MAY 1990 | Robert P. Merges* & Richard R. Nelson**
The article "On the Complex Economics of Patent Scope" by Robert P. Merges and Richard R. Nelson explores the economic implications of patent scope, a critical yet under-studied aspect of patent law. The authors argue that the scope of a patent, defined by its claims, significantly impacts the number of competing products and processes that can infringe it. They highlight the lack of scholarly attention on this topic compared to other aspects of patent law, such as duration and compulsory licensing, which have been extensively debated.
The article begins by discussing the legal doctrines that define a patent's scope, including enablement and disclosure, and the discretion courts have in interpreting these doctrines. It then delves into the economic analysis of patent scope, focusing on how it influences technological development and competition. The authors argue that broad patents can encourage innovation by covering a wide range of applications, but they also acknowledge the potential for reducing competition and innovation in improvements.
The article examines recent cases, such as the broad claims granted to inventors of a transgenic mouse, to illustrate the complexities of patent scope decisions. It also discusses the challenges in determining whether a patentee has enabled others to make and use all devices within the claims, often relying on the "undue experimentation" doctrine. The authors conclude by suggesting ways for courts to use their discretion to balance the interests of patentees and competitors, ultimately aiming to foster a competitive environment for improvements while maintaining the incentives for innovation.The article "On the Complex Economics of Patent Scope" by Robert P. Merges and Richard R. Nelson explores the economic implications of patent scope, a critical yet under-studied aspect of patent law. The authors argue that the scope of a patent, defined by its claims, significantly impacts the number of competing products and processes that can infringe it. They highlight the lack of scholarly attention on this topic compared to other aspects of patent law, such as duration and compulsory licensing, which have been extensively debated.
The article begins by discussing the legal doctrines that define a patent's scope, including enablement and disclosure, and the discretion courts have in interpreting these doctrines. It then delves into the economic analysis of patent scope, focusing on how it influences technological development and competition. The authors argue that broad patents can encourage innovation by covering a wide range of applications, but they also acknowledge the potential for reducing competition and innovation in improvements.
The article examines recent cases, such as the broad claims granted to inventors of a transgenic mouse, to illustrate the complexities of patent scope decisions. It also discusses the challenges in determining whether a patentee has enabled others to make and use all devices within the claims, often relying on the "undue experimentation" doctrine. The authors conclude by suggesting ways for courts to use their discretion to balance the interests of patentees and competitors, ultimately aiming to foster a competitive environment for improvements while maintaining the incentives for innovation.