Academic commentary about patent law, i.p. law, creativity, and more

January 23, 2008

Competitive market default

posted by Joe at 6:29 am

A validly issued, well-crafted patent is a great good thing.  An erroneously issued, overbroad patent is a terrible, anticompetitive thing.  “Getting it right” is important, and there are many reasonable arguments on all sides of the complex implementation questions.

Is there a tie breaker in some of these policy debates, a default position to which we can return when we’re not precisely sure how best to proceed?  Like it or not, the Supreme Court has clearly used competition (and a right to copy) as our default.  To take a few examples:

Dastar Corp. v. Twentieth Century Fox Film Corp., 539 U.S. 23, 33 (2003): “‘In general, unless an intellectual property right such as a patent or copyright protects an item, it will be subject to copying.’ TrafFix Devices, Inc. v. Marketing Displays, Inc., 532 U.S. 23, 29 (2001).”

TrafFix Devices, Inc. v. Marketing Displays, Inc., 532 U.S. 23, 29 (2001): “Trade dress protection must subsist with the recognition that in many instances there is no prohibition against copying goods and products. In general, unless an intellectual property right such as a patent or copyright protects an item, it will be subject to copying. As the Court has explained, copying is not always discouraged or disfavored by the laws which preserve our competitive economy. Bonito Boats, Inc. v. Thunder Craft Boats, Inc., 489 U.S. 141, 160 (1989). Allowing competitors to copy will have salutary effects in many instances. ‘Reverse engineering of chemical and mechanical articles in the public domain often leads to significant advances in technology.’ Id.”

Wal-Mart Stores, Inc. v. Samara Bros., Inc., 529 U.S. 205, 213 (2000): “The fact that product design almost invariably serves purposes other than source identification not only renders inherent distinctiveness problematic; it also renders application of an inherent-distinctiveness principle more harmful to other consumer interests. Consumers should not be deprived of the benefits of competition with regard to the utilitarian and esthetic purposes that product design ordinarily serves by a rule of law that facilitates plausible threats of suit against new entrants based upon alleged inherent distinctiveness.”

Pfaff v. Wells Electronics, Inc., 525 U.S. 55, 63 (1998): “As we have often explained, most recently in Bonito Boats, Inc. v. Thunder Craft Boats, Inc., 489 U.S. 141, 151 (1989), the patent system represents a carefully crafted bargain that encourages both the creation and the public disclosure of new and useful advances in technology, in return for an exclusive monopoly for a limited period of time. The balance between the interest in motivating innovation and enlightenment by rewarding invention with patent protection on the one hand, and the interest in avoiding monopolies that unnecessarily stifle competition on the other, has been a feature of the federal patent laws since their inception.”

Bonito Boats, Inc. v. Thunder Craft Boats, Inc., 489 U.S. 141, 156-57 (1989): “Both the novelty and the nonobviousness requirements of federal patent law are grounded in the notion that concepts within the public grasp, or those so obvious that they readily could be, are the tools of creation available to all. They provide the baseline of free competition upon which the patent system’s incentive to creative effort depends. A state law that substantially interferes with the enjoyment of an unpatented utilitarian or design conception which has been freely disclosed by its author to the public at large impermissibly contravenes the ultimate goal of public disclosure and use which is the centerpiece of federal patent policy.”


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