… to evolve from the competition to the oligopoly. However, history has shown that the market for some products has evolved to dominate other markets (e.g., the patent system).
Although it’s easy to dismiss the current monopoly, the patent system is one of the most essential inventions of the 20th century. It allowed inventors to keep their inventions out of the hands of the general public so they could be made to be useful. It makes sense in many ways, but it’s also a very wasteful system. If there is no competition in the market, inventors are able to charge huge premiums to the patent holders to keep the patent laws from being challenged.
What we don’t understand is why patents are so valuable in the first place. If you’re a scientist, it’s because you can invent a very useful new technology without worrying about the patents that will ultimately decide whether your invention works or not. If you’re a scientist, that’s a pretty good reason to invent a new technology. It’s not like its a bad thing, the only problem is the patent system doesn’t benefit society in any way.
So here is the thing. I can’t think of a single scientific study that has found that the patent system benefits society. In fact, I would argue that patents in general are really detrimental to society. They only serve as a tool to enforce patents on small companies who are at the mercy of the monopoly patent holder. But its good to know that the patent system in the US isnt helping society.
The problem is that there is no free market for patents. In fact, there is no free market for patents at all. In the US there are basically four types of patents: design patents, utility patents, brand name patents, and software patents. The patent system here is controlled by the government, so it is the government that decides who gets to patent how things are built. And if the government decides that a certain technology is useful for everyone, then the patent system goes to work.
Patent monopolies are the antithesis of free markets. The idea is that if a company can’t get the best return for its innovations, that company will not continue innovating. This idea can be traced back to the 18th century in England, where a group of wealthy, very powerful men (the “royalists”) created various patents around the time that patents were first created, and they used those patents to create monopolies which could only be used on other companies that had the monopoly.
The patent monopoly was a bit of a joke in many respects. It was a sort of legal fiction that allowed a small number of very wealthy companies to monopolize a very large number of very valuable services or inventions that they didnt have the money to pay for. Think of the phone company that you are allowed to buy because your phone company is the only phone company in the US with enough cash to pay for your phone.
The patent monopoly has its problems as well. I know I’ve heard it suggested that the patent monopoly was a kind of anti-competitive cartel that kept certain companies from competing with each other. But I’ve also heard the suggestion that it was a way for these companies to monopolize technology and keep their own technology out of the hands of other companies. These ideas are all over the internet, but none of them are particularly original. The history of patents is fascinating, of course.
The truth of the matter is that for the most part the patent system is a good thing. It allows inventors to create new products without having to compete against a monopoly. It’s easy to see why companies are reluctant to license out the latest and greatest inventions that are patented, but it is important to remember that the patent system is not a zero-sum game. It doesn’t mean that the patent system is always a winner.
One of the reasons patents are good is that they create a market for new products and services. The problem is most of the time companies get too greedy and then they become too big to start with. When it comes to patents, there is a fine line between being “too big to fail,” and being “too big to start with.