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ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
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http://hdl.handle.net/10419/55348
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| Title: | | Cutting too close? Design protection and innovation in fashion goods  |
| Authors: | | Hackett, Petal Jean |
| Issue Date: | | 2012 |
| Series/Report no.: | | CESifo working paper: Industrial Organisation 3716 |
| Abstract: | | Continued lobbying by high-end, American designers for intellectual property-type fashion design protection has culminated in the proposed Innovative Design Protection and Piracy Prevention Act, intended to introduce EU standards. Using a sequential, 2-firm, vertical differentiation framework, we analyze the effects of protection on investment in innovative designs by high-quality (designer) and lower-quality (mass-market) firms when the mass-marketer may opt to imitate, consumers prefer trendsetting designs and firms compete in prices. We show that design protection, by transforming mass-marketers from imitators to innovators, may reduce both designer profits and welfare. The model provides possible explanations for the dearth of EU case law and the increase in designer/mass-marketer collaborations. |
| Subjects: | | intellectual property rights fashion design protection imitation licensing |
| JEL: | | D21 L13 O31 O34 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
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