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Economics and patents
Patents are legal instruments intended to encourage innovation by providing a limited monopoly to the inventor (or their assignee) in return for the disclosure of the invention.〔"()" http://www.uspto.gov/web/menu/intro.html → Article 1, Section 8 of the United States Constitution〕 The underlying assumption is that innovation is encouraged because an inventor can secure exclusive rights, and therefore a higher probability of financial rewards in the market place. The publication of the invention is mandatory to get a patent. Keeping the same invention as a trade secret, rather than disclose by publication, could prove valuable well beyond the time of any limited patent term, but at the risk of congenial invention through third party.
== Costs, benefits, risks of the patent system to the public ==
The patent system is designed to encourage innovation. This is because patents, by conferring rights on the owner to exclude competitors from the market, presumably offer the incentive for people to study new technology.
In some fields, particularly pharmaceuticals, it is also argued that the monopoly of the patent in the market allows the owner recover the huge expenses invested in the research and development phase.
While patent offices in the economically advanced world have numerous procedures in effect to determine the validity and proper scope of a patent application, nevertheless some patents still issue that are not an advance on the existing state-of-the-art, or would otherwise be invalid if challenged. The system corrects these mistakes by maintaining the right to nullify inappropriately issued patents. However, only very small fraction of patent disputes ever go to court because of high litigation costs. A study in 2005 showed that among 200,000 patents that are issued every year, only 1.5 percent of patents are ever litigated, and only 0.1 percent of patents are ever litigated to trial. This means the majority of patent disputes are either overlooked or settled privately. While private settlement is a cost-effective way to balance the commercial interests of two firms, the public does not benefit from it. Because of the ''private'' nature of such settlements, there is no open discussion that would clarify the scope of rights under a particular patent and the opportunity to invalidate the patent is lost. Other competitors do not benefit, and costs across the industry are not reduced.
抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』
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