The perm captures all benefits of prizes and avoids the DAs to them
Daniel F. Spulber, 2015 - Elinor Hobbs Distinguished Professor of International Business and Professor of Strategy at the Kellogg School of Management at Northwestern. “Public Prizes versus Market Prices: Should Contents Replace Patents,” 97 J. PAT. & TRADEMARK OFF. SOC'y 690 (2015). Hein Online, Accessed via University of Michigan //DH
I do not argue against either public or private prizes generally - I only address the question of whether prizes should replace prices.27 Both public and private prizes can provide incentives and information that are complements to - but not close substitutes for - the market for inventions. Gary Becker, winner of the Nobel Prize in Economic Sciences, observes that prizes may be useful because of the limited patentability of basic discoveries: "To offset the effect of this exclusion from patent protection on the incentive to discover, individuals and governments have created prizes and awards, like the Fields Medal and Nobel Prizes, for mathematical and scientific discoveries. "28 Public and private prizes can achieve various complementary objectives against the backdrop of IP rights, as long as policy makers do not seek to replace IP rights and the market for inventions.2 9 Petra Moser and Tom Nicholas find historical evidence that prizes provide publicity that encourages patenting and innovation. 30 Fiona S. Murray et al. find that Grand Innovation Prizes are not sub-stitutes for patents but instead serve such goals as awareness, education, and demonstrating the viability of alternatives. 31 Prizes can serve as an inducement to innovation when winners can patent their inventions and indeed find that winning a prize increases patenting.32 Glen Weyl and Jean Tirole provide a general model of market incentives in which public subsidies supplement market prices.33