ip rs and digital domain

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Intellectual Property, Business Models and the Digital Domain: A Survey -Prashant Kulkarni Asst. Professor Indus Business Academy-Bangalore Presentation at 2 nd Researcher’s Confluence on Intellectual Property Rights at S. J. Mehta School of Management, IIT Mumbai, February, 2011

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With the internet and the accompanying digital revolution challenging the conventional industrial information structure, relationship between various dominant actors stands redefined. Intellectual Property Rights, as originally conceived and subsequently enforced, seems incompatible with the digital business models. Therefore we do see legal battles over what seems on face of it trivial issues. A situation is being resulted where societies priding themselves on free expression and creativity, actually are ending up stifling it. The current paper traces the growth of the digital revolutions, changes in the industry and product structures and surveys the alternative models that safeguard innovator interests and encourages creativity.

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Page 1: Ip rs and digital domain

Intellectual Property, Business Models and the Digital Domain: A Survey

-Prashant KulkarniAsst. Professor

Indus Business Academy-Bangalore

Presentation at 2nd Researcher’s Confluence on Intellectual Property Rights at S. J. Mehta School of Management, IIT Mumbai, February, 2011

Page 2: Ip rs and digital domain

Economic Activities and Change

– Internet and digital revolution• Pigeons/smoke-signals to internet

– Diffusion of information within the society• 70% of wealth accumulated in the rich economies is in

the form of intangible, knowledge based assets (Gelder, 2006)

– Access to information (Assets)• Shift from the private corporations/State to Civil Society?

– Recrafting Global Trade Rules?• Political Economy of TRIPS

Page 3: Ip rs and digital domain

IP Literature and Tradition Business Models

• Weak foundations– System independent of space and time– Right holders’ limited-term monopoly and public

benefit of unhindered access to scientific records and cultural traditions

• Ignores key ownership questions

• Shifting battlefield– Digitization of copyrights

Page 4: Ip rs and digital domain

IP and Digital Environment

• Weak cross border regulations; liberal cross border flows

• Authority inconsistent with global realities• Rise of non market and non proprietary

means of production• Incompatibility of IPRs and Digital economy

– Danny Quah’s characteristics

Page 5: Ip rs and digital domain

Digital Alternatives

• Open Business Models (Chesbrough , 2003)– Recognize the value of ideas being generated

outside the boundaries of the firm– Business-dependent value of IP is crucial for its

effective utilization

Page 6: Ip rs and digital domain

Piracy is Good Lessig (2005)

• Creativity vs Creativity (new regimes challenge the old)– Amateur creativity as collateral damage– Copyright wars criminalize creativity, drives piracy

underground become corrosive

• Brazil’s experience• Deregulate and decriminalize

Page 7: Ip rs and digital domain

Apple’s iTunes

• P2P vs traditional music industry• Apple’s way –iTunes

– Autonomy of choice– Freedom from legal hassles

Page 8: Ip rs and digital domain

Conclusions

• Digital technologies serve as engines of cultural innovation

• Technology is per se neutral• Reconciling and adapting their interests for

both corporations and government will determine the future of the digital era

Page 9: Ip rs and digital domain

Questions????

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