Purchase Solution

Patent System

Not what you're looking for?

Ask Custom Question

Government involvement in general scientific research has been justified on the grounds that advances in knowledge are public goods- once produced, information can be shared at virtually no cost. A new production technology in an industry could be available to all firms, reducing costs of production, driving down price, and benefiting the public. The patent system, however, allows private producers of "new knowledge" to exclude others from enjoying the benefits of that knowledge. Inventors would have little incentive to produce new knowledge if there were no possibility of profiting from their inventions. If one company holds exclusive rights to an advanced production process, it produces at lower cost but can use the exclusion to acquire monopoly power and hold price up.

A) On balance, is the patent system a good or bad thing? Explain.

B) Is government involvement in scientific research a good idea? Discuss.

Purchase this Solution
Solution Summary

The solution answers the question below.

Solution Preview

A) On balance, is the patent system a good or bad thing? Explain.
In my opinion a patent system is not a good thing. This is because of exactly the reasons already stated - that it prevents others from enjoying the fruits of new knowledge and may lead to formation of monopolies or cartels. Imagine that a pharmaceutical company in the US develops a drug that can kill the HIV virus in patients who are suffering ...

Purchase this Solution
Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

View More Free Quizzes
Related BrainMass Solutions

  • Patents: Why Does the Government Grant Monopoly Power?

    508041 Why does the government create monopoly power via its patent system? Why does the government create monopoly power via its patent system, when elsewhere it spends millions trying to prevent the emergence of or regulate monopoly power?

  • A discussion of government's role in patent policy

    I suppose that in a sense the patent system is a way of dealing with a public goods dilemma.

  • Discusses and defines current copyright and patent laws and their relationship to new technology

    Others argue, just as strenuously, that the current patent system is working fine, and that it will adapt to this new technology, just as it has adapted to new technology many times before.

  • Uses of Laws of Thermodynamics

    The first law states that the change in total energy of a system is equal to the energy added to the system minus the work done by the system.

  • Protection of TRADEMARK, OPERATING SYSTEM, AND APPLICATION

    Let us first start with Patent. Lego can acquire patent on its proprietory software technology, invention and the operating system.

  • Science, Patents, and the Government

    You will need to decide for yourself whether the patent system is worthwhile. The statement you are given seems rather unbalanced (against the patent system) so I will provide an alternative view.

  • Patent system

    247228 On balance, is the patent system a good or bad thing A) On balance, is the patent system a good or bad thing? Explain. B) Is government involvement in scientific research a good idea? Discuss A.

  • Externality

    In what way does the patent system help society solve an externality problem?

  • Patent Law Case

    Setonia can claim protection under the provisions of the U.S. law that uses the first-to-invent system. Setonia can get patent protection because its date of invention will be the date of conception.

View More Related Solutions