The nonmanufacturing patent owner: Toward a theory of efficient infringement

Patent law provides for injunctive relief against infringers. Courts rarely deny a patent owner's request for injunctive relief, regardless of the actual harm being suffered by the patent owner because of a presumption of irreparable harm in patent cases, a presumption seen as necessary to promote invention. This Comment explores the justifications and goals of the patent system as well as economic theories as applied to law, and argues that injunctive relief for intentionally nonmanufacturing patent owners is antithetical to the goals of the patent system and is economically inefficient as well. As a result, the Comment proposes a model of "efficient infringement," whereby the use of liability rules within the context of patent litigation will promote the commercialization of patents and concomitant wealth maximization.