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Question:
The degree to which a firm can capture the rents from its innovation efforts is largely determined by the degree to which competitors can quickly and easily imitate the innovation. Some innovations are inherently difficult to copy; others are difficult to copy because of the mechanisms the firm uses to protect its innovation. The three primary legal mechanisms used to protect innovation in most countries are patents, trademarks, and copyrights. Each mechanism is designed to protect a different type of work or good.
Respond to the following:
What are the differences between patents, copyrights, and trademarks?
When are trade secrets more useful than patents, copyrights, or trademarks?
What factors should a firm consider in formulating its protection strategies for an innovation that will be marketed in multiple countries?
Give examples in your answers.
Verified Expert
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