Question

How do patents help promote competition?

Answer 1

The Supreme Court has said that patent litigation is categorically different, since it offers the chance to increase competition by freeing the public from the burdens of a monopoly.

Step-by-step explanation:

Answer 2

Patents encourage fair market behaviour and practices which is one of the main objectives of a competition policy.

Step-by-step explanation:

• Patents are rights of having a monopoly over specific goods and products. Patents therefore prevent the copying or imitation of patented goods which in turn encourages fair trade practices.

• Companies that obtain patents enjoy monopoly over the patented products but cannot misuse this power.

• Therefore, patents encourage competition among companies that have patented goods and ensure that every company that has patent rights operates within the permissible limits.