Lack of patents undermines collaborative development

(Amy, Professor of Law, Drexel University Thomas R. Kline School of Law, “The Antipatent: A Proposal for Startup Immunity,” pg online @ https://digitalcommons.unl.edu/cgi/viewcontent.cgi?article=2808&context=nlr //pa-ef)

Further, patents facilitate engagement with others, whether through collaboration, integration, or licensing.345 Invention and product development rely on a mix of inflows and outflows of knowledge.346 These interactions can be important for a number of reasons, including the development of products that require competencies from more than one specialty.347 These relationships are built on a more complex set of considerations that include inbound and outbound licensing of intellectual property rights.348 A company that lacks IP might be hindered in collaborative development, particularly if the proposed collaborator owns strong rights but cannot expect to receive any useful licenses in return.349 Further, patents facilitate contractual relationships with upstream suppliers and downstream manufacturers, and prevent such partners from converting themselves into competitive adversaries.350