Innovation Incentive Quotes

The US patent system adds the fuel of interest to the fire of genius in the discovery and production of new and useful things

The patent system was established to encourage inventors to disclose the details of their inventions. Its purpose was to help society rather than to help inventors. At the time, the life span of 17 years for a patent was short compared with the rate of advance of the state of the art. Since patents are an issue only among manufacturers, for whom the cost and effort of a license agreement are small compared with setting up production, the patents often do not do much harm. They do not obstruct most individuals who use patented products.

Unless there exist peculiar institutions for the support of such inquirers, or unless the Government directly interfere, the contriver of a thaumatrope may derive profit from his ingenuity, whilst he who unravels the laws of light and vision, on which multitudes of phenomena depend, shall descend unrewarded to the tomb.

The primary objective of copyright is not to reward the labor of authors, but ‘[t]o promote the Progress of Science and useful Arts.' To this end, copyright assures authors the right to their original expression, but encourages others to build freely upon the ideas and information conveyed by a work. This result is neither unfair nor unfortunate. It is the means by which copyright advances the progress of science and art.

Monopolies are not justified by theory; they should be permitted only when justified by facts. If there is no solid basis for extending a certain monopoly protection, then we should not extend that protection. This does not mean that every copyright must prove its value initially. That would be a far too cumbersome system of control. But it does mean that every system or category of copyright or patent should prove its worth. Before the monopoly should be permitted, there must be reason to believe it will do some good — for society, and not just for monopoly holders.

If someone thinks of something, some new innovation that benefits us all, and the market works properly, they get richly rewarded for that, and that's just terrific, and that creates inequality.

Next came the Patent laws. These began in England in 1624; and, in this country, with the adoption of our constitution. Before then [these?], any man might instantly use what another had invented; so that the inventor had no special advantage from his own invention. The patent system changed this; secured to the inventor, for a limited time, the exclusive use of his invention; and thereby added the fuel of interest to the fire of genius, in the discovery and production of new and useful things.

Free enterprise cannot be justified as being good for business. It can be justified only as being good for society.