ABSTRACT
This paper studies how property-rights regimes shape corporate data development. We begin from the nature of data-its informational content and its form-which often do not align, and develop a sequential model in which firms invest by choosing both informational quality and form. We compare two regimes: information-based protection, under which replication at the same or lower quality constitutes infringement, and form-based protection, under which similarity of form constitutes infringement regardless of quality. The analysis yields two main results. First, form protection induces more incremental advances, generating a more congested market but, in most cases, leading to higher quality. Second, when comparing subsidy schemes required to achieve maximal development, form protection proves less costly. These findings remain robust when generalizing the revenue function and extending the timeline. We further examine extensions with spillovers that lower costs for subsequent developers and protection width that restricts entry, and conclude by considering joint protection policies.
Huang, Yichen and Sun, Zhen and Xu, Xinzhen and Zheng, Bozhong, Form vs Information: The Regimes of Data Property Rights (September 14, 2025).
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