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An Economic Review of the Patent System_Vol_3_3

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An Economic Review of the Patent System_Vol_3_3

85JÍ ị COMMITTEE PRINT sd. session JAN ECONOMIC REVIEW OF THE PATENT SYSTEMSTUDY OFTHE SUBCOMMITTEE ON PATENTS, TRADEMARKS, AND COPYRIGHTSOF THECOMMIT

An Economic Review of the Patent System_Vol_3_3 TTEE ON THE JUDICIARYUNITED STATES SENATEEIGHTY-FIFTH CONGRESS, SECOND SESSIONPURSUANT TOs. Res. 236Study No 15Printed for the use of the Committee on

the Judiciary344 uUNITED STATESGOVERNMENT PRINTING OFFICEWASHINGTON : 1958FOREWORDThis study was prepared bjr Fritz Machlun, Department of Political An Economic Review of the Patent System_Vol_3_3

Economy, Johns Hopkins University, for the Subcommittee on Patents, Trademarks, »nd Copyrights as part of its study of the United States patent system

An Economic Review of the Patent System_Vol_3_3

, conducted pursuant to Senate Resolutions 55 and 236 of the 85th Congress, it is one of several being prepared under the supervision of John c. Stedm

85JÍ ị COMMITTEE PRINT sd. session JAN ECONOMIC REVIEW OF THE PATENT SYSTEMSTUDY OFTHE SUBCOMMITTEE ON PATENTS, TRADEMARKS, AND COPYRIGHTSOF THECOMMIT

An Economic Review of the Patent System_Vol_3_3 nomy dedicated to competition, we have chosen, not only to tolerate but to encourage, individual limited islands of monopoly in the form of patents. A

lmost 3 million of these have issued in the course of United States industrial history. This inconsistency has been rationalized in various ways. It i An Economic Review of the Patent System_Vol_3_3

s pointed out that the patent monopoly is limited both in scope and time; that this monopoly is more than balanced by the inventive contribution; that

An Economic Review of the Patent System_Vol_3_3

patented inventions are not actuaUy monopolistic in fact liecause they are subject to competing alternatives and substitutes; that such monopoly as d

85JÍ ị COMMITTEE PRINT sd. session JAN ECONOMIC REVIEW OF THE PATENT SYSTEMSTUDY OFTHE SUBCOMMITTEE ON PATENTS, TRADEMARKS, AND COPYRIGHTSOF THECOMMIT

An Economic Review of the Patent System_Vol_3_3 ict less serious, but they do not resolve it.These unresolved issues have never caught the attention of economists, especially the modern ones, to til

e extent that one would expect. Professor Mach I up is a welcome exception. Tn the present study, he has not only brought together, in web-edited and An Economic Review of the Patent System_Vol_3_3

analytical fashion, the economic contributions of more than a century of thinking on the subject, but ha has contributed his own penetrating and origi

An Economic Review of the Patent System_Vol_3_3

nal analysis of the sub] oct. The result is a highly readable review of the economic aspects of the patent system that adds up to a major contribution

85JÍ ị COMMITTEE PRINT sd. session JAN ECONOMIC REVIEW OF THE PATENT SYSTEMSTUDY OFTHE SUBCOMMITTEE ON PATENTS, TRADEMARKS, AND COPYRIGHTSOF THECOMMIT

An Economic Review of the Patent System_Vol_3_3 picture. Recognizing the difficulties in obtaining factual data in this field. Professor Machlup has made a further contribution by employing analyti

cal tools to achieve his pin-pose that may hereafter enable US to evaluate patent matters that have heretofore been beyond our reach.Professor Machlup An Economic Review of the Patent System_Vol_3_3

is not a newcomer to the patent field. His extensive economic writings give careful attention to the effect, of technological development, and the im

An Economic Review of the Patent System_Vol_3_3

pact of patents, in the economic area. Among his writings that contain patent discussion are The Political Economy of Monopoly, of which he is the aut

85JÍ ị COMMITTEE PRINT sd. session JAN ECONOMIC REVIEW OF THE PATENT SYSTEMSTUDY OFTHE SUBCOMMITTEE ON PATENTS, TRADEMARKS, AND COPYRIGHTSOF THECOMMIT

An Economic Review of the Patent System_Vol_3_3 n of Research and Statistics, Office of Alien Property, from 1943 to 1946, be participated in formulating and administeringmIVFOREWORDGovernment polic

ies with respect to enemy assets, of which patents were an important part, Currently, ho is making an extensive economic study of patents and thè pate An Economic Review of the Patent System_Vol_3_3

nt system under a Ford Foundation grant.In publishing this study, it is important to state clearly its relation to the policies and views of the subco

An Economic Review of the Patent System_Vol_3_3

mmittee. The views expressed by the author are entirely his own. The subcommittee welcomes the report for consideration, but its publication in no way

85JÍ ị COMMITTEE PRINT sd. session JAN ECONOMIC REVIEW OF THE PATENT SYSTEMSTUDY OFTHE SUBCOMMITTEE ON PATENTS, TRADEMARKS, AND COPYRIGHTSOF THECOMMIT

An Economic Review of the Patent System_Vol_3_3 the study represents a valuable contribution to patent literature and that the public interest will be served by its publication.Joseph c. O’Mahoney,C

hairman, Subcommittee on Patents, Trademarks, and Copyrights, Committee on the Judiciary, Xĩniled States Senate.June 30, 1958.CONTENTSPâROI.Introducti An Economic Review of the Patent System_Vol_3_3

on—--............................................... 1II. Historical survey— A._______________________________________________ 2A.Early history (b

An Economic Review of the Patent System_Vol_3_3

efore 1624)- — —2B.The spread of the patent system (1624’1850)__________________ 3c. The rise of an antipateut movement (1850-1873)_______________ 4

85JÍ ị COMMITTEE PRINT sd. session JAN ECONOMIC REVIEW OF THE PATENT SYSTEMSTUDY OFTHE SUBCOMMITTEE ON PATENTS, TRADEMARKS, AND COPYRIGHTSOF THECOMMIT

85JÍ ị COMMITTEE PRINT sd. session JAN ECONOMIC REVIEW OF THE PATENT SYSTEMSTUDY OFTHE SUBCOMMITTEE ON PATENTS, TRADEMARKS, AND COPYRIGHTSOF THECOMMIT

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