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(chapter 10) 1.4.Next steps The panel invites submissions to this draft report. Following consideration of submissions the panel will finalise its report. The pharmaceutical patent system - setting the scene 2.1. Introduction to the patent system The patent system encourages investment in innovation by providing a period of market exclusivity during which innovators can try to recoup the costs of developing and bringing new ideas to market. Without this, incentives to innovate may be insufficient because inventors might be unable to prevent others, who have not borne the costs of developing inventions, from exploiting them. In exchange for market exclusivity, patentees disclose their inventions to the public. This provides public benefit by putting information in the public domain so that others can build on that information. Patents also increase the price of innovative products to consumers and restrict other innovators' freedom to operate.

The challenge is to optimise the system to generate maximum benefits taking into account three factors •The benefits to society of investments in innovation that would not otherwise have taken place; •the costs to society of: o the costs to consumers of products once they have been produced; o the obstacles that the patent system can put in the way of 'follow on' innovators. Discussion of patent design has typically focused around the optimal patent length - something that typically brings out the tension between the interests of producers and consumers of intellectual property (IP). Here the challenge is to provide just sufficient IP protection to provide incentive enough to produce and commercialise georgia buy hydrocodone 5 oxycontin attorneys the IP, so that the maximum possible benefit can go to consumers, while still ensuring sufficient producer benefits to create further IP. In buy hydrocodone 5 fact, such a fine trade-off is never possible with any accuracy, not just because policy makers lack the requisite knowledge to make it as felicitously as the theory calls for, but also because patents are technology neutral. As a result, policy makers must pick a 'one size fits all' patent length, which will be excessive in some cases and inadequate in others. More recently it has become clear that there is more to optimising patent policy than this simple trade-off on patent length. Patents operate not just as a tax on IP consumers but also as hydrochloride oxycodone a buy hydrocodone 5 potential barrier to follow-on innovators who wish to further develop existing IP or, buy hydrocodone 5 to use Newton's famous words, to "stand on the shoulders of giants". We have contraindications information overdose tramadol ultracet been through a period in which, for a variety of reasons, patenting was associated with the benefits of innovation in too simple and automatic a manner.

The result of such a mindset seems to have involved the granting of a sharply increasing number of patents and an expansion of no pharmacy phentermine prescription us patenting to areas not originally envisioned as patentable, for example software and business methods. Too many patents can be a serious impediment to innovation, as innovators must spend their scarce resources identifying patents they may be infringing - even if their own innovations were independently discovered. This has been a particular problem in software where major firms in IT such as Apple, Google and Microsoft now spend large amounts suing each other.

The pharmaceutical industry has very different characteristics to software, which are discussed more fully later in this report.

Nevertheless as this report documents, the design of the IP system is of considerable importance for efficiency, raising considerations well beyond the simple length patents run or the ease with which existing rights can be enforced. Our task is to optimise the design of the patent system to maximise the gains relative to the costs.



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