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By Fritz Machlup

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62 Domestic nonuse or “insufficient” domestic use of inventions which are patented to foreigners who mainly seek to protect the domestic market for goods made abroad and imported, raises issues involving foreign-trade theory. Forcing the domestic working of patented inventions which otherwise would not be so worked operates like a protective tariff: it may lead to an uneconomic location of industry, to a reduction in the international division of labor, and to higher prices to consumers. 63 C.

In such decisions there is leas of mystery than the opinions of the Court suggest. Often there are real reasons for decisions which do not appear among the good reasons put on pubic display. A valid patent in the field of gadgetry does no great harm; it is easy enough to 'walk around' the patent and turn up another device or process which performs the same function. An exhibit was once presented of a collection of can openers, each of which had its distinct identity and none of which infringed the patent of any other.

43; F. Malapert, “Notice, historique sur la législation en matiere de brevets d’invention,” Journal des Economistes, 4th series, vol. 3 (1878), p. 100. 9 E. Wyndharn Hulme, “The Early History of the English Patent System,” Select Essays on Anglo-American Legal History (Boston: Little, Brown, 1909), vol 3; Harold G. Fox, op. , supra, note 4. ); cited from Burlingame, March of the Iron Men (New York: Scribners, 1038), p. 64. 11 Paul Beck von Mannagetta, Das österreichische Patentrecht (Berlin: Heymann, 1893), p.

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An economic review of the patent system by Fritz Machlup


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