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    Tradable Patent Rights

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    Author
    Ayres, Ian
    Parchomovsky, Gideon
    
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    URI
    http://hdl.handle.net/20.500.13051/362
    Abstract
    Patent thickets may inefficiently retard cumulative innovation. This Article explores two alternative mechanisms that may be used to weed out patent thickets. Both mechanisms are intended to reduce the number of patents in our society. The first mechanism we discuss is price-based regulation of patents through a system of increasing renewal fees. The second and more innovative mechanism is quantity-based regulation through the establishment of a system of Tradable Patent Rights. The formalization of tradable patent rights would essentially create a secondary market for patent permits in which patent protection will be bought and sold. The Article then discusses how price and quantity regulation can be combined to effect superior weeding.
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