ABSTRACT
Patent rights seem to be a policy instrument that provokes great controversy. Proponents claim that, although not perfect in design, patent systems facilitate innovation, stimulate economic growth and therefore raise social welfare. Opponents point out that patent systems create an entry barrier for small innovative firms, are used as an anti-competitive device and bar access tomodern technologies for poor countries; thus, patent systems reduce social welfare. Discussions about the advantages and disadvantages have accompanied the entire history of patent systems and will certainly continue.
