Abstract
Abstract This paper explores the effect of software intellectual property rights (IPRs) on the performance of software firms in South Korea using the statistics of software copyright registrations and patent applications along with the financial statements of firms. According to our empirical results, RD firms in the software industry prefer to copyrighting, whereas firms in the manufacturing industry prefer to patenting. In addition, software copyrighting has a positive effect on software revenue and total revenue of firms, but software patenting fails to show a positive effect on software revenue. Consequently, in contrast to the prevailing consensus indicating a high preference for patenting, it is obvious in our analysis that software copyrighting is more beneficial for software firms.
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