Terms in this set (27)

Having the patents allow for the inventor to have control over their patents. After a certain time, it is reasonable for the patent to expire so that others may use the product for innovations or improvements. This is not the case for real property rights because the release of the property rights will not cause any more economic value (if it does not cause loss of economic value).
Because patents may create a temporary monopoly that rewards the inventor and over-charges buyers, the optimal life of a patent strikes the best balance between encouraging creativity and discouraging dissemination. As the duration of patents increase, society suffers more costs from less dissemination. Society responds to long patents by searching for substitutes for patented goods. It is good to limit the length of patents so that society can utilize the innovation and not have to suffer the costs of having to find substitutes or not utilizing the innovation at all. Real property rights are different bc relinquishing them after a certain period of time adds no value to society.

The optimal duration of a copyright involves a different problem from patents, tracing costs. The research cost can be very extensive when researching if your original idea for a novel may unintentionally infringe on a previous authors idea. For this reason, copyrights are given a limited duration and relatively narrow breadth for their creation. If copyrights are broad in scope, then this may choke creativity and limit new creations. Copyrights can also hinder and obstruct communications among scholars and slow scientific development. Especially before the internet, scientists mainly communicated through papers and journals, which were very costly to produce and purchase.