Patents overview Flashcards
Property rights over an invention
Patents
What does Patents confer
Exclusive right to comercially exploit an invention for a limited time period
6 facts about a Patent
- Granted to whom put resources in the invention
- Granted for a limited amount of time
- Conditional on fulfilling the requirments
- The right arises at the end of the procedure
- Once given, disclosure of the invention
- Once expired, everyone can use it at no cost or delays
What are IPRs or IPs
Intellectual Property Rights: rights for intellectual work and human creativity
Making, using, selling (offering), importing products
Commercial exploitation
Non-commertial uses for academic research/teaching or privite use are allowed (experimental)
True
How can the patent be commercially exploited by others
If the rights are re-assigned, sell or licensed.
Global Hub of patent filing
Asia (most from Korea, Japon and China)
2021 Top 5 Patents Offices
- SIPO: China National Intellectual Property Administration
- USPTO: United States Patent and Trademark Office
- JPO: Japan Patents office
- Kipo: Korea Intellectual Property office & Utility models
- EPO: European Patent Office
In relation to Digital communications, Technology field and Computer Tech where were most filed patents:
Digital: China and Korea
Computer tech: US
Electrical machinery: Japan and Germany
Member States of EPO
38 member states
2 extention states
5 validation states
Order of Hisorical events related to Patents
1474 Senate of the Republic of Venice
1625 England: Monopoly Patent Statute
1852 England established the first patent office
1883 Paris convention
1474 Senate of the Republic of Venice
o First known law for patent granting
o Invention evaluation, max duration, disclousure w/apprentices
o Only valid in Venice, could patent something not known in venice.
1625 England: Monopoly Patent Statute
o Fragmented legislation
o Each states different norms, could patent an invention from other state, so state competitions
o Evaluation of utility by comettee of wise men
1883 Paris convention
o International protocol. Common rules on what is patentable.
o Each state recognizes the rights of inventions filed in other states
o Only what has never been invented before in all signatory states is new).
o It is still in force and the member countries of the WTO need to adhere.
Economic rationale, classification of goods:
- Tangible (private/rival)
- Intangible
Intangible goods are:
a. non-rival: the use of a person does not hamper use of another
b. non-excludable: you cannot make the person ‘unlearn’
so, imperfectly appropriable!
Describe the Economic problem
1. Economic growth and innovation
o Economic growth depends on productivity (extract value from resources)
o Innovation effectively exploids resources and generates Economic growth.
o R&D expensive, Results uncertain and could be copied.
Solution of Economic problem 1. Economic growth and innovation
Grant an exclusive right to those who put effort/resources in the inventive activity in order to:
1. Payback R&D costs
2. Incentivize future R&D
Describe the Economic problem 2. Monopoly
- Dead weight Loss DWL
- Market price is higher than under perfect competition.
- Underused capacity
- Lost welfare
- Wasteful invention
Solution of Economic problem 2.Monopoly
o Temporary exclusive right (Max 20 years)
o Limit the right by Scope/breadth (content) and Location (geographic coverage)
o Require disclosure in exchange: enable society to copy immediately in countries not covered by patent and after expiry in countries that are covered.
Is the number of years in which the right to exclusivity is ensured
Duration
Number of varians of innovation protected by a single patent
Breath
Positive finite number; short if inelastic demand;short if breath big; big if R&D high costly.
How economist think case by case should be evaluated to define opltimal duration