Patent scope, antitrust policy, and cumulative innovation
Article Abstract:
Patent infringement is a legal problem that is often left to the courts for resolution. This problem is more likely to arise as a result of innovations that improve upon existing products. A model of cumulative innovation that describes such a process is developed. The proposed framework aims at deriving legal standards for infringement such that cumulative innovation is not stifled. The results indicate that patent protection should be extended to both products with a high stand-along value and those with lower values relative to future improvements.
Publication Name: RAND Journal of Economics
Subject: Economics
ISSN: 0741-6261
Year: 1995
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Patent policy and costly imitation
Article Abstract:
Optimal patent policy under a situation where imitation is costly but not impossibly expensive is discussed. It is shown that extending patent life may not be the best policy since it may, contrary to common belief, encourage rivals to imitate and circumvent regulations resulting in the dissipation of expected profits of the patentee. A successful patent policy would prohibit, in the first place, any imitation during the life of the patent. In this case, duration of the patent would be fixed and adjusted to the level of desired profits.
Publication Name: RAND Journal of Economics
Subject: Economics
ISSN: 0741-6261
Year: 1992
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The crowding-out effects of long duration of patents
Article Abstract:
An analysis of the crowding out effects of long patent duration is presented. It is shown that such duration influences new product development investment. An ovelapping-generations model describing saving, investment and product innovation is developed. The model shows that long duration generates high aggregate value of monopolists which compete for younger firms' investment resources.
Publication Name: RAND Journal of Economics
Subject: Economics
ISSN: 0741-6261
Year: 1993
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