Tuesday, May 22, 2012

C. P. Chandrasekhar - "Patents seem to limit rather than promote innovation."

These tendencies reflect the fact that patents are now increasingly being acquired not to promote invention and innovation, but to push for division of the large surpluses garnered by one or more companies in particular areas where a winner-takes-all syndrome prevails. In the process, small players with new ideas are unwilling to commercialise them, for fear of having to finance costly litigation. Patents seem to limit rather than promote innovation.
Read it at TripleCrisis
Patent Truths
By C. P. Chandrasekhar

Alex Tabarrok (Marginal Revolution) also discusses this issue and potential solutions in his book, Launching The Innovation Renaissance. In theory, both sides of the political aisle should be willing to get behind proposals that aim to transform patent laws back into a means of supporting “creative destruction.” Conservatives can oppose the broad extension of government interference in the market. (Modern) Liberals can oppose the usage to enforce monopolies that aid increasing income inequality. That these considerations are rarely considered, if even discussed, is a reminder that big government and big business generally work together to support and increase each other’s power.  

1 comment:

  1. Of course, if you are not open to competition and challenge it will become a limit to every one who wants to make a patent of a product.