Tuesday, December 9, 2008
Striking a Balance between Competition Law Enforcement and Patent Policy: A Developing Country's Perspective
Posted by D. Daniel Sokol
Thomas Cheng of the University of Hong Kong - Law provides his thoughts on Striking a Balance between Competition Law Enforcement and Patent Policy: A Developing Country's Perspective.
ABSTRACT: This book chapter examines the tension between competition law enforcement and patent policy in developing countries. Based on the framework proposed by Louis Kaplow in an article in the early 1980s, this book chapter suggests how developing countries should balance consumer welfare against the need to provide incentives to innovate. The book chapter argues that the balance depends on the developing country at issue, in particular on that country's capacity to innovate. For those developing countries with little capacity to innovate, this book chapter suggests that the balance should be tilted towards competition law enforcement. The degree of patent protection should be increased as the country's capacity to innovate improves.