2 --- ENFORCEMENT --- Plan would need to make exclusivity into take-and-pay
Jerome H. Reichman and Ana Santos Rutschman ’24, Bunyan S. Womble Professor of Law at Duke Law School focusing largely on IP law including comparative and international IP law and former special advisor to the United States National Academies and the International Council for Science (ICSU) on the subject of legal protection for databases, teaches and researches IP law including being a internationally recognized expert on vaccine law and Bio Intellectual Property Scholar in 2017, “A Codified Liability Regime to Stimulate Greater Investment in Subpatentable Innovation,” UC Davis Law Review, February 2024, Vol. 57, Pg 2046, https://lawreview.law.ucdavis.edu/archives/57/3/codified-liability-regime-stimulate-greater-investment-subpatentable-innovation, Accessed 7-15-2024 by NT-RS through LexisNexis
What this Article suggests instead is that a better solution is to codify a liability rule to stimulate investment in subpatentable innovation from the outset. Such a regime would defend investors from the risks of forfeiture arising from a system of unbridled and efficient competition, i.e., copying; but it would not reward the innovator with a lengthy period of exclusivity, so much as with a limited form of “take-and-pay” protection under a codified compulsory license. This liability rule would thus make copiers ex post partners in the innovative venture for a specified period of time, as in the manner of a compulsory license. In this case, however, the number of partners subject to de facto compulsory licenses is unlimited in principle from the start. Revenues from a codified liability rule would constitute a market-based reward to the subpatentable innovator, because the more that copiers serve the public interest in access to innovation, the bigger the reward to the subpatentable innovator for the otherwise risky investment in such subpatentable innovation to begin with. Another way to put it is that, while compulsory licenses already exist as a remedy of last resort, this proposal would turn them into an ex ante modality of compensation for innovative contributions.