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Monday, September 29, 2003

Patently unfair? 

The New York Times is carrying an interesting story, based on the dissertation research done by MIT economist, Petra Moser, on patents and the nature of innovation. Her research seems to confirm one of my beliefs -- that patents aren't good for developing countries in and of itself. After all, the U.S. played its incredible catch-up game during the Industrial revolution/19th century by not giving a damn about patents and intellectual property protection.

For example, The French inventor Hippolyte Mège-Mouriez, who invented margarine in 1870, blithely showed his invention to two Dutch entrepreneurs. Mr. Mège-Mouriez, having received a patent, felt confident that his idea was protected. The Dutch entrepreneurs took the Frenchman's ideas, improved on them (keeping their improvements secret) and established a thriving margarine business that in the 20th century merged into the multinational conglomerate Unilever. Mr. Mège-Mouriez died a pauper.

So what is the lesson for Brazil, China, India and other countries that are being pressed by industrialized nations to create strong patent systems? "We try to force patent laws on developing countries and say, This is best for you," she said. "Then we are surprised when they say they don't want patent laws. But they have a point. Such laws could actually hinder innovation in those countries."