The effectiveness of a patent: An economic analysis of industrial property law

Abstract

The aim of this paper is the economic analysis of patent law. It begins with a description of the most significant assumptions of law and economics as well as the fundamental legal regulations referring to the institution of a patent. Subsequently, structural features of a patent are analyzed – its length, width and height. Finally, there is a discussion of the most important specificities of patent protection of inventions in the sectors where the effectiveness of this institution is rated very differently – the pharmaceutical and the software industry. Additionally, the paper contains some proposals of law changes to improve the efficiency of a patent which is an essential tool of invention protection.