China is drafting a new patent law that raises the penalty cost of violating patent laws. The goal of the law is to encourage innovation. This article raises the important question of how strong patent laws should be to encourage innovation while still allowing enough freedom for people to innovate on each others ideas.
The draft law is welcomed by many in the legal community, since it tightens IP rights and adds teeth to violations with fines of up to $1 million.
Emma Dahl Comments
It’s interesting to see China strengthening their internal patent laws given how many issues the US has had with the Chinese breaking patent laws. I believe that in general, patent laws discourage economic growth because it slows the process of innovation.
However, if only one country in a trade deal has tight patent laws, it creates a prisoners dilemma of negotiating between (possibly necessary) protectionist policies, and open borders/ economic growth.