MGT Notes

Legal Aspects of Managing Technology, 5e, Burgunder, Pg 4

Patents are property rights that inventors are given for creations that are novel, useful and non-obvious. Patents are also awarded for ornamental designs. For regular patents, the protection is for 20 years from the filing date. For ornamental designs, the protection is 14 years from the effective date. During the time the patent is effective, the inventor has the legal authority to prevent others from selling and making products that incorporate the invention. If the invention is truly novel, this period can be highly profitable for the inventor. The period is chosen to strike a balance between motivation for inventors to undertake research and development and enable free market competition when the patent expires. All details about the patent are in the public domain so that improvements can be worked on immediately by competition for the greater good of society.