patent

Examples of patent in the following topics:

• Legal Barriers

  • The government creates legal barriers through patents, copyrights, and granting exclusive rights to companies.
  • Intellectual property rights, including copyright and patents, are an important example of legal barriers that give rise to monopolies.
  • During the term of the patent, the patent holder has the right to exclude others from making, using, or selling the patented invention.
  • When a patent expires and the invention enters the public domain, others can build on the invention.
  • For example, when a pharmaceutical company first markets a drug, it is usually under a patent, and only the pharmaceutical company can sell it until the patent expires.

• Investing in Research and Development

  • The government can do so by creating a good structure of intellectual property protection, called, broadly, patent law.
  • This atom will first discuss how the government can establish a patent system, and then ways in which it can directly affect the level of research and development in an economy.
  • Patents are temporary monopolies granted to inventors by the government, in exchange for public disclosure of how the invention works.
  • Essentially, a patent gives the holder the right to exclude others from, among other things, using, selling, and making the claimed invention.
  • Patents and, more broadly, intellectual property rights, are important because they encourage investment in research.

• Entry Barriers

  • The term can refer to hindrances a firm faces in trying to enter a market or industry—such as government regulation and patents, or a large, established firm taking advantage of economies of scale—or those an individual faces in trying to gain entrance to a profession—such as education or licensing requirements.
  • The most important barriers are economies of scale, patents, access to expensive and complex technology, and strategic actions by incumbent firms designed to discourage or destroy new entrants.
  • Pharmaceutical manufacturers are one type of company that generally rely on patents, which makes competition irrelevant for a period of time after development: competitors can't legally begin manufacturing the product until the patent expires.

• Monopoly

  • ALCOA's monopoly in aluminum was at first due to a patent on a low cost process to reduce bauxite into aluminum.
  • After the patent expired, their ownership of bauxite reserves allowed them to maintain their monopoly position.
  • Knowledge about a process may kept secret (rather than using a patent since patent information is publicly available).
  • Legal barriers such as license, franchise, patent, copyright, etc.
  • Other methods of making aluminum are possible but cannot compete with the method pioneered and patented by ALCOA.

• Unfair Competition Argument

  • Patents, in a domestic system, protect the innovator to allow them to generate returns on the substantial time investment required to invent or innovate new products or technologies.
  • This results in copycats violating the patents in an environment where the infrastructure domestically will probably not take legal action.
  • This is addressed through international patent laws and trade agreements as well, alongside political pressures such as raising tariffs and placing import quotas on countries suspected to be in violation of patents.

• Entry and Exit of Firms

  • Patents give a firm the legal right to stop other firms producing a product for a given period of time, and so restrict entry into a market.
  • Patents are intended to encourage invention and technological progress by guaranteeing proceeds as an incentive.
  • A patent is an example of an intangible asset with a limited life.
  • Patents are an example of intellectual property.

• The Capital Account

  • Non-produced and non-financial assets include things like drilling rights, patents, and trademarks.

• The New Nation's Economy

  • The Constitution provided that the federal government could regulate commerce with foreign nations and among the states, establish uniform bankruptcy laws, create money and regulate its value, fix standards of weights and measures, establish post offices and roads, and fix rules governing patents and copyrights.

• Government Action

  • Intellectual property rights such as copyright and patents are government-granted monopolies.

• The Balance of Payments

  • Debt forgiveness would affect the capital account, as would the purchase of non-financial and non-produced assets such as the rights to natural resources or patents.