e-journal
NOTICE FAILURE AND NOTICE EXTERNALITIES
ABSTRACT
The emergence of intangible resources, such as intellectual property illuminates a previously
unrecognized market failure: what we call a “notice externality.” The incentives
of those claiming intellectual property diverge from the social interest. Inventors and
creators can sometimes benefit from obfuscating the scope of rights and keeping others
in the dark about their intellectual property. This article explores the principal causes of
notice failure in the development of intangible resources and offers a multifaceted
framework for diagnosing, preventing, internalizing, and ameliorating its adverse effects.
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