Regulatory restriction to Patent rights will affect innovation and benefit free-riders

The 4ip Council published an article by Prof. Dr. Klaus-J. Melullis, which critically analyses the arguments put forward that the patent and its enforcement limit competition, differentiating between SEP and non-SEP. The article further analyses the potential need for regulatory intervention in the litigation system and the expected consequences of such potential intervention on competition, investments, research and development activities and innovation

The artcile concludes that :

  • any regulatory intervention that restricts the right of the patent holder, limits his chance to obtain a fair return on his investment for the risk of failure he has taken as well as a market-conformed profit. The right to get rewarded for the disclosure of an invention remains with the patent holder; 
  • innovation processes and product development would be retarded as free riders would be encouraged to infringe the patent and seek long lasting litigation while using the technology and earning profits without any timely and fair compensation.
  • FULL ARTICLE here.