Property rights protection of biotechnology innovations


Journal Article

Protection of intellectual property embedded in self-replicating biological innovations, such as genetically modified seed, presents two problems for the innovator: the need for copy protection of intellectual property and price competition between new seed and reproduced seed. We consider three regimes in two periods with asymmetric information: short-term contracts, biotechnological protection, and long-term contracts. We find that piracy imposes more intense competition for seed sales than does durability alone. Technology protection systems yield highest firm profit and long-term contracts outperform short-term contracts. Farmers prefer, in order, long-term, short-term, and biotechnical protection. Depending on monitoring cost, long-term contracts may be socially preferred to short-term contracts, with both preferred to biotechnical protection. © 2005 Blackwell Publishing.

Full Text

Duke Authors

Cited Authors

  • Burton, DM; Love, HA; Ozertan, G; Taylor, CR

Published Date

  • December 1, 2005

Published In

Volume / Issue

  • 14 / 4

Start / End Page

  • 779 - 812

International Standard Serial Number (ISSN)

  • 1058-6407

Digital Object Identifier (DOI)

  • 10.1111/j.1530-9134.2005.00083.x

Citation Source

  • Scopus