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Business Method Patents, Innovation, and Policy

Author

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  • Bronwyn H. Hall

    (Department of Economics, University of California, Berkeley)

Abstract

The trickle of business method patents issued by the United States Patent Office became a flood after the State Street Bank decision in 1998. Many scholars, both legal and economic, have critiqued both the quality of these patents and the decision itself. This paper discusses the likely impact of these patents on innovation. It first reviews the facts about business method and internet patents briefly and then explores what economists know about the relationship between the patent system and innovation. It concludes by finding some consensus in the literature about the problems associated with this particular expansion of patentable subject matter, highlighting remaining areas of disagreement, and suggesting where there are major gaps in our understanding of the impact of these patents.

Suggested Citation

  • Bronwyn H. Hall, 2004. "Business Method Patents, Innovation, and Policy," Law and Economics 0401001, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwple:0401001
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    References listed on IDEAS

    as
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    3. Jonathan Levin & Richard Levin, "undated". "Patent Oppositions," Yale Law School John M. Olin Center for Studies in Law, Economics, and Public Policy Working Paper Series yale_lepp-1005, Yale Law School John M. Olin Center for Studies in Law, Economics, and Public Policy.
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    5. Hall, Bronwyn H. & Graham, Stuart J. H. & Harhoff, Dietmar & Mowery, David C., 2003. "Prospects for Improving U.S. Patent Quality via Post-grant Opposition," Department of Economics, Working Paper Series qt4wq4g70r, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    6. Robert M. Hunt, 2001. "You can patent that? Are patents on computer programs and business methods good for the new economy?," Business Review, Federal Reserve Bank of Philadelphia, issue Q1, pages 5-15.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • K3 - Law and Economics - - Other Substantive Areas of Law
    • O0 - Economic Development, Innovation, Technological Change, and Growth - - General
    • L4 - Industrial Organization - - Antitrust Issues and Policies

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    1. Socio-Economics of Innovation

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