Patent Laws & Technology Supression

Just because you build a better mousetrap doesn't mean you have to share it with others.

Patent law gives patent holders the exclusive right to use or license the use of their designs. Patent holders might also choose to prevent their patented ideas from coming to the market; this is usually called patent nonuse or technology suppression.

History

The Supreme Court ruled in Continental Paper Bag Co. v. Eastern Bag Co. that "it is the privilege of any owner of property to use or not use it, without question of motive," and extended this privilege to patents. Patent holders choosing not to use their patents are well within their rights.

Types

Patents that are acquired are sometimes seen differently than patents that are invented. If a company buys up all relevant patents in a particular field with the intention of driving other companies out of business, that business may be in violation of antitrust laws.

Prevention/Solution

Compulsory licensing is one proposed solution to technology suppression. Under this scheme, the courts would be allowed to force a patent holder to license use of the patent after a certain period of nonuse. Compulsory licensing is not currently a part of U.S. law.

References

• "Unilateral Technology Suppression: Appropriate Anittrust and Patent Law Remedies"; Yee Wah Chin; 1998
• "Patent Nonuse and the Role of Public Interest as a Deterrent to Technology Suppression"; Kurt Saunders; 2002

Resources

• "Patent Law Essentials: a concise guide"; Alan Durham; 2004