Finance seminar - Dr Shihe Li - Adelaide University

A seminar by Dr Shihe Li from Adelaide University 

Title: Don’t Dress Like Me: The Value Implications of Trade Dress Protection

Abstract: This paper examines the valuation implications of an important yet underexplored form of intellectual property: trade dress, the overall visual appearance of a product or business. We exploit the Supreme Court’s ruling in Two Pesos, Inc. v. Taco Cabana, Inc. (1992), which strengthened the enforceability of unregistered trade dress. Using a  triple-difference design, we find that retail-reliant firms with relatively limited trademark portfolios experience an increase in market value following the ruling. We attribute the increase in valuation to enhanced trade dress protection rather than to potential changes in financial constraints or corporate governance. The valuation effect is concentrated in industries where imitation risk is most salient, pointing to an imitation mitigation mechanism. We also find that treated firms experience higher profit margins and greater profitability after the ruling, suggesting that the valuation gains reflect improvements in real performance. Moreover, treated firms reoptimize their intellectual property strategies, shifting toward trade dress.

For further information, please contact RSFAS Seminars.

All information collected by the University is governed by the ANU Privacy Policy.