Rewarding Failure with Patents

[Robin Feldman] Abstract: It is axiomatic that patents promote success. And yet, a contrary notion—that the patent incentive for medicine should be sufficient to compensate for the losses incurred when research fails—is quietly permeating modern court decisions, commentary, and Congressional discussions, coloring debates relating to pricing and regulation of medicine. The conceptualization is moving forward unchallenged, as if failure compensation follows logically from the innovation incentives built into the patent construct. As this article demonstrates, however, the notion is antithetical to patent law, putting modern conceptualizations on a collision course with the history and theory of patents reaching back to this nation’s inception.