The Copyright Act of 1976 confers on authors an exclusive right to prepare derivative works. It defines this term as “a work based upon one or more preexisting works,” giving nine examples to illustrate the concept and ending with “or any other form in which a work may be recast,...

Intellectual property, contract, and tort laws likely have effects on levels of innovation in service sectors of the economy. Legal rules that are too strong or too strict may discourage investment in service innovation; yet, rules that are too weak or too loose may result in suboptimal...