RELEVANCE OF THE THEORETICAL FOUNDATION OF PROPERTY LAW TO IP

Question 1

What does IP do in relation to externalities?

Answer 1

It creates positive externalities.

Question 2

How are positive externalities controlled in IP?

Answer 2

a. IP creates monopoly rights over the product.
b. Something controls its use.
c. Something controls access.
d. Copyright controls adaptation.

Question 3

What is the purpose of economics in IP?

Answer 3

It helps us understand in which cases monopoly rights can be granted or denied and how this will help counterbalance the positive externalities.

Question 4

Who tries to demystify the concept of externalities?

Answer 4

Ronald Coase in the “Social Cost”.

Question 5

What is discussed in the Coase Theorem?

Answer 5

a. Externalities
b. Trade possibilities
c. Effective bargaining and minimum/no transaction costs
d. Effective outcome
e. Regardless of the initial allocation of property rights.

Question 6

Explain effective bargaining and minimum/no transaction costs as explained in the Coase theorem.

Answer 6

Effective outcomes are reached regardless of the initial allocation of property rights.

Question 7

What is the conjunctive test for the public goods theory?

Answer 7

Resources under the theory are:
a. Designed for social benefit.
b. Non-excludable
c. Non-rivalrous

Question 8

Can public goods be excluded?

Answer 8

Yes but it is prohibitively costly.