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Cheap Drugs At What Price To Innovation: Does The Compulsory Licensing Of Pharmaceuticals Hurt Innovaton?, Colleen V. Chien

Faculty Publications

The patent system is built on the premise that patents provide an incentive for innovation by offering a limited monopoly to patentees. The inverse assumption that removing patent protection will hurt innovation has largely prevented the widespread use of compulsory licensing-the practice of allowing third parties to use patented inventions without patentee permission. In this Article, I empirically test this assumption. I compare rates of patenting and other measures of inventive activity before and after six compulsory licenses over drug patents issued in the 1980s and 1990s. As reported below, observe no uniform decline in innovation by companies affected by …