As mentioned earlier, patents are exclusive rights given to the producer so that duplicate of the same product doesn’t come in the market. It gives the producer total control of the product (Gordon and Cookfair, 1995). Many producers come into an agreement with the purpose to organize price fixing and gain benefits at the expense of buyers. Since, patents favor monopolist, he or she can sell the product at high prices since there is no substitute for that particular product. How US Patents Laws Decrease and Increase Technological Advancement
US Patent laws encourage new inventions to come into the market. Technological advancement is significant for the reason that commercialization of inventions offers economic advantage from the buying and selling of original and latest goods and services(Auger, 1992). By protecting these original and latest innovative products, the US patent laws are responsible for the growing U. S economy and it is also one of the primary agents in promoting long-lasting economic growth and offering better living standards.
However, in order to stay competitive in the global economy, U. S companies have to recognize and assess patents in order to keep away from unintentional violation (Gordon and Cookfair, 1995). Effects of US Patent Laws on Society The outcomes of academic property monopolies are appalling. Every single dollar which is earned by the privileged industrialists is paid double by the public which is deprived from its civil liberties and privileges to profit from rivalry. Although, patents were supposedly introduced to protect inventors but their real consequence is to make it complicated for inventors to find investors and to place them in a less important circumstances when they find them.
Workers who are responsible for the development of proficiencies which is dependent on the patents find themselves unexpectedly undervalued in the labor market (Gordon and Cookfair, 1995). Patents are responsible for the reduction of number of potential workers since only authorized holder can take the benefit from these proficiencies. Thus, the market for these proficiencies is falsely cut down so that the worker is forced to take lower wages and work under poor conditions. Because of monopolies, consumers are not able to change the direction in which services develop and progress by differential purchase.
The Patent Act has encouraged technological advancement by encouraging people to invent by getting exclusive rights. Moreover, patent laws enable patentees to promote their privately owned innovations during the term of patent. With patent laws, innovation is no longer dependent on consumers but it is more dependent on producer (Gordon and Cookfair, 1995). The overall result for customers is poor quality and high prices and less authority of technological solutions. Monopolists have collaborators such as lawyers and officers who are focused in selling patents.
Patent officers and lawyers take the advantage from the patent laws in their activities which require the public to pay more. Government Control and Inventions in Absence of Patent Law Since patent ownership is supposed to be a motivation and encouragement to improvement, it is considered to be the foundation of technological advancement that promotes economic growth in United States of America. The government controls the patent system in order to promote new products and services in the market. It also generates government revenues (Redmon, 1993).
In absence of patent law system, several free riders can effortlessly copy and develop innovations of others. Additionally, unimaginative imitators can sell the original inventions at lower costs (Redmon, 1993). This was result in the creation of an environment where there would be few inventions. Conclusion Patent laws were developed in United States in order to develop the fields of science and arts and granting exclusive rights to authors and inventors to protect their writings and inventions respectively. Under the US patent law, duplicating an invention which is patented is a serious offense.
Although, the US patent laws have brought forward various types of new inventions in the market in order to promote technological advancement, it has negative effect on perfect competition and oligopolies. It benefits monopolists. It also leads to high price of the product which is controlled by the producer and the consumer. Simultaneously, monopolist producer can also fix the price of the product forcing the consumer to pay large amount of money for the product since no substitute of it exists. Patent laws require government interference in order to generate government revenues.
Also, absence of patent laws can lead to inactive market in terms of technological advancement. References Auger, C. P. Information Sources in Patents. New York, Bowker-Saur. 1992. Grubb, Philip W. Patents for Chemicals, Pharmaceuticals, and Biotechnology: Fundamentals of Global Law, Practice, and Strategy. New York: Oxford. 1999 Gordan, Thomas T. ; Cookfair, Arthur S. Patents Fundamentals for Scientists and Engineers. Boca Raton, CRC Lewis. 1995. Redmon, T. The Inventor’s Handbook on Patent Applications. New York, Vantage Press. 1993.