Prize financing is different from patent prize financing. The CP provides financial rewards for innovation and makes the innovation publicly available. A patent prize means the patent is the prize – which means the company gets exclusive rights
Dean Baker et al, 2017 - co-director of the Center for Economic and Policy Research in Washington “Innovation, Intellectual Property, and Development: A BETTER SET OF APPROACHES FOR THE 21st CENTURY.” https://cepr.net/images/stories/reports/baker-jayadev-stiglitz-innovation-ip-development-2017-07.pdf //DH
3. Prize financing system – this is a system where a governmental body or a private foundation/research institution awards a prize for a successful innovation (or other creative activity). There have been some famous historical examples of prize systems, most notably the prize posted by the British government in 1714 for a method to accurately measure longitude, and another posted by the Royal Society for Arts and Technology for a mechanical solution to replace chimney sweeps. While prize systems are not currently in widespread use by governments, there are many prizes being privately offered. In recent years, there have been proposals in the US to provide prizes for drugs research (as proposed by Senator Sanders15) and for the development of renewable energy.
The patent, of course, is a prize (see below). Here, however, it is as if the government (or other party offering the prize) buys the patent, based on an assessment of its value, and then places it in the public domain so that its benefits could be realised as fully as possible, since it would be available at a relatively low licensing fee.
4. Patent ‘prize’ financing decentralised system – this is the predominant mechanism of government support for research. In this case the prize is the government imposed monopoly that allows the holder of a patent, copyright, or other claim exclusivity and to charge prices in excess of the free market price for the duration of the monopoly.16