Drug Companies and Games they Play
Drug Companies and Patents
Corporations around the universe are investing in research and development to ward off rivals in diverse manufacturing areas. Through research, firms may come up with new procedures or items. Once the companies have developed modern techniques or revolutionized a novel product, they obtain the comprehensive power of utilizing the same in diverse dimensions. Upon patenting the products or processes, the rule forbids any other corporation from utilizing the same. It indicates that the corporations may not imitate or duplicate any of the stages or products once the company involved has patented them. Product or process patenting is frequently offered a duration within which it is binding. The monopolistic element arises when the exclusivity of the knowledge of the products or processes is sealed by the corporation coherent with the country’s regulations (Moazed 12). The guideline is conferred to the company by the worldwide society of patents. The procedures assist the companies to enhance their productivity levels in diverse methods. The process owners or products have comprehensive privileges of retailing similar products. Moreover, it is worth noticing that the proprietor may command the products or processes’ prices. This is attributed to the component of exclusiveness.
After the patent fortification for a particular technology runs out, other companies are allowed to duplicate the products or processes without distressing about any legal concerns that may be guaranteed to surface at some stage during the manufacturing process. The other corporations within the industry shall be free to start manufacturing their products through the same acquaintance or even advance on the same. The product or process owner may be conspicuous from the market rivals through differentiation. The company can develop distinctive characteristics of the products or procedures to overcome the stiff rivalry in the operations field.
It is a regular occurrence for patent owners resorting to pay-for-delay. Analysts contended that patent owners’ pronouncement to taking this type of action while it is still significant amounts to bribing the rivals to loot the clients. The patent holder may go an additional mile to guarantee that they hold the same longer to obtain more revenue from the same in the long run. According to Jones, one of the aims of this practice has to be very common in the contemporary periods is stringent patent guidelines(1398). The competitors within the industry, in some instances, are compelled to test the owners so that they may triumph within the industry. The rivals may additionally remind the holders that there is nothing different regarding the technology discussed. Therefore, this will force them to pay for an interruption to produce extra from the same.
Pay-for-delay strategies should not be permissible in the industry since their ultimate outcome is negative. If all the corporations apply similar tactics, just competition may not be applicable in this scenario. Various corporations resort to deceitful strategies, for instance, pay-for-delay, to create a monopoly within the market. These types of companies want to preserve their technological advancements to obtain more profits from the same. The tactic aids such corporations in making errors while in operations. However, they are convinced that the regulations will safeguard them despite their mistakes. Pharmaceutical corporations frequently discover themselves in a catch-22 scenario since they are continuously exploring to cultivate new products and processes for the industry. From an economic viewpoint, the pay-for-delay method perhaps benefits due to the higher costs. With a restricted supply, the demand shall be high, particularly if the people require them. On the other hand, a viable industry comprising manufacturers retailing the same goods is always good. However, pay-for-delay strategies should not occur. With how various items may be costly, it is not factual for a monopoly to essentially compensate smaller corporations retailing products as commendable to store and in customer’s hands.