Question

Paul Terhorst, author of Restoring the American Dream and graduate of Stanford Business School, states: "In business school we used to say, "The best patent protection you can have is 80% of the market.' Monopoly power comes from market acceptance, not from a patent, a prettier product, a slick advertising campaign, or anything else. So rather than spend your time in court, you should be out there drumming up business." Do you agree? How important is defending patent rights?  

Answer 1

Answer - Yes , I agree with the given statement. Having a patent does not mean necessarily that the firm is momopoly . For the purpose of sustaining in the market , not only obtaining the patent is necessary , but defending the patent is also necessary. The innvovative nature , the goods , the benefits to consumer of the patent must be maintained otherwise the strong competitors may try to enter through new patents. Thus , defending patent is necessary to maintain that monopoly power.