The Copyright Box Model
Discusses the costs and infrastructure associated with developing a world-class ecosystem to attract outside business that is ready and willing to invest research and development (“R&D”) dollars in foreign jurisdictions. Unfortunately, the outlook is not good. It is expensive, in terms of both human and financial capital, to support a high-tech ecosystem capable of producing a high number of patent applications. Because most patents are not valuable, one might ask if there is a better way for lower income nations to attract outside businesses willing to develop IP. This Article suggests that copyrights are a lower-hanging fruit, and that by providing incentives for copyright development, developing nations will spend less and reap more benefit. Part I will discuss a short history of the patent box. Part II will ask why a copyright box might be preferable. Parts III and IV will discuss criticisms of box schemes, and then look at the OECD’s BEPS project in more detail. Part V will examine what issues will govern the design and implementation of a copyright box.