Intellectual Property Research Institute of Australia

IPRIA Working Paper Series

    Intellectual Property Research Institute of Australia Working Paper No. 15/2004

    Achieving the Optimal Power of Patent Rights

    by

    Paul H. Jensen and Elizabeth Webster

    Date: November 2004

    Abstract: In this paper, we identify three policy instruments governments have at their disposal to affect the power of patent rights to prevent imitation: the size of the inventive step used to make the patent granting decision, the rigour of the patent examination process and the predisposition of the courts to affirm the patent office's decision. We develop a simple framework to analyse the effects of changing these policy instruments on ex ante investment in invention in the light of recent concerns about the potential effects of socially undesirable patents.

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