Final answer:
The 'bargain' theory justifies patents as a social contract for innovation disclosure, where inventors are granted a temporary monopoly in exchange for contributing their knowledge to the public.
Step-by-step explanation:
The "bargain" theory, a theoretical justification for patents, argues b) Patents are a social contract for innovation disclosure. This theory posits that patents serve as a social contract between inventors and the public. In exchange for a temporary monopoly over the use and sale of an invention, the inventor must disclose the details of their invention, thus contributing to the broader pool of public knowledge and potentially spurring further innovation.
Patents indeed provide an incentive to innovate by protecting the inventor, allowing them to earn monopoly profits on their products for a limited period, typically up to 20 years. However, inventors receive only a fraction of the total economic value of their inventions. The system isn't perfect, as patents can sometimes cover too much, be granted too easily, or become less relevant in fast-paced technological sectors like biotechnology.