"The most recent call for curtailing patents comes not just from an unexpected source, the St. Louis Fed, but also in its most basic form: total abolition of all patents. Via the Atlantic Monthly: a new working paper (PDF) from two members of the St. Louis Federal Reserve, Michele Boldrin and David Levine, in which they argue that while a weak patent system may mildly increase innovation with limited side-effects, such a system can never be contained and will inevitably lead to a stifling patent system such as that presently found in the U.S. They argue: '...strong patent systems retard innovation with many negative side-effects. ... the political demand for stronger patent protection comes from old and stagnant industries and firms, not from new and innovative ones. Hence the best solution is to abolish patents entirely through strong constitutional measures and to find other legislative instruments, less open to lobbying and rent-seeking.' They acknowledge that some industries could suffer under a such a system. They single out pharma, and suggest other legislative measures be found to foster innovation whenever there is clear evidence that laissez-faire under-supplies it."
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