At a time when innovative American companies are moving technology forward at often dizzying rates, today’s Federal Trade Commission (FTC) seems to be bent on thwarting that innovation by taking a giant leap backwards by pitting antitrust against patents – a stance that has not been seen decades.
In the 1970s, the relationship between antitrust and patents was viewed as a conflict. Patents, by their nature, create a limited monopoly. This limited monopoly, during which the patentee may be able to exclusively sell their product or license their technology to other companies, provides the patentee the potential to recoup the investments made in research and development. This income, in turn, allows the patentee to take up new avenues of invention and innovation. Antitrust, on the other hand, is intended to prevent or minimize the impact of monopolies. The basic idea is that competition amongst companies in any given market produces benefits for consumers.
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