer’s majority opinion acknowledged that the Court did not answer every relevant question. The opinion closed by “leav[ing] to the lower courts the structuring of the present rule-of-reason antitrust litigation.”

This article is an effort to help courts and …


Coase, Herbert J. Hovenkamp Oct 2013

Coase, Herbert J. Hovenkamp

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This brief essay considers the career, contributions, and influence of Ronald Coase, who passed away in September, 2013. Comments are welcome.


Graev: Conditional Facade Easement, Wendy G. Gerzog Sep 2013

Graev: Conditional Facade Easement, Wendy G. Gerzog

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In Graev v. Commissioner, the Tax Court decided whether the taxpayers’ donations of a facade easement and cash contributions were conditional gifts and therefore disallowable as charitable deductions under the requirements of the regulations. The court reviewed the facts to determine whether the condition was allowed because it was “so remote as to be negligible.” The taxpayers argued that case law at the time of the donation allowed for a donation of between 10 and 15 percent of the value of the property, and that they had deducted a value constituting 11 percent of the property’s appraised value; that the …


Institutional Advantage In Competition And Innovation Policy, Herbert J. Hovenkamp Sep 2013

Institutional Advantage In Competition And Innovation Policy, Herbert J. Hovenkamp

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In the United States responsibility for innovation policy and competition policy are assigned to different agencies with different authority. The principal institutional enforcers of patent policy are the United States Patent and Trademark Office (USPTO), the International Trade Commission (ITC), and the federal district courts as overseen by the United States Court of Appeals for the Federal Circuit, and ultimately the Supreme Court. While competition policy is not an explicit part of patent policy, competition issues arise frequently, even when they are not seen as such.

Since early in the twentieth century antitrust courts have had to confront practices that …


Originalism, Stare Decisis, And Constitutional Authority, Christopher J. Peters Sep 2013

Originalism, Stare Decisis, And Constitutional Authority, Christopher J. Peters

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This chapter examines the relationship among three normative questions about

American constitutional law: How should the Constitution be interpreted? When

may (or should) the Supreme Court overrule its own constitutional precedents? And

why is the Constitution binding at all? The author begins by de-constructing the

“special difficulty” with stare decisis that proponents of originalist interpretation

often perceive. That difficulty, the author contends, can be ex-plained only by

reference to some underlying normative theory of constitutional authority―of why

the Constitution binds us in the first place. The author then as-sesses four extant

accounts of constitutional authority to determine whether any of …


Should The Internet Exempt The Media Sector From The Antitrust Laws?, Thomas J. Horton, Robert H. Lande Sep 2013

Should The Internet Exempt The Media Sector From The Antitrust Laws?, Thomas J. Horton, Robert H. Lande

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This article examines whether the "old media" and the "new media", including the Internet, should be considered to be within the same relevant market for antitrust purposes. To do this the article first demonstrates that proper antitrust consideration of the role of non-price competition necessitates that “news” and “journalism” be analyzed in two distinct ways. First, every part of the operations of a newspaper (or other type of media source), including its investigative reporting and local coverage, should be assessed separately. We present empirical evidence collected for this study which demonstrates that the old media continues to win the vast …


Secondary-Line Differential Pricing And The Robinson-Patman Act, E. Thomas Sullivan, Herbert J. Hovenkamp, Howard A. Shelanski, Christopher R. Leslie Sep 2013

Secondary-Line Differential Pricing And The Robinson-Patman Act, E. Thomas Sullivan, Herbert J. Hovenkamp, Howard A. Shelanski, Christopher R. Leslie

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Because it is taught infrequently, the full text of Chapter 8 of our antitrust casebook, on the Robinson-Patman Act, is now posted online and free for anyone to use. This chapter covers all issues related to secondary-line enforcement, the "cost justification," "meeting competition," and other defenses, as well as buyers' liability. Primary-line enforcement is still covered with the materials on predatory pricing in Chapter 6.


U.C.C. Article 9, Filing-Based Authority, And Fundamental Property Principles: A Reply To Professor Plank, Steven L. Harris, Charles W. Mooney Jr. Sep 2013

U.C.C. Article 9, Filing-Based Authority, And Fundamental Property Principles: A Reply To Professor Plank, Steven L. Harris, Charles W. Mooney Jr.

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Uniform Commercial Code Article 9 generally follows the common-law principle that one cannot give rights in property that one does not have (nemo dat quod non habet). In many circumstances, however, Article 9’s priority rules, including its rule awarding priority to the first security interest that is perfected or as to which a financing statement has been filed, trump nemo dat and enable a debtor to grant a senior security interest in property that the debtor previously had encumbered. In this article, Professors Steven Harris and Charles Mooney argue that, properly understood, the first-to-file-or-perfect rule confers upon a debtor the …


Lining Up: Ensuring Equal Access To Vote, Gilda R. Daniels Aug 2013

Lining Up: Ensuring Equal Access To Vote, Gilda R. Daniels

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This booklet ( a joint project of the Advancement Project and the Lawyer's Committee for Civil Rights Under Law) provides an extensive overview of restrictive voting laws, especially concerning minority voters. Daniels begins with a summary of voter obstructions and intimidation in the 2012 election, and then places that within the context of the history of voting and race in America.

Most recently, the Section 5 protections of the Voting Rights Act of 1965 were effectively removed by the Shelby County v. Holder Supreme Court decision. Daniels then explains what this means practically and legally for minority voters and how …