An interview with a pharmaceutical industry analyst on the BBC today illustrated a key point about patents and reminds us they are about stimulating, not rewarding, innovation.
Explaining why AstraZeneca were having difficulties that were making them plan large layoffs, the analyst talked about the “patent cliff”, and the interviewer insightfully observed that it was the motivation to continuing innovation. The “patent cliff” is the end of the 20 year monopoly on an invention. During the 20 years period, the pharmaceutical company is free to charge whatever it wants for a drug, and thus able to make enormous profits.
To read the full, original article click on this link: ☆ Patents and Innovation « Wild Webmink
