The patent = monopoly logic is flawed – patent rights do not grant monopoly power per se

Conclusion. At this juncture, it has been recalled that the patent=monopoly theorem is false. In reality, whilst patent protection may assist in granting market power, this is contingent on a large number of factors. And unlike in other areas, the economic literature is consensual on the fact that patent rights do not grant monopoly power per se. 41 AREEDA and HOVENKAMP best summarize this: “a trademark, copyright, or patent excludes others from duplicating the covered name, work, product (etc.) but does not typically exclude rivals from the market. Accordingly, market power cannot be inferred, even presumptively, from the possession of intellectual property”.42 If patented products or technologies are successful in the market and end up providing some market power on the patent holder, this is generally not due to the patent right but to other circumstances such as lead time advantage in bringing the product on the market, successful marketing, better cost management etc.