INTELLECTUAL PROPERTY RIGHTS AND CANNIBALIZATION IN INFORMATION TECHNOLOGY OUTSOURCING CONTRACTS.

Author List: Walden, Eric A.;
MIS Quarterly, 2005, Volume 29, Issue 4, Page 699-A16.
This paper examines the question of how intellectual property rights in the software created during information technology outsourcing relationships should be divided. This paper expands on the property rights approach developed by Grossman, Hart, and Moore by recognizing that, with respect to software, it is possible to separate excludability rights from usability rights. These rights are modeled and the contractually optimal distribution is determined. This model is then modified to account for the possibility of cannibalization of the client's benefit when multiple others are allowed use of the software. The results show that the best contractual structure depends strongly on the environment.
Keywords: Contracts; economic models; interorganizational relationships; outsourcing
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#201 0.183 piracy goods digital property intellectual rights protection presence legal consumption music consumers enforcement publisher pirate producers policies copyright provision profits
#97 0.148 set approach algorithm optimal used develop results use simulation experiments algorithms demonstrate proposed optimization present analytical distribution selection number existing
#143 0.144 value business benefits technology based economic creation related intangible cocreation assessing financial improved key economics assess question created create understanding
#274 0.109 outsourcing transaction cost partnership information economics relationships outsource large-scale contracts specificity perspective decisions long-term develop requirements economic association factors hypotheses
#76 0.108 governance relational mechanisms bpo rights process coordination outsourcing contractual arrangements technology benefits view informal business formal exchange hybrid complementarity flexibility
#16 0.080 infrastructure information flexibility new paper technology building infrastructures flexible development human creating provide despite challenge possible resources specific advances developing
#232 0.078 software development product functionality period upgrade sampling examines extent suggests factors considered useful uncertainty previous called complementarities greater cost present
#191 0.051 model models process analysis paper management support used environment decision provides based develop use using help literature mathematical presented formulation