Intellectual property for commercial ideas in technology markets: A system dynamics model

Abstract

Traditional intellectual property principles hold that ideas themselves must not be appropriated. Nevertheless, within open and collaborative dynamics, ideas are traded in technology markets for a stand-alone value. Contract-based exchanges to appropriate these ownerless resources take place in the market for unprotected ideas. Due to their lack of legal protection, these transactions are non-optimal and lead to economic inefficiency. A system dynamics simulation model was developed to determine the factors and causal relations that contribute to this problem. Using the scenarios technique, the model was intervened with possible legal solutions from the intellectual property system. From the results, a sui generis legal right for commercial ideas is proposed to foster the open dynamic and optimize the legal and economic conditions of technology markets for these creative assets. This interdisciplinary scheme provides a framework for future intellectual property legislation and public policies, as for further academic discussions in the field.