Law Commons^™

Nonrivalry And Price Discrimination In Copyright Economics, John P. Conley, Christopher S. Yoo

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The literature on the economics of copyright proceeds from the premise that copyrightable works constitute pure public goods, which is generally modeled by assuming that such works are nonexcludable and that the marginal cost of making additional copies is essentially zero. A close examination of the foundational literature on public goods theory reveals that the defining characteristic of public goods is instead the optimality criterion known as the “Samuelson condition,” which implies that the systematic bias toward underproduction is the result of the inability to induce consumers to reveal their preferences rather than the inability to exclude or price at …

Custom, Comedy, And The Value Of Dissent, Jennifer E. Rothman

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In this essay, I comment on Dotan Oliar and Christopher Sprigman's article, There's No Free Laugh (Anymore): The Emergence of Intellectual Property Norms and the Transformation of Stand-Up Comedy, 94 Va. L. Rev. 1787 (2008). Their study of the quasi-intellectual property norms in the stand-up comedy world provides yet another compelling example of the phenomenon that I have explored in which the governing intellectual property regime takes a backseat to social norms and other industry customs that dominate the lived experiences of many in creative fields. The microcosm of stand-up comedy reinforces my concern that customs are being used to …

The Questionable Use Of Custom In Intellectual Property, Jennifer E. Rothman

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The treatment of customary practices has been widely debated in many areas of the law, but there has been virtually no discussion of how custom is and should be treated in the context of intellectual property (IP). Nevertheless, customs have a profound impact on both de facto and de jure IP law. The unarticulated incorporation of custom threatens to swallow up IP law, and replace it with industry-led IP regimes that give the public and other creators more limited rights to access and use intellectual property than were envisioned by the Constitution and Congress. This article presents a powerful critique …

Why Custom Cannot Save Copyright's Fair Use Defense, Jennifer E. Rothman

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This article is a short reply to Richard Epstein's comments on my article, The Questionable Use of Custom in Intellectual Property, 93 Virginia Law Review 1899 (2007). In the underlying article, I critique the general preference of courts to incorporate customary practices into intellectual property law. In this reply, I disagree with Professor Epstein's claim that custom should be dispositive in some instances to determine the scope of copyright's fair use defense. Although I observe that for some individual parties various customary practices may be cost-effective, their incorporation into the law expands the scope of copyright in ways that unreasonably …

Restraints On Innovation, Herbert J. Hovenkamp

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Beginning with the work of Joseph Schumpeter in the 1940s and later elaborated by Robert W. Solow's work on the neoclassical growth model, economics has produced a strong consensus that the economic gains from innovation dwarf those to be had from capital accumulation and increased price competition. An important but sometimes overlooked corollary is that restraints on innovation can do far more harm to the economy than restraints on traditional output or pricing. Many practices that violate the antitrust laws are best understood as restraints on innovation rather than restraints on pricing.

While antitrust models for assessing losses that result …

Ip And Antitrust Policy: A Brief Historical Overview, Herbert J. Hovenkamp

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The history of IP/antitrust litigation is filled with exaggerated notions of the power conferred by IP rights and imagined threats to competition. The result is that antitrust litigation involving IP practices has seen problems where none existed. To be sure, finding the right balance between maintaining competition and creating incentives to innovate is no easy task. However, the judge in an IP/antitrust case almost never needs to do the balancing, most of which is done in the language of the IP provisions. The role of antitrust tribunals is the much more limited one of ensuring that any alleged threat to …

Initial Interest Confusion: Standing At The Crossroads Of Trademark Law, Jennifer E. Rothman

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While the benchmark of trademark infringement traditionally has been a demonstration that consumers are likely to be confused by the use of a similar or identical trademark to identify the goods or services of another, a court-created doctrine called initial interest confusion allows liability for trademark infringement solely on the basis that a consumer might initially be interested, attracted, or distracted by a competitor's, or even a non-competitor's, product or service. Initial interest confusion is being used with increasing frequency, especially on the Internet, to shut down speech critical of trademark holders and their products and services, to prevent comparative …

Unilateral Refusals To License In The Us, Herbert J. Hovenkamp, Mark D. Janis, Mark A. Lemley

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Most antitrust claims relating to intellectual property involve challenges to agreements, licensing practices or affirmative conduct involving the use or disposition of the intellectual property rights or the products they cover. But sometimes an antitrust claim centers on an intellectual property owner's refusal to use or license an intellectual property right, perhaps coupled with efforts to enforce the intellectual property right against infringers. The allegation may be that the intellectual property right is so essential to competition that it must be licensed across the board, or that a refusal to license it to one particular party was discriminatory, or that …

Reconsidering The Dmca, R. Polk Wagner

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patents, Law and economics, prosecution history estoppel, doctrine of equivalents, ex ante, ex post, default rules, PTO, Federal Circuit, patent prosecution, patent litigation, intellectual property, patent reform, patent administration, patent office

Towards A Differentiated Products Theory Of Copyright, Christopher S. Yoo

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The well-known “access-incentives” tradeoff that lies at the heart of the standard economic analysis of copyright follows largely from the assumption that copyright turns authors into monopolists. If one instead analyzes copyright through a framework that allows for product differentiation and entry, the access-incentives tradeoff becomes less significant. By increasing producer appropriability and profit, increased copyright protection can stimulate entry of competitors producing similar works, which in turn results in lower prices, increased product variety, and increased access. This approach would also broaden set of available policy instruments, although disentangling the effects of one from another can be quite complicated.

United States Antitrust Policy In An Age Of Ip Expansion, Herbert J. Hovenkamp

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The idea that there is a tension between antitrust and the intellectual property laws is readily exaggerated. The tension that exists results mainly from our uncertainty about the optimal amount and scope of IP protection. In general, antitrust draws clearer lines than intellectual property law does, although one should not push the point too far. Antitrust policy as manifested in the courts has achieved a fair amount of consensus today. By contrast, deep uncertainty remains about fundamental questions concerning the socially optimal outcome of IP disputes. In addition, while the antitrust statutes are for the most part public regarding provisions …

Who Owns The 'First, Rough Draft Of History'? Reconsidering Copyright In News, Eric Easton

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This article asserts that newspapers' quest for copyright protection was an early step onto a slippery slope toward a property-based, rather than service-based, ethos, and that removing that protection may at the least mark a first, symbolic step back from the abyss. Part I examines the state of contemporary journalism, particularly with respect to the propertization of news. Part II traces the history of copyright protection for news from its origins in censorship to the American copyright regime today, with emphasis on the run up to the 1909 amendments that first codified protection for newspapers. Part III advocates the moral …

Information Wants To Be Free: Intellectual Property And The Mythologies Of Control, R. Polk Wagner

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This article challenges a central tenet of the recent criticism of intellectual property rights: the suggestion that the control conferred by such rights is detrimental to the continued flourishing of a public domain of ideas and information. I argue that such theories understate the significance of the intangible nature of information, and thus overlook the contribution that even perfectly controlled intellectual creations make to the public domain. In addition, I show that perfect control of propertized information - an animating assumption in much of the contemporary criticism - is both counterfactual and likely to remain so. These findings suggest that …

Anticompetitive Settlement Of Intellectual Property Disputes, Herbert J. Hovenkamp, Mark D. Janis, Mark A. Lemley

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The overwhelming majority of intellectual property lawsuits settle before trial. These settlements involve agreements between the patentee and the accused infringer, parties who are often competitors before the lawsuit. Because these competitors may agree to stop competing, to regulate the price each charges, and to exchange information about products and prices, settlements of intellectual property disputes naturally raise antitrust concerns. In this paper, we suggest a way to reconcile the interests of intellectual property law and antitrust law in evaluating intellectual property settlements. In Part I, we provide background on the issue. Part II argues that in most cases courts …

Copyright Preemption And The Right Of Publicity, Jennifer E. Rothman

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This article addresses the conflict between an ever-expanding right of publicity and the federally guaranteed rights provided by copyright law. This conflict is highlighted in the Wendt v. Host International case in which the actors George Wendt and John Ratzenberger from Cheers used the right of publicity to prevent the show's creators from licensing the use of the Norm and Cliff characters in the decor of a chain of airport bars. Even though the licensing of the characters was explicitly allowed under copyright law, the Ninth Circuit held that the right of publicity prevented the creators from doing so. Similarly, …

Reconsidering Estoppel: Patent Administration And The Failure Of Festo, R. Polk Wagner

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Last Term, in Festo Corporation v. Shoketsu Kinzoku Kogyo Kabashuki Co., the United States Supreme Court missed perhaps the most important opportunity for patent law reform in two decades. At the core of the failure to grasp the implications of "prosecution history estoppel" - a judicially-crafted principle limiting the enforceable scope of patents based on acts occurring during their application process - is the heretofore universal (but ultimately unsupportable) view of the doctrine as an arbitrary ex post limitation on patent scope. This Article demonstrates the serious flaws in this traditionalist approach, and develops a new theory of prosecution history …

Current Developments In Cyberspace, Eric Easton

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No abstract provided.

Still Adjusting To Markman: A Prescription For The Timing Of Claim Construction Hearings, William Lee, Anita Krug

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In Markman v. Westview Instruments, Inc., the Supreme Court held that the interpretation of patent claims is a question of law to be determined by the court rather than a question of fact to be decided by the jury. The Court based its holding on the belief that judges are better suited than juries to address claim interpretation issues and that claim interpretation by the court would result in greater uniformity in the treatment of patents. The Markman decision, however, has confronted the district courts with a host of thorny questions, such as what evidence they may consider in their …

Reverse Engineering Of Computer Software And U.S. Antitrust Law, Robert H. Lande, Sturgis M. Sobin

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This article explores when efforts by firms to restrict reverse engineering of their software, and corresponding agreements by other firms not to reverse engineer this software, could raise significant antitrust issues.

This article provides an overview of how the laws prohibiting certain acts of monopolization, attempted monopolization, refusals to deal, and tying might apply to restrictions and agreements concerning the reverse engineering of computer software. As a necessary predicate to this analysis, the article first briefly describes the contours of intellectual property protection for software, including the fair use and the copyright misuse doctrines.