Patents, Trade Secrets and Terminator Gene 200946414 경제학과 장진선

Patent The peculiarity property(고유한 성질) of technology has negative aspect. If transfer of technology between individual and company is easy, It is hard for someone who develops technology to gain economic profit .

Patent This non-excludability(비배제성) doesn’t make developers create new technology. Long time ago, If developer possesses fruition(결실) of effort, that frequency of new technology creation increases was well known. Ex) Venetian Patent Law

Patent Patent is that government allows exclusive right regarding making, using, selling of creation within a certain period of time(generally 20 years). Sometimes patent is not the best way to protect technology innovation.

Trade Secret(Coca-Cola) Because detailed information(ex. Making process, ingredient…) about the creation is opened to obtain a patent. If detailed information is opened, competitive companies will make substitute goods(similar goods).

Trade Secret(Coca-Cola) That is why making process of Coca-Cola hasn’t been opened to public for over 100 years. By survey done in 1994, administrator of R&D laboratory thinks that Keeping the secret is more important than obtaining a patent

Terminator Gene Patent is useful when a legal sanction(합법적 제재) is carried out pertaining to reproduction of invention. Bill Gates emphasizes that point in “an open Letter to Hobbyists” ★ Open Letter : 공개서한

Terminator Gene People pay for Hardware but software is shared with majority of people. “Who carry out professional work without compensation?” Without legal sanction, Patent is useless thing.

Terminator Gene Company which makes new farm produce confronted with problems that software developer(previous example) confronted. Once a farmer purchases potato seed, farmer will be able to gain the potato seeds from harvest of first year. Even a farmer might share seeds with friend.

Terminator Gene This action is illegal, but company can’t do anything. Though some company invests in producing new varieties(품종), company doesn’t gain the chance to sell seeds. Due to this problem, companies will mind investing improvement of plants.

Terminator Gene To solve the problem, Monsanto Corporation developed “Terminator Gene(종결유전자)” The plant using Terminator Gene grows very well until harvest of first year. But seeds gained from harvest of first year can’t breed(=A farmer can’t use the seeds from harvest of first year)

Other Case Patent and other protective ways will encourage R&D, but there is a case that isn’t popular politically. After company develops specific technology, Company will maximize profit by putting a high price on the new technology.

Other Case In this situation, sharing benefit of developing technology is restricted. We can see potential users of technology raged against monopoly company profit. ★ Potential users means “People who don’t pay for high price determined by monopoly company” Ex) New developed medicine

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