(Nowy Sacz School of Business – National-Louis University, 2012) Levy, Haim V.
The transformation of innovation into commercial value depends primarily on appropriate
protection of the intellectual property, usually by patents, and efficient pathway(s) of its
transferability as well as the transfer of the protected knowledge. The key features of
patents, from an economic perspective, are that they encompass new knowledge and
confer monopoly rights to the owner. The exclusiveness of patent rights is generally
conceived as a necessary mechanism to ensure further innovation, stimulate advanced
research and facilitate efficient market transactions with patent rights. The patent holder
can transfer the technology embodied by way of granting to others a license to use the
patented invention in return for a share of the revenues, usually royalties. Patent rights
transferability has been proven to be efficient and profitable to the industry as well
as beneficial to the welfare of society. The economic and practical perspectives of the
transferability and commercialization of patent rights are discussed.