Publication

This brief argues that because the overall objective of patents should be to increase everyone's welfare, they should be granted only for significant innovations and then only for a limited amount of time. In exploring this proposal, the briefs author examines three basic questions. 1) In the absence of patents, is innovation under-supplied by the marketplace? 2) Does the existence of a patent regime increase innovative output? And 3) do the welfare benefits of the additional innovation that would not have occurred without the existence of patents outweigh the welfare costs associated with the temporary monopolies that patents create? After exploring these questions, the author concludes that at a minimum uncertainty around patent rights should be reduced.