YOU ARE THERE: Implementing a New Patent Framework to Promote Innovation
Senator Patrick Leahy looks on as President Barack Obama signs into law the America Invents Act, a law Leahy had authored with the aim of boosting the rate of U.S. innovation via an overhaul of the nation's patent system. Under the prior law governing patents, property rights to the returns from invention were determined on a "first-to-invent" basis. This meant that if two individuals or companies happened to invent similar products or processes at about the same time, they had to prove in court whose invention was first. Over the years, this requirement had touched off thousands of court fights among patent holders.
The legislation drawn up by Leahy and approved by Congress and the president has established a "first-to-file" rule for patents. Now the property rights associated with any invention are automatically assigned to the first individual or firm to apply for a patent for that invention. Leahy's expectation is that patent holders who once directed financial resources toward funding court battles now will use them to transform more inventions into market innovations. Speeding along the innovation process, Leahy anticipates, will help to fuel economic growth.
Critical Thinking Questions - Chapter 9 pg 204
1. Why are inventions alone insufficient to help boost economic growth?
2. What role do you think that markets perform in determining whether inventions of new products or processes translate into longer-lasting innovations?
Miller, Roger L. Economics Today, 17th Edition. Pearson Learning Solutions, 2013-01-01. VitalBook file.