Patents Flashcards
Define patents
A right granted by the state, which allows the inventor to exclude anyone else from commercially exploiting their invention for a limited time period
What are the characteristics of patents?
Imitation is forbidden throughout the whole length of the patent. Inventor must disclose the patented innovation. Innovation can be patented only under certain conditions (namely, industrial applicability, novelty, non-obviousness, patentable subject) Patentee: patent is granted to this person Anyone who wants to exploit the innovation commercially must get a license from the patentee). Patents are transferable. Length of patent varies by country
Advantages of patents
They increase the appropriability of returns on R&D and it’s a self selection mechanism which solves the problem of moral hazard because only successful innovations are patented.
Disadvantage of patents
You have to compromise between dynamic efficiency and static efficiency, basically between greater innovational activity and the utilization of knowledge. Also can lead to abuse of monopolies, e.g. pharmaceutical companies.
Difference between utility model and patent
Utility model has a shorter length typically of 7-10 years without the possibility of renewal. The registration process is also simpler, faster and easier to obtain/ maintain. Utility model is better for existing products that have minor improvements.
Copyrights definition
creators have economic and moral rights over their literacy and artistic work and can authorize reproduction in various forms, such as broadcasting, public performance and translating into other languages.
Trademark
distinguishes the goods or services of one company from those of another. Has a guarantee and appeal function and typically used for marketing purposes.
