Patent Eights and the Effects of Different Activities on the Holding Rights (Essay Sample)

Patent Rights
Name
Institution
A patent right is a private regulatory right that is issued by the federal statute conferring a patent to an inventor to explore and enjoy the benefits of their new and creative inventions for a limited period. In exchange for the provision, the inventor shares back the aspects of performing the invention CITATION Com12 \l 1033 (Committee on Intellectual Property Rights, 2012). Being an exclusion right to use the invention, the aftermath is often a monopoly being to the firm or the inventor since only the inventor holds the rights to use invention giving them the control over the certain market niche. Other firms cannot the sale, import or use the invention in the productions thereby leaving the inventor to use and control the customers to their benefit.
When the temporary period for using the patent expires, both positive and adverse implications hit the market characterized by the flooding of the market with other firms using the inventions by making imitations and providing a wide range of goods to meet the consumers demands. In this case, the flood of imitation is an adverse implication with the firms providing a range of products that may be of low quality compared to the parent product inventions CITATION Jef12 \l 1033 (Mcenzie, 2012). On the other hand, this may also be a beneficial implication with the flooding of the market driving down the market prices and increasing the range of products for the customers to exercise their choice rights.
With the today’s competitive nature of the market, the patent rights receive enormous overlaps with the competitors struggling to challenge the patent rights to remain relevant in the market. The holders of the patent rights are left with no option but to offer the ‘pay-for-delay' as incentives to the competitors to delay them from introducing their products into the market that would deter their monopoly rights CITATION Com12 \l 1033 (Committee on Intellectual Property Rights, 2012). The consumers are harmed as the entrance of the new firms would influence low prices in the market an aspect that may even raise the prices with the patent right holders increasing or maintaining high prices to cover the pay-for-delay settlement costs. Also, the producers who are seeking to enter the market shall suffer from the incentives for innovations being reduced an aspect that may adversely affect the consumer's well-being in the long run. The parent innovator...