Law Commons^™

Markets In Ip And Antitrust, Herbert J. Hovenkamp

All Faculty Scholarship

The purpose of market definition in antitrust law is to identify a grouping of sales such that a single firm who controlled them could maintain prices for a significant time at above the competitive level. The conceptions and procedures that go into “market definition” in antitrust can be quite different from those that go into market definition in IP law. When the issue of market definition appears in IP cases, it is mainly as a query about the range over which rivalry occurs. This rivalry may or may not have much to do with a firm’s ability to charge a …

Mergers, Market Dominance And The Lundbeck Case, Herbert J. Hovenkamp

All Faculty Scholarship

In Lundbeck the Eighth Circuit affirmed a district court’s judgment that a merger involving the only two drugs approved for treating a serious heart condition in infants was lawful. Although the drugs treated the same condition they were not bioequivalents. The Eighth Circuit approved the district court’s conclusion that they had not been shown to be in the same relevant market.

Most mergers that are subject to challenge under the antitrust laws occur in markets that exhibit some degree of product differentiation. The Lundbeck case illustrates some of the problems that can arise when courts apply ideas derived from models …

Tying Arrangements And Lawful Alternatives: Transaction Costs Considerations, Herbert J. Hovenkamp

All Faculty Scholarship

Tying arrangements often increase welfare by promoting product quality and protecting the supplier's goodwill in the tying product. When the tying product works effectively only with ancillary materials or accessories or services of a particular kind or quality, its supplier can assure the requisite quality of the ancillary product only by supplying that product itself. The cost savings defense and the defenses of quality control or good will are the most widely recognized and accepted tying defenses.

One characteristic of manufactured products is differentiation among the offerings of various brands. This in turn produces a need for more specialized provision …

Quasi Exclusive Dealing, Herbert J. Hovenkamp

All Faculty Scholarship

A firm's discounting policies over a single product raise concerns analogous to exclusive dealing in two situations. First, the firm may offer conditional discounts structured in such a way as to induce customers to take most of their requirements for a given product from the defendant. In addition, a firm may employ “slotting” fees or similar allowances paid by manufacturers to retailers, with the possible result that rivals have difficulty obtaining access to shelf space. Neither practice is literally "exclusive dealing," because neither involves a condition that the purchaser not deal in the goods of a rival, although they may …

Intellectual Property And Policy Issues In Biotechnology, Amy Iver Yancey

Masters Theses

Intellectual property, particularly patents, plays a major role in innovation and discovery in biotechnology. Likewise, since the passage of the Bayh-Dole Act in 1981, patents have become an increasingly important factor in U.S. university-driven basic research, especially in the life sciences where patented technologies have transformed agriculture. Specifically, this paper looks at the potential impacts of these trends on university driven research, the university researcher, the pharmaceutical industry, and the farm sector with an emphasis on recent and pending court cases and legislation. This paper examines policy and adoptions issues in biotechnology and biomedicine in depth and touches on important …

Tying Noncompetitive Goods, Herbert J. Hovenkamp

All Faculty Scholarship

Many of the classic tying cases involved tied products that were common staples such as button fasteners, canned ink, dry ice, or salt. These products were sold in competitive markets, presumably at prices very close to cost. For most of them the most likely explanations for the tie were quality control or price discrimination, both with competitively benign results in the great majority of situations. When the tied good is sold in a noncompetitive market, however, an additional consumer welfare enhancing result is likely to obtain – namely, the elimination of double marginalization, which occurs when separate sellers of complementary …

A Preface To Neoclassical Legal Thought, Herbert J. Hovenkamp

All Faculty Scholarship

Most legal historians speak of the period following classical legal thought as “progressive legal thought.” That term creates an unwarranted bias in characterization, however, creating the impression that conservatives clung to an obsolete “classical” ideology, when in fact they were in many ways just as revisionist as the progressives legal thinkers whom they critiqued. The Progressives and New Deal thinkers whom we identify with progressive legal thought were nearly all neoclassical, or marginalist, in their economics, but it is hardly true that all marginalists were progressives. For example, the lawyers and policy makers in the corporate finance battles of the …

Generic Wish-Lists For State-Centric Policies, Edzia Carvalho

Human Rights & Human Welfare

The Central America depicted in the article under review resembles a region visited by the Four Horsemen of the Apocalypse—colonial Conquest, civil War, Famine and other natural disasters, and poverty, disease and Death. Added to this list of woes are the recent drug-fueled conflict, democratic instability, weak state capacity, and the socio-economic fallout of the economic recession in the United States. While the first half of the article records these problems, the author shifts gears in the second half and provides an array of responses to these challenges, with a forceful recommendation that states in the region focus their efforts …

A Centrist Solution To Central American Violence And Inequality, Devin Joshi

Human Rights & Human Welfare

The northern triangle of Central America (El Salvador, Guatemala, and Honduras) has experienced horrific violence, poverty, and a vicious cycle of human rights violations for decades. Repeated natural disasters and the re-routing of the drug trade through Central America are not helping the situation. On the other hand, nearby Costa Rica has achieved a much higher standard of human rights, public safety, and political stability. Why? Costa Rica has put in place four pillars of development and stability lacking in most other countries in the region: a stronger state, an educated population, inter-racial cooperation, and a more inclusive democracy. For …

From Brawn To Brains: How Immigration Works For America, Pia Orrenius

Western Migration Conference Series

Bio:

Pia Orrenius is Research Officer and Senior Economist at the Federal Reserve Bank of Dallas and Adjunct Professor at the Hankamer School of Business, Baylor University. Her research focuses on the labor market impacts of immigration, unauthorized immigration, and U.S. immigration policy, and her work has been published in the American Economic Review, Journal of Development Economics, Labour Economics, Industrial and Labor Relations Review, among others. She is coauthor of the book Beside the Golden Door: U.S. Immigration Reform in a New Era of Globalization (2010, AEI Press). Dr. Orrenius is a Research Fellow at …

Una América Varias Integraciones: Retos De La Integración Latinoamericana Desde La Fragmentación Y La Convergencia., Iván A. Rojas V

Iván Rojas V

Tying And The Rule Of Reason: Understanding Leverage, Foreclosure, And Price Discrimination, Herbert J. Hovenkamp

All Faculty Scholarship

Many tying arrangements are used by firms that do not have substantial market power in either of the two markets linked together by the tie. Their function must be something other than the enlargement or perpetuation of power. A few ties do involve fairly explicit exercises of market power, but they need not be used for a different purpose than the ties imposed by more competitive firms. This paper considers firms’ use of ties to exploit whatever power they already have over the tying product. The "leverage" theory sees ties as exploiting customers as a group via higher prices, whether …

Federal Earmarks In The State Of Georgia, Jeffrey Lazarus

Georgia Journal of Public Policy

Earmarks have been controversial ever since becoming a prominent part of the congressional spending process. Critics charge that earmarks fund projects with little or no economic value (for instance Ted Stevens’ “Bridge to Nowhere,”) but instead allow Congress members to direct government spending to campaign contributors (the charge leading to a federal investigation of the now-defunct lobbying firm PMA Group). On the other side of the controversy, congressional earmarks do fund a number of community improvements which are very valuable, at least locally. In Georgia, the fiscal 2010 appropriations bills included earmarks which allocated $450,000 to update College Park’s emergency …

A Primer On Antitrust Damages, Herbert J. Hovenkamp

All Faculty Scholarship

This paper considers the theory of antitrust damages and then discusses some simple models for proving them. Antitrust damages theory begins with the premise that many practices alleged to violate the antitrust laws cause no consumer harm. Others are inefficient and have few socially redeeming virtues. Still others may simultaneously increase both the efficiency of the participants and their market power. A perfectly designed antitrust policy would exonerate the first set of practices, condemn the second set, and condemn the third set only when the social cost of the restraint exceeds its social value or they produce net harm to …

Quantification Of Harm In Private Antitrust Actions In The United States, Herbert J. Hovenkamp

All Faculty Scholarship

This paper discusses the theory and experience of United States courts concerning the quantification of harm in antitrust cases. This treatment pertains to both the social cost of antitrust violations, and to the private damage mechanisms that United States antitrust law has developed. It is submitted for the Roundtable on the Quantification of Harm to Competition by National Courts and Competition Agencies, Organization for Economic Cooperation and Development (OECD), Feb., 2011.

In a typical year more than 90% of antitrust complaints filed in the United States are by private plaintiffs rather than the federal government. Further, when the individual states …

A Little Respect, Please, Christina Cerna

Human Rights & Human Welfare

Simon Tisdall suggests that last month, when Mohammed Bouazizi (twenty-six years old), “an unemployed graduate, set himself on fire outside a government building in protest at police harassment,” his act became the “rallying cause for Tunisia’s disaffected legions of unemployed students, impoverished workers, trade unionists, lawyers and human rights activists.” The reaction to his act of self-immolation and death on January 4th led to the flight of President Ben Ali ten days later to Saudi Arabia and to the end of Ali's twenty-three-year rule of Tunisia. Time reported the event as follows: “When Mohamed Bouazizi set himself alight on Dec. …

Antitrust And Patent Law Analysis Of Pharmaceutical Reverse Payment Settlements, Herbert J. Hovenkamp

All Faculty Scholarship

Patent settlements in which the patentee pays the alleged infringer to stay out of the market are largely a consequence of the Hatch-Waxman Act, which was designed to facilitate the entry of generic drugs by providing the first generic producer to challenge a pioneer drug patent with a 180 day period of exclusivity. This period can be extended by a settlement even if the generic is not producing, and in any event all subsequent generic firms are denied the 180 day exclusivity period, significantly reducing their incentive to enter.

The Circuit Courts of Appeal are split three ways over such …

Innovation Cooperation: Energy Biosciences And Law, Prof. Elizabeth Burleson

Prof. Elizabeth Burleson

This Article analyzes the development and dissemination of environmentally sound technologies that can address climate change. Climate change poses catastrophic health and security risks on a global scale. Universities, individual innovators, private firms, civil society, governments, and the United Nations can unite in the common goal to address climate change. This Article recommends means by which legal, scientific, engineering, and a host of other public and private actors can bring environmentally sound innovation into widespread use to achieve sustainable development. In particular, universities can facilitate this collaboration by fostering global innovation and diffusion networks.

Cancun Climate Negotiations, Prof. Elizabeth Burleson

Prof. Elizabeth Burleson

The United Nations Climate Change Conference, held from November 29 to December 11, 2010, in Cancún, Mexico, relaunched the United Nation's multilateral facilitation role.

Can Allocation By Sortition Resolve The Connecticut Education-Financing Impasse?, A. E. Rodriguez, Lesley Denardis

Political Science & Global Affairs Faculty Publications

It has been over 40 years since Connecticut amended its Constitution to ensure citizens a right to a free public education. Despite the constitutionally prescribed right, dramatic inequities in educational conditions continued to characterize the state's K-12 educational system, especially between suburban/rural white and urban minority school districts. In the 1970s plaintiffs challenged the prevailing mechanism for allocating education funds with a host of court cases that tackled the thorny question of how much financial responsibility the state should assume to equalize the spending disparities between school districts. Prodded by court decisions, many formulas and approaches have been proposed by …

The Political Economy Of Fraud On The Market, William W. Bratton, Michael L. Wachter

All Faculty Scholarship

No abstract provided.

Promoting The Buildout Of New Networks Vs. Compelling Access To The Monopoly Loop: A Clash Of Regulatory Paradigms, Christopher S. Yoo

All Faculty Scholarship

No abstract provided.

Antitrust And Innovation: Where We Are And Where We Should Be Going, Herbert J. Hovenkamp

All Faculty Scholarship

For large parts of their history intellectual property law and antitrust law have worked so as to undermine innovation competition by protecting too much. Antitrust policy often reflected exaggerated fears of competitive harm, and responded by developing overly protective rules that shielded inefficient businesses from competition at the expense of consumers. By the same token, the IP laws have often undermined rather than promoted innovation by granting IP holders rights far beyond what is necessary to create appropriate incentives to innovate.

Perhaps the biggest intellectual change in recent decades is that we have come to see patents less as a …

Reconsidering International Tax Neutrality, Michael S. Knoll

All Faculty Scholarship

For decades, U.S. international tax policy has shifted back and forth between territorial-source-exemption taxation and worldwide-residence-credit taxation. The former is generally associated with capital import neutrality (CIN) and the latter with capital export neutrality (CEN). One reason why national tax policy has shifted back and forth between those benchmarks is because it is widely accepted that a tax system cannot simultaneously satisfy both CEN and CIN unless tax rates on capital are harmonized across jurisdictions. In this essay, I argue that the international tax literature contains two different and conflicting definitions for CIN. Under one definition, which goes back at …

Notice And Patent Remedies, Herbert J. Hovenkamp

All Faculty Scholarship

In private enforcement systems such as the one for patents, remedies perform the “public” function of determining the optimal amount of protection and deterrence. If every patent were properly granted and had just the right scope to incentivize innovation, then strict enforcement and harsh penalties for infringement would be a good idea. But in a world where too many patents are granted, their boundaries are often ambiguous and scope excessive, things are not so simple. The expected likelihood and magnitude of the penalty determines the number of infringement suits and the litigation resources that will be poured into them. As …

Effects Of Free Trade Areas In Trade Promotion: Gravity Model Approach, Mona Jit Mui Lim

Dissertations and Theses Collection (Open Access)

Since the early 1990s, the world has seen a proliferation of Free Trade Agreements (FTAs). One of the key objectives of FTAs is to expand trade between or amongst its signatories. This study explores the intra-FTA and extra-FTA trade expansion capability of 3 types of FTA: North-North FTA (European Union (EU)-15 as a representative), North-South FTA (North America Free Trade Agreement (NAFTA) as a representative) and South-South FTA (Association of Southeast Asia Nations (ASEAN ) Free Trade Agreement (AFTA) as a representative). The study made an attempt to address the spread of such FTA-led trade expansion amongst the members and …

Introduction To Creation Without Restraint: Promoting Liberty And Rivalry In Innovation, Christina Bohannan, Herbert J. Hovenkamp

All Faculty Scholarship

This document contains the table of contents, introduction, and a brief description of Christina Bohannan & Herbert Hovenkamp, Creation without Restraint: Promoting Liberty and Rivalry in Innovation (Oxford 2011).

Promoting rivalry in innovation requires a fusion of legal policies drawn from patent, copyright, and antitrust law, as well as economics and other disciplines. Creation Without Restraint looks first at the relationship between markets and innovation, noting that innovation occurs most in moderately competitive markets and that small actors are more likely to be truly creative innovators. Then we examine the problem of connected and complementary relationships, a dominant feature of …

The Wider Context: The Future Of Capital Markets Regulation In Developed Markets, Cally Jordan

Faculty Papers & Publications

At a time of such great turbulence, looking to the future directions of capital markets and their regulation in developed economies is a particularly risky business. We are in the midst of a great sea change. Nevertheless, there are several current, and readily observable, phenomena which are likely to shape capital markets regulation in the near future. First of all, the blurring of the distinctions between developed and developing markets themselves, as well as that between domestic and international markets, has put into question the adequacy of existing regulatory frameworks. Also, the transatlantic dialogue, London – New York, has given …

The Tea Party, The Constitution, And The Repeal Amendment, Randy E. Barnett

Georgetown Law Faculty Publications and Other Works

Given that the Tea Party is a right-of-center movement, it does not take an empiricist to know that most Tea Partiers hold right-of-center views on a variety of issues. This does not mean, however, that the Tea Party movement is about immigration policy or social issues like abortion, any more than the gun-rights movement is about any other beliefs that may be held by a majority of gun-rights advocates. Instead, the Tea Party movement is about two big subjects: first, the undeniable recent surge in national government spending and debt, and second, what Tea Partiers perceive as a federal government …