Patents encourage ingenuity by rewarding the disclosure of an
invention to the public. In exchange, a patentee acquires a limited
monopoly to exclude others from exploiting the invention for a
defined period of time. When the patent expires, the invention
passes into the public domain to be freely used by all.
Without doubt, patents may confer considerable market power upon
a patentee and/or its licensees. A handful of strategic patents can
alter the competitive landscape and define the products that are
made available to the public. After all, patents are exceptional,
creating a lawful monopoly in circumstances where free market
competition is otherwise held most dear.
To reap its rewards, a patentee may choose to exploit the
invention itself deriving profit from making, using and/or selling
products and processes encompassing the invention. Alternately, it
may merely hold it. It may sell the patent or grant a license
permitting others to exploit the invention.
