Why firms do (not) use design rights to protect innovation: A literature review

Abstract

Design in general is inextricably bound to a product and market perspective, however design rights only start to matter in the academic literature. The literature until now has somewhat progressed in understanding as to which and why firms use design rights for protection. To a lesser extent there is an understanding of why firms choose not to register designs. This is a conceptual paper based on a literature review and a small sample of qualitative interviews. Factors influencing design protection dynamics are grouped into four layers, legal and institutional factors, technological and sectoral factors, spatial and locational factors, and firm-related factors. What is most treated in the literature on design rights and their use is the influence of firm-internal factors like the perceived effectiveness of the protection and the costs associated with design rights. Another important factor in the literature is the skewed sectoral distribution which points to a strong influence of technological opportunities as relevant for the use of design rights. What has scarcely been treated in innovation economics but still seems relevant is the overlaps and trade-offs between different forms of protection, geographical scopes of protection and different laws, like the IP law and the unfair competition law.