Law and Economics of Patents

This book provides a broader overview and law and economics analysis of the intricate relationship between legal frameworks governing patent granting and enforcement and their economic implications.

Chapter 1 introduces a reader to the main principles and methodology underpinning law and economics. Through provided theoretical explanations, readers may gain insights into the law and economics of patents as a specific subdiscipline of law and economics that offers a valuable lens through which to view (patent-related) legal issues and policies. Chapter 2 adds further complexity to the law and economics of patents by describing and explaining the historical evolution of patents, patent granting procedures, and the scope of patent protection.

Chapters 3 and 4 provide a more fine-grained analysis of patent law and related legal institutes. Chapter 3 explores economic justifications for patents and the trade-off between innovation and efficiency. Subsequently, it explores specific issues, such as patent race and patent thicket, and the role of patent enforcement in technology transfers and licensing. Chapter 4 embarks on a journey to quantify and illuminate the multifaceted economic impact of patents, focusing on their pivotal role in driving innovation and shaping market dynamics.

Chapter 5 navigates the evolving landscape of patent law and policy and provides insights into the recent changes, persistent challenges, and emerging trends that shape the future of the patent system. It begins by examining recent shifts in patent law and policy, highlighting how legislative and judicial reforms have aimed to address issues of patent quality and the delicate balance between the use and abuse of patents. Moreover, it delves into the role of patents in shaping and protecting emerging technologies, from artificial intelligence and biotechnology to clean and sustainable energy.  Concluding remarks and policy reflections follow in Chapter 6.

Nikola Ilić is an Assistant Professor of Economics and Economic Analysis of Law at the University of Belgrade Faculty of Law. During his academic career, he perfected his knowledge of law and economics, among other institutions, at the University of Chicago Sandor-Coase Institute for Law and Economics (2019) and George Mason University Antonin Scalia Law School – Law and Economics Centre (2022). He is a secretary of the Serbian Law and Economics Association (SLEA), a member of the American Law and Economics Association (ALEA) and Managing Editor of the Belgrade Law Review – Annals of the Faculty of Law in Belgrade. Prior to entering academia, Nikola Ilić acquired practical expertise through engagement at an international law firm in Belgrade and passed the Bar exam.