Economic Analysis On Patent System

This paper of patent system is not from the viewpoint of jurisprudence but of economics. Its stems from the development of both the internal and external factors : First, with the domestic economic reform launched the need of personal or business ownership of inventions protection; Second, with the outside world and more extensive international cooperation, need to introduce patent system that the great majority of market economy countries have adopted rules. In China, most of the areas of concern is the jurisprudence, we have a lot of legal documents to the patent system. However, patent system of China is still a large number of theoretical and practical problems to be solved, but to answer these questions, it seems more necessary from the perspective of economic theory analysis. This paper is just this sort of background research, made some views on this issue.In chapter 1, I review some of the origin and development of law and economics and the basic meaning and three major tasks of law and economics have been described. The analysis of the law and economics divided into: One philosophical foundation : Methodological individualism; Two economics basis : Scarcity and rational person; Three Methods of law and economics: cost-benefit analysis, and incentive. Discussion on the law and economics research localization issues.Chapter 2 is the part of the patent system's operation performance and empirical analysis. The first part is the patent system rationality of Economic Analysis. As patented products are external, do not have exclusive, not prevent free "free-rider" behavior, to the inventor of social benefits and personal income inconsistent, a lack of inventions motivation have been suffered. Only in the patent system, through the invention of the patent inventors compensation costs, inducing of his invention, inventiveness from a long-term macro level to increase social benefits, the legal system is conducive to the effective allocation of resources and promote its maximization. Although patents are private, but the law should also consider the public nature of it, to prevent excessive expansion of the franchise entered the public domain. Based on this consideration, the patent law provides for the franchise length and width. Therefore, from an economic point of view, the patent system set up in a prominent characteristic is the basis of social, technical, economic development, constantly in the private rights and social and public interests for a relatively dynamic equilibrium. Secondly, By using empirical methods from four to the United States and Japan as the two representatives of the developed franchise system to run performance than more analysis, in which we learned two different trends in economic development reasons. Thereby the third patent law changes is approaching, lessons developed, particularly the United States patent system's advanced experience, as the right hemisphere of the patent system to better adapt to China's national conditions, China's economy to play a role in promoting development.In chapter 3, Use economics to analyze the international patent system. TRIPS to be regarded as a domestic invention promotion activities, the agreement promote the progress of science and technology and economic development in the important mechanisms. It reached the mark with the implementation of the international patent protection system into one trade, standardization and strengthening of a new stage of development. However, the reality for some developing countries is not the Gospel. From the development process and results, TRIPS entirely controlled by the developed countries, the agreement TRIPS is essentially to protect the interests of the developed the "single-win" agreement. Faced with the developing country, the developed countries have made exclusive international market monopoly status to some extent created a market entry barriers. This is my business development experience "patent gate affair," the international background. Patent barriers fully embody the dual nature of the patent system, that is, it is conducive to the protection of inventors, promoting technological innovation and technological progress; the other hand, it is not good to the diffusion of technology and technology sharing ultimately hinder the further development of science and technology. From the abuse of patents, patent "internal" and selective investment, special legislative measures three aspects of the use of the patent barriers set up to conduct an economic analysis. Finally reached a conclusion : the pros and cons of the patent system to a large extent depends on the government and enterprises on how to deal with the new environment and rules. On this basis leads to the final part of this paper : strengthening government regulation and improve China's patent system.In the final chapter, there are many limitations in pure free market, such as : can not eliminate monopolies, with the external market, the market is unable to meet the public demand for the product and so on. Therefore, It is necessary for the government regulation of economic activities in the market, supervision and control of the private sector. In the private sector to avoid decision-making does not sufficiently consider, such as : fair, health and safety, and other public interest on social welfare losses. China's patent system in the patent barriers and franchise system of market failure, the proposed patent law changes for the third time. This paper from the relevant literature, recommendations from several areas of patent law changes, thereby improving China's patent system further promote China's scientific and technological level of the increase and rapid economic development.