economic question : Explain why biotech companies are willing to sell their patents to big pharmaceutical...

economic question : Explain why biotech companies are willing to sell their patents to big pharmaceutical companies and why those big companies are willing to purchase the patents. Use a diagram to show the minimum and maximum price of the patent

Expert Solution

A patent is a property right granted to the inventor of a novel & nonobvious invention. Because the invention must be novel and because it cannot be obvious to one ordinarily skilled in the art, the grant of the property right cannot interfere with the public’s access to what already exists.

There is A win - win situation when a biotech company is willing to sell their patents to big pharmaceutical company. The biotech companies are mend to make new drugs or solution that could create a new space in market. So these drugs could be used by other pharmaceutical company to capture the market space.

These big companies are willing to buy the patent so that no other competitor get the advantage which these company will get after acquiring patent. And by selling patent the biotect company will make money.

This creat a win-win situation for both the entity and hence considered worldwide.

The maximum and minimum price of the patent depend on the geography. Like in which country it is being granted. Considering India for example...

Rahul Sunny answered 2 years ago

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