GEP Research Paper 02/21
Trade and the Globalisation of Patent Rights
R.E. Falvey, F. Martinez and G.V. Reed
Abstract
This paper examines the role of patent policy in the open economy. It begins by considering how the presence of patents affects trade in patentable products. A brief review of the general argument for patent protection is followed by consideration of the elements that comprise a patent system, and which determine "patent strength". Attention is then given to how the existence of the global market influences countries' choices of patent system. It is noted that the way patents are applied tends to push countries towards extreme choices, which may partly explain the pressure for some degree of international harmonisation that led to the minimum standards specified in the TRIPs Agreement. But even with these minimum standards, countries retain discretion over important aspects of their patent systems.
Issued in September 2002.
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