Business Strategies in Intellectual Property Rights: An Example of Patent Disputes Solutions in the Taiwan High-Tech Industry

Abstract

Under the trend of knowledge based economy, knowledge innovation is updating and changing every minute that the intellectual property related technology, management and legal protection mechanism have become the core of business competitive in high tech industry. Due to the fact that the design of the legal mechanism is often unable to catch up with the speed of intellectual property right, therefore it is improperly used as a strategy of business competition and makes the conflicts rooted from legal remedies, which further caused an unbalanced legal system. This research attempts to use the cobweb theory as the time series model to take the binding power and legal effectiveness as the coordinate axis to explore how business managers present the constant change of over production or shortage on the coordinate axis, under legal rationality and economic rationality. We found that the system may effectively adapt to the rapid change of the environment, under the premise to respect the rule of law, in contrast to sending cease and desist letter, issuing injunction order, and litigation, business managers mostly choose the arbitration, which may regulate the differences between the procedure justice and substantive justice, it allows the system to maintain at equilibrium point.