patent

patent definition - business

patent

  1. The original document issued granting public land to an individual.
  2. A government grant giving the owner the exclusive but temporary right to make, use, or sell the item cited in the patent.
Case Study Patents offer an incentive to inventors, whose patents give them a limited-time monopoly during which they have exclusive use of their creations. In spring 2007, the U.S. Supreme Court rendered an important decision that made it easier to challenge the rights of patent holders. The case involved an adjustable accelerator in vehicles with electronic engine controls. In general, an invention can be eligible for patent only if it is useful, novel, and not obvious to a person of ordinary skill in the field. A Canadian company operating as a subcontractor for General Motors challenged the patent of a rival company on the basis that the combination of elements involved in the adjustable accelerator was obvious. The district court agreed with the plaintiff, but the U.S. Circuit Court of Appeals, to which patent case appeals are sent, overturned the decision. The court of appeals had historically made obviousness difficult and expensive to prove. This interpretation by the main judicial body overseeing patent law made patents relatively easy to protect. Critics claimed the strict interpretation of obviousness stifled innovation and competition. The Supreme Court ruling negated the circuit court's interpretation of obviousness as applied to patent eligibility. The decision was expected to have important ramifications for technology companies, especially those involved in software design.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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