Abstract
This article considers current proposals for patent law reform in light of a simple theory about intellectual property law: In a world without transaction costs, the assignment of property rights is not necessary to stimulate the optimal production of creative goods. Because potential users of inventions could contract for their creation, a compelling justification for granting property rights in these intangibles is the reduction of real-world transaction and information costs that hinder, or make impossible, contract formation between users and creators. Proposals for patent law reform, therefore, should be evaluated by whether a change in legal rights, or in the regulatory process increases or lowers these costs.
Original language | English (US) |
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Article number | 2 |
Pages (from-to) | 447-462 |
Number of pages | 16 |
Journal | Santa Clara High Technology Law Journal |
Volume | 23 |
Issue number | 3 |
State | Published - 2004 |
Keywords
- Patents
- Inventions
- Transaction costs
- EBay
- Reform