Intellectual Property Rightsversus Tax Incentives

Abstract

This study addresses the alternate problems associated with intellectual property: freeriding and monopoly. With respect to the
“anticommons” problems associated with monopoly rights it examines the proposal of Boldrin and Levine (2008, 2015) for the extinguishment of all such intellectual property rights. In this study, a theoretical model of intellectual property production has
been presented as a framework for discussion, in which the specific claims of Boldrin and Levine are considered, a long with a proposal for the extinguishment of intellectual property rights accompanied by a self-funded system of value added taxes and intellectual property tax credits. Finally, it identifies the conditions under which such a system could encourage the production of intellectual property as well as the conditions under which no such tax incentives are required.