Even though, many companies and organizations told us that patenting is good, but there are many people still take a skeptical attitude. Because, they think patent protection will hamper further innovation. In some specific areas, the early discovery could become essential knowledge. If the follow-on inventors want to study those areas, they have to be licensed first. For example, in the case “Alnylam Pharmaceuticals: Building Value from the IP Estate”, the Tusch1 patent is a fundamental patent of RNA interference technology (Shih & Chai). If anyone want to study RNA interference technology, they could not ignore this patent. That means this fundamental patent could prevent young scientists and researchers to get in to this area. Those negative effect will impact …show more content…
In addition, patent protection also has a negative effect on productions’ diffusion and competition. The exclusive rights will make a 20-years monopoly. During this period of time, the company could raise the price or control the production quantity. That will help company make more money. However, higher price will hinder the diffusion of their products. Similarly, if the company control the important patents, they could dominate the whole market. Their competitors will be at a disadvantage. That could be the chief impediment to competitions (Organization for Economic Co-operation and Development, 2004). In the developing countries, the patented drugs could be a big problem to local people, such as China and India. Both Chinese people and Indian people have very low income. And most of foreign patented drug have very high price. That means the poor people do not have a capability to