Analysis of the Impact of the Patent System on the IndustryThrough Historical Examples

Abstract

The main objective of this research is to understand if the patent system that have always been seen as fundamental in the modern society is actually helping the economy and the industry sector. While the patent system is accepted by most, as a good way to protect invention, the social benefit and the impact of this one on the society has never been shown clearly by research. This study was made in the hope of bringing a bit of light on the subject. To be able to analyze the impact of patent law on the system, the description of its origins and the way it developed enables the reader to slowly understand the evolution of it and the issue of it. To be able to have a good understanding of the system, a review of the main evolution will be seen, first by developing the existence of a protection of invention in the ancient Greece, with the city of Sybaris and the development of diverse sector of its economy thanks to the patent system. Followed by the creation of the first patent law in the history made in Venice, the city indeed was one of the superpower of the 14-15th century, and the patent law enacted in the late 15th was probably one of the tools that did bring this development. The subject of American patent act and development of the patent law in England having been dealt with in many researches, this research will rather focus on the patent debate in the 19th century between, patent advocates and patent disclaimers. Will follow, an analysis of the modern patent system and the way countries accepted the standardization of norms to finally arrive to a global system of protection of the intellectual property by the ratification of TRIPS agreement by the developing countries. US negotiators of the Uruguay round of GATT have pushed the TRIPS agreement, the impact of new protections in developing countries having consequences on their economy that are necessary to deeply understand and have a global pictures of the consequences of patent laws on the world industries. To see how introduction of new regulations affects the economy of developing countries, we will see the examples of the introduction of patent regulation in Kenya and the effect it had on the country. Most of Kenyan patents been filled by foreigners or foreign companies with low disclosure of information. The Patent law being implemented in almost every countries nowadays, it would be could to adapt it to the different cultures and to the level of development of countries. Leaving more time for he unprepared countries to adapt their law and culture to the system of protection. Besides, some points of the actual system bring problems. The initial creation of the patent system was to satisfy inventors to be able to push a feeling of invention in the country by giving reward based on the utility of the invention. The problem is that the analysis of the situation of Netherlands in the 19th century shows that there is no such tendency of improvement of innovative feeling in the country before and after a patent law. Plus, the litigation fees being really high comparing with before, inventors are not as well protected as they might have been centuries ago. Most of the litigation involve not two sole inventors trying to prove their rights on an invention but two industry or, a sole inventor against a full industry. In this case its difficult to have fair litigation with fair judgment. Most of recommendation are based on the exploitation of results focus the developing countries. To be able to maximize profits and make patent a system that can be profitable for both companies and states, implementation of a slow patent law or delayed one, could help the developing countries to be able to broaden their knowledge and develop their market easier, and by this let global companies make profits. Second recommendation would be to push pharmaceuticals companies and software companies to actually invest in R&D in developing countries to be able to sell their or fill patents. Even if the investment represents a colossal loss of money at the beginning, the education and the technology improvement that result from it would enable developing countries to develop their market and finally satisfy both foreign company as well as locals few years later, while the lack of investments now represents a success on the short term but deprive most of multinational companies from a long term benefit they could make. A reform of the patent system is necessary to adapt it to the modern society as it always have been done in the past. This evolution would make the patent system good and profitable for all, and make a logic of win-win between countries and companies.