When inventions take the form of discovery and application, the authorities may issue a dominant patent to

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When inventions take the form of discovery and application, the authorities may issue a “dominant patent” to the pioneering discovery and a “subservient patent” to the improvement. The subservient invention cannot be manufactured legally without the agreement of the holders of the dominant patent and the subservient patent. Thus, the two parties are compelled to bargain, each having veto power, and agree on the division of future profits before manufacturing the improvement. Absent such an agreement, only the pioneering invention can be manufactured. Answer Question 5.2 under the assumption that, instead of prescribing broad or narrow patents, the law grants a dominant patent and a subservient patent.

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Law and economics

ISBN: 978-0132540650

6th Edition

Authors: Robert cooter, Thomas ulen

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