Empirical Evidence on Patents and Data Protection
71 Pages Posted: 3 Mar 2016
Date Written: January 31, 2016
Abstract
This paper summarizes the empirical research on the patent system and on data protection. This is done in the context of the 2015-16 Australian Productivity Commission Inquiry into Intellectual Property Arrangements. The major focus is on whether the patent system is effective and efficient - that is, does it grant patents only for inventions that would not otherwise have occurred and which have net positive spillover benefits. These are the criteria for a parsimonious patent system - one that minimizes damage to consumers and follow-on inventors. In general patent systems are seen to fail this test largely because the inventiveness (non-obviousness) requirement is far too low. Beyond this, patent privileges are seen to be too extensive, now that the local working requirement has been removed. Further, penalties are one-sided encouraging applicants to apply for almost uninventive inventions. In regards to data protection questions are raised about both the economics and the ethics of providing data protection.
Keywords: patent policy, data protection
JEL Classification: O34, O31, L5, L43
Suggested Citation: Suggested Citation