Related questions with answers
In what way does the patent system help society solve an externality problem?
Pathetic system is a legal system for protecting the rights of the inventor. Patents are new useful ideas that are registered and protected. If someone steals something that is patented, he may be sued for infringing the patent.
The patent system help society solve an externality problem:
patent system has laws which protect the inventor by giving them the exclusive rights to use their invention in the set time period from the day the innovation was patented
by giving inventors this exclusive right of use, the externality is internalized