With the internet and the accompanying digital revolution challenging the conventional industrial information structure, relationship between various dominant actors stands redefined. Intellectual Property Rights, as originally conceived and subsequently enforced, seems incompatible with the digital business models. Therefore we do see legal battles over what seems on face of it trivial issues. A situation is being resulted where societies priding themselves on free expression and creativity, actually are ending up stifling it. The current paper traces the growth of the digital revolutions, changes in the industry and product structures and surveys the alternative models that safeguard innovator interests and encourages creativity.

1. Intellectual Property, Business Models
and the Digital Domain: A Survey
-Prashant Kulkarni
Asst. Professor
Indus Business Academy-Bangalore
Presentation at 2nd
Researcher’s Confluence on Intellectual Property Rights at S. J. Mehta School
of Management, IIT Mumbai, February, 2011

2. Economic Activities and Change
– Internet and digital revolution
• Pigeons/smoke-signals to internet
– Diffusion of information within the society
• 70% of wealth accumulated in the rich economies is in the
form of intangible, knowledge based assets (Gelder, 2006)
– Access to information (Assets)
• Shift from the private corporations/State to Civil Society?
– Recrafting Global Trade Rules?
• Political Economy of TRIPS

3. IP Literature and Tradition Business
Models
• Weak foundations
– System independent of space and time
– Right holders’ limited-term monopoly and public
benefit of unhindered access to scientific records
and cultural traditions
• Ignores key ownership questions
• Shifting battlefield
– Digitization of copyrights

4. IP and Digital Environment
• Weak cross border regulations; liberal cross
border flows
• Authority inconsistent with global realities
• Rise of non market and non proprietary
means of production
• Incompatibility of IPRs and Digital economy
– Danny Quah’s characteristics

5. Digital Alternatives
• Open Business Models (Chesbrough , 2003)
– Recognize the value of ideas being generated
outside the boundaries of the firm
– Business-dependent value of IP is crucial for its
effective utilization

6. Piracy is Good
Lessig (2005)
• Creativity vs Creativity (new regimes challenge
the old)
– Amateur creativity as collateral damage
– Copyright wars criminalize creativity, drives piracy
underground become corrosive
• Brazil’s experience
• Deregulate and decriminalize

7. Apple’s iTunes
• P2P vs traditional music industry
• Apple’s way –iTunes
– Autonomy of choice
– Freedom from legal hassles

8. Conclusions
• Digital technologies serve as engines of
cultural innovation
• Technology is per se neutral
• Reconciling and adapting their interests for
both corporations and government will
determine the future of the digital era

9. Questions????
-prashantkulkarni@rediffmail.com

10. Questions????
-prashantkulkarni@rediffmail.com