The alternative is trade secrets which causes higher prices
David Kappos, 2019 - Questions for the Record for the Honorable David J. Kappos Senate Committee on the Judiciary Subcommittee on Intellectual Property Hearing on “The State of Patent Eligibility in America: Part I” June 4, 2019, https://www.judiciary.senate.gov/imo/media/doc/Kappos%20Responses%20to%20QFRs.pdf //DH
c. Could the proposed reforms increase consumer prices? If so, in what industries or on what products?
i. I do not believe the proposed reforms will increase consumer prices. Instead, I believe the proposed reforms will increase the rate of investment in innovative technologies, which will increase the rate of innovation. Increased innovation leads to more products in the market, and more products in the market place leads to cost-lowering competition.
ii. Further, patent rights expire, which means any potential short-term increase in consumer prices is necessarily limited to the length of the patent rights protecting the consumer products. After the patent expires, the innovation inures to the public benefit forever. The alternative to this limited-term patent protection is trade secrecy, which can lead to indefinitely higher consumer prices.