The patent exchange furthers the Founding Fathers’ intent. In the following posts, I would like to demonstrate that (1) the Founding Fathers’ intended for the Patent Clause (Article 1, Section 8, Clause 8) to promote creation on inventions; (2) creation on inventions adds the most value to society; (3) traditional monetization means does not promote creation on inventions; and (4) the patent exchange will promote creation and, hence, further the Founding Fathers’ vision of the Patent Clause.
In this post, I will be discussing (4) how the patent exchange will promote creation and, hence, further the Founding Fathers’ vision of the Patent Clause.
The patent exchange creates a direct tie between monetization and creation.
If you are patent supplier to the exchange and if your asset sees market adoption, there will be more demand and, thus, trading on the asset.
Why? Because if the asset is or will likely be practiced, then there are or a high likelihood of infringers—this creates an avenue to generate revenue from the asset (e.g., via licensing). The more potential licensing revenue to generate off of the asset, the more demand and, thus, trading on the asset.
Hence, a patent supplier is incentivized to create on the asset or create an impression there is will or will likely be commercial adoption—this will directly lead to demand and trade, i.e., revenue.
To create such an impression, the patent supplier may, as examples, publicize the inventive concept, conduct research to show market applicability, etc.
The point being, the monetization structure of the patent exchange creates a direct correlation between monetization and creation. It, therefore, provides a monetization structure that furthers the Founding Fathers’ vision of the Patent Clause.
