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Unit 10: Sample Case 9

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Microeconomics
UNIT 10: Sample Case 9 “A patent is an exclusive right granted for an invention, which is a product or a process that provides, in general, a new way of doing something, or offers a new technical solution to a problem. In order to be patentable, the invention must fulfill certain conditions.” (www.wipo.int/patientscope/en/, 2012) To translate, if you develop a new method or procedure of constructing a product that has never been done before, no one else can copy or use the process for a set amount of time. By granting ownership on the basis of a filed patent application by a nation and/or regional authority to be enforced within the same nation and/or region, it protects your invention from being commercially exploited and may extend to most known countries within one year of filing the patent application known as ‘priority’, that may be extended as much as 20 years from the date of filing. It is enforced by the proprietor and is meant to protect industrially applicable/technical inventions only. (Nissen, 2012)
Patents ensure that the payoff from R&D and a business’ competitive advantage are maximized, they can also be valuable in generating interest and investments in new and also growing business. This is especially important in new business’ attempting to establish themselves in high tech industries where a new technique can mean the difference between making it in the industry and going bankrupt. It also serves as a readily available and accessible public record of the innovation and developments made by the patent owner and the company (Choksi, 2012). Since you own all rights to the patented idea or process you have the ability to also license others the rights to your patient which will help you spread the overall costs to others while you maintain a profit by allowing others who may be better able to do certain steps or make certain

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