Patents for genetic inventions: a tool to promote technological advance or a limitation for upstream inventions?

An Economic Model for Bioprospecting Contracts

“…In pharmaceutical research in particular, the clear definition of intellectual property rights is essential to facilitate R&D collaboration and to protect knowledge before the formalisation of technology exchange arrangements, so that the security, distribution and exploitation of the initial inventions can be guaranteed by legislations (Thumm 2005).…”

“…On the one hand, patent rights grant the holder exclusion power from research or exclusion power from the market. They encourage the creation of new, economically valuable knowledge and increase competitiveness within an appropriate regulatory framework (Musu 2005;Thumm 2005). On the other hand, many critics believe that the patent system creates entry barriers and overly strong monopoly positions, thus hindering the development of new knowledge (Lawson 2004;Musu 2005;Thumm 2005).…”

“…They encourage the creation of new, economically valuable knowledge and increase competitiveness within an appropriate regulatory framework (Musu 2005;Thumm 2005). On the other hand, many critics believe that the patent system creates entry barriers and overly strong monopoly positions, thus hindering the development of new knowledge (Lawson 2004;Musu 2005;Thumm 2005). In the remaining body of the paper, we attempt to apply a formal economic analysis so as to identify the different patenting schemes involved in pharmaceutical bioprospecting contracts and their economic impacts on stakeholders' objective functions, the overall level of genetic resource protection and human welfare.…”

The coincidence of patent thickets—A comparative analysis

“…The resolution of such multilateral blocking relationships involves substantial bargaining costs (Heller and Eisenberg, 1998;von Graevenitz et al, 2011). Furthermore, overlapping patents increase the complexity of patent clearing processes due to the blurring boundaries of single patents, thus increasing the probability of patent infringement (Bessen and Meurer, 2008;Thumm, 2005) and the danger of holdup. Furthermore, there is strong empirical evidence that firms engage in increased patenting when faced with patent thickets, again nourishing their growth (Hall and Ziedonis, 2001;von Graevenitz et al 2013;Ziedonis, 2004).…”

Markets for standardized technologies: Patent licensing with principle of proportionality

“…Yet this model, combined with prevailing trends in the distribution of patent ownership and the integration of multiple technologies into one product, has given rise to a new problem: the cumulative licensing fees are reaching levels where it is becoming unprofitable to manufacture products with many integrated technologies (Bekkers et al, 2002;Lemley and Shapiro, 2007;Thumm, 2005). An example of a common multitechnology product with widely distributed patent ownership is the multi-mode mobile handset with digital camera and wireless local area network (WLAN) interface.…”