What Is a Medical Patent?
A medical patent is legal protection granted by the government to the inventor of a unique physical item or process with a medical purpose. A medical patent, like other types of patents, prevents competitors from making, using, or selling the patented item or process for a limited time.
- A medical patent is legal protection granted by the government to the inventor of a unique physical item or process with a medical purpose.
- Biotech companies use medical patents to protect their intellectual property rights to items such as drugs.
- In the United States, patents are categorized as utility, design, or plant and medical patents fall under the plant category.
Understanding a Medical Patent
A patent is a type of intellectual property right and a key driver of value for biotech companies. Biotech companies use medical patents to protect their intellectual property rights to items such as drugs. A patented drug is protected against generic competition for a specified number of years, which lets the company that developed it earn high profits that help compensate for the high research and development costs to bring the drug to market, but can also make the drug unaffordable for low-income patients.
The United States Patent and Trademark Office grants patents in the United States, and these patents are valid for 20 years. In the United States, the three categories of patents are utility patents, design patents, and plant patents. Utility patents apply to machines, processes, and manufactured objects as well as to useful improvements on these items. Design patents provide protection for the ornamental design of something that has a practical utility. A 1980 Supreme Court ruling made plant patents possible when it allowed the patenting of living, man-made organisms, a key to the success of biotechnology firms.
Medical Patents Value to Companies
Other examples of health care patents include patents for software that helps physicians manage patients, patents for prosthetic limbs, and patents for physical therapy devices, such as back braces. Patents may be owned by one company but licensed for use by another, making it possible for more than one company to profit from a patent.
If one company thinks another has violated patent law, it can file a patent infringement dispute in court to try to stop the other company from using its patented technology. Patent infringement can cause problems for investors if it reduces the profitability of the company whose patent is being infringed upon, or if a company must stop selling an important product or is sued because it is found guilty of patent infringement.
Biotechnology patents are a controversial subject. Those in favor of biotech patents argue that they support scientific progress because they promise financial rewards to individuals and companies who successfully create new products that they can sell exclusively for a few years at a lucrative price. Those opposed to biotechnology patents argue that they are unethical because the high prices they generate limit access to health care for poorer individuals, especially in developing countries.