2.1 A BRIEF HISTORY OF PATENT LAW

It is rather difficult to pinpoint exactly when and where the patent system originated. We may regard the exclusive rights granted by kings, rulers, municipalities, or guilds to individuals in exchange for their performing some arduous task as the precursor of the patent system. For example, a medieval prince who wanted to have a bridge built over a dangerous river crossing could have said to one of his barons: “If you build us a sturdy bridge across this river at this place, I will grant you the right to collect toll from those who want to use your bridge and I will prevent others from building competing bridges.” In this manner, the baron was satisfied that his bridge-building investment was protected and that he would have a steady stream of income at least as long as the prince was in power.

The first formal patent system may be traced to the medieval city-state of Venice, a powerful trading center during the Renaissance. Venetian patent laws allowed the government to destroy devices competing with those of the inventor, which is basically what happens today when a patent holder wins an infringement suit. In passing their patent law in 1474, the Venetian government declared that granting patent privileges to individuals for their inventions and manufactures would motivate others to emulate the holder of the patent right, leading to even more innovation. The recognition that patents encourage competition is the basis of all subsequent patent ...

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