The Battle Over Patents

An examination of how the patent system works, imperfections and all, to incentivize innovation Do patents facilitate or frustrate innovation? Lawyers, economists, and politicians who have staked out strong positions in this debate often attempt to validate their claims by invoking the historical record--but they frequently get the history wrong. The Battle over Patents gets it right. Bringing together thoroughly researched essays from prominent historians and social scientists, this volume traces the long and contentious history of patents and examines how they have worked in practice. Editors Stephen H. Haber and Naomi R. Lamoreaux show that patent systems are the result of contending interests at different points in production chains battling over economic surplus. The larger the potential surplus, the more extreme are the efforts of contending parties-now and in the past-to search out, generate, and exploit any and all sources of friction. Patent systems, as human creations, are therefore necessarily ridden with imperfections. This volume explores these shortcomings and explains why, despite all the debate, historically US-style patent systems still dominate all other methods of encouraging inventive activity.

The Battle over Patents traces the long and contentious history of patents, examining how they have worked in practice. The essays in this volume, written by leading social scientists, historians, and legal academics, explore the shortcomings of imperfect patent systems and explain why, despite all the debate, historically US-style patent systems still dominate all other methods of encouraging inventive activity.

"Do patents facilitate or frustrate innovation? Lawyers, economists, and politicians who have staked out strong positions in this debate often attempt to validate their claims by invoking the historical record-but they typically get the history wrong. The purpose of this book is to get the history right by showing that patent systems are the product of contending interests at different points in production chains battling over economic surplus. The larger the potential surplus, the more extreme are the efforts of contending parties, now and in the past, to search out, generate, and exploit any and all sources of friction. Patent systems, as human creations, are therefore necessarily ridden with imperfections; nirvana is not on the menu. The most interesting intellectual issue is not how patent systems are imperfect, but why historically US-style patent systems have come to dominate all other methods of encouraging inventive activity. The answer offered by the essays in this volume is that they create a temporary property right that can be traded in a market, thereby facilitating a productive division of labor and making it possible for firms to transfer technological knowledge to one another by overcoming the free-rider problem. Precisely because the value of a patent does not inhere in the award itself but rather in the market value of the resulting property right, patent systems foster a decentralized ecology of inventors and firms that ceaselessly extends the frontiers of what is economically possible"--

This essay is the introduction to a book of the same title, forthcoming in summer of 2021 from Oxford University Press. The purpose is to document the ways in which patent systems are products of battles over the economic surplus from innovation. The features of these systems take shape as interests at different points in the production chain seek advantage in any way they can, and consequently, they are riven with imperfections. The interesting historical question is why US-style patent systems with all their imperfections have come to dominate other methods of encouraging inventive activity. The essays in the book suggest that the creation of a tradable but temporary property right facilitates the transfer of technological knowledge and thus fosters a highly productive decentralized ecology of inventors and firms.

From the "Diaper Wars" that pitted Procter & Gamble against Kimberly-Clark to disputes over high-temperature superconductors, veteran technology writer Fred Warshofsky tracks patent litigation's path to becoming one of the most potent financial tools of the 1990s. The stakes are enormous. For example, Honeywell Inc. more than doubled its net income for the third quarter of 1992 despite lower operating revenue by winning some dozen patent infringement suits against Japanese camera makers, including a tidy $96 billion from Minolta. Japanese companies frequently win. In a revealing analysis of the patent wars in Japan, Warshofsky shows how Japanese industries surround basic patents with clusters of patent modifications. In the global winner-take-all battle, this strategy gives them effective control over the licensing and usefulness of the original invention. The patent game becomes more complicated with the development of each new product and technology. Nowhere is the phenomenon more evident than in software, semiconductors, and biotechnology. Warshofsky delves into each of these highly sophisticated industries. In the software industry, for instance, Warshofsky dissects patent battles such as Apple v. Microsoft and Borland v. Lotus that have made front-page headlines. The Patent Wars is the first book to take an incisive look at this new business offensive and its consequences, including hackers and piracy in cyberspace. As more and more companies deliberately strive to prohibit competition and innovation, this stimulating and highly informative book will become essential reading for people in business and finance, technology-watchers, and policymakers.

Over the past thirty years, the world’s patent systems have experienced pressure from civil society like never before. From farmers to patient advocates, new voices are arguing that patents impact public health, economic inequality, morality—and democracy. These challenges, to domains that we usually consider technical and legal, may seem surprising. But in Patent Politics, Shobita Parthasarathy argues that patent systems have always been deeply political and social. To demonstrate this, Parthasarathy takes readers through a particularly fierce and prolonged set of controversies over patents on life forms linked to important advances in biology and agriculture and potentially life-saving medicines. Comparing battles over patents on animals, human embryonic stem cells, human genes, and plants in the United States and Europe, she shows how political culture, ideology, and history shape patent system politics. Clashes over whose voices and which values matter in the patent system, as well as what counts as knowledge and whose expertise is important, look quite different in these two places. And through these debates, the United States and Europe are developing very different approaches to patent and innovation governance. Not just the first comprehensive look at the controversies swirling around biotechnology patents, Patent Politics is also the first in-depth analysis of the political underpinnings and implications of modern patent systems, and provides a timely analysis of how we can reform these systems around the world to maximize the public interest.

This book, first published in 2005, examines the evolution and impact of American intellectual property rights during the 'long nineteenth century'.

Patents are ubiquitous in contemporary life. Practically everything we use incorporates one or more patented inventions, and recent years have witnessed epic disputes over such matters as the patenting of human genes, the control of smartphone design and technology, the marketing of patented drugs, and the conduct of "patent trolls" accused of generating revenue from nuisance litigation. But what exactly is a patent? Why do governments grant them? Can patents simultaneously encourage new invention, while limiting monopoly and other abuses? In Patent Wars, Thomas Cotter, one of America's leading patent law scholars, offers an accessible, lively, and up-to-date examination of the current state of patent law, showing how patents affect everything from the food we eat to the cars we drive to the devices that entertain and inform us. Beginning with a general overview of patent law and litigation, the book addresses such issues as the patentability of genes, medical procedures, software, and business methods; the impact of drug patents and international treaties on the price of health care; trolls; and the smartphone wars. Taking into account both the benefits and costs that patents impose on society, Cotter highlights the key issues in current debates and explores what still remains unknown about the effect of patents on innovation. An essential one-volume analysis of the topic, Patent Wars explains why patent laws exist in the first place and how we can make the system better.