By Fritz Machlup
Read Online or Download An economic review of the patent system (Study of the Subcommittee on Patents, Trade-marks, and Copyrights of the Committee on the Judiciary, United States Senate, study) PDF
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Additional info for An economic review of the patent system (Study of the Subcommittee on Patents, Trade-marks, and Copyrights of the Committee on the Judiciary, United States Senate, study)
Sample text
367-368. In Alfred Marshall, Industry and Trade: A Study of Industrial Technique and Business Orgsnization (London: 19191, p. 534. lm John Bates Clark, op. , supra, note 151, p. 362. 1% Lionel Rohbins, op. , supTa, note 145, p. 73. Floyd L. Vaughan, Economm of Our Patent System (1925). P. 106. 1s Arthur Robert Bums, The Decline of Competition (lQ36), p. 11. 1~ F. A. Hayek, The Road to Serfdom (London: 19441, p. 28. AN E ~ N O ~REMEW C OF THE PATENT S Y S T E ~ 29 The argument that the patent monopoly secures a just reward to the inventor is entirely absent from modern economic literature.
Supra, note 141, p. 222. 1" 1" '" 34 A N BCONOMIC REVIEW OF THE PATENT SYSTEM Frank W. " He questions the proposition thatmen contrived simply because this was conducive t o gain, and would not contrive unless prompted by the esperience and prospect of g a ~ n . ~ ~ ~ He holdsthat there is an instinct of contrivance, and that there is a keen satisfaction in following it. In0 Taussig does not come to this conclusion. For, even if the patent system is not needed to stimulate men to invent, and even if the total amount of invention would be the same with or without a patent system, the system may still be important in redirecting inventive activity into the most useful channels: The defenders of patent legislation often descant on the public's benefit from inventions as if there were a special moral desert on the part of the,projecton and patentees.
Investment in industrial research, development and innovation will not appear promising in vie= of the supposedly imminent advent of competition. Inventions will be suppressed if the time for the amortization of the required new investments seems too short. * * * we may point to the possibility of the opposite error, the overoptimistic entrepreneur who underestimates the actual degree of pliopoly [i. , nemomers' competition] and overestimates the safe period. He need not be an actual monopolist, nor even imagine that he is one; i t suffices that he believes it will take his competitors-imitators or makers of substitutes-longer than i t actually does to start competing with him.
An economic review of the patent system (Study of the Subcommittee on Patents, Trade-marks, and Copyrights of the Committee on the Judiciary, United States Senate, study) by Fritz Machlup
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