Intellectual property rights have been heralded by small and big business alike, permitting some to grab an important foothold within the market. But can some intellectual property rights actually serve to stunt the growth of their respective industry?
The University of Chicago released a study that contained telling evidence to confirm the negative impact. The truth of the matter is that some intellectual property rights can actually serve to impede innovation altogether, illustrating the nature of such property rights functioning as somewhat of a ‘catch 22’ given the circumstance.
Researchers compared the sequencing of the human genome by the public Human Genome Project alongside the firm Celera, the latter available through the public domain. Although the intellectual property rights only spanned two years, Celera was able to charge substantial fees for access to their patent information.
Those involved in the study also indicated a 20-30 percent reduction in subsequent scientific research and product development for genes controlled by Celera’s intellectual property. This reduction is marked as a significant impediment to scientific advancement.
Some of this negative impact can arguably be seen within the smartphone market, many companies clamoring for intellectual property rights over debatably universal features.