Thus, according to Heller and Eisenberg, useful innovations that build on earlier patented inventions can be inhibited by the high transaction costs from negotiating with the earlier patentees. There are several compelling arguments that patents aren't really that economically efficient for organizations. For instance, Bessen and Meurer (2008) point out the complexity of the patent system; stating that a prospective technology investor would need to check a very large number of patents. If a company is selling online, these authors cite a patent risk management firm as saying there are more than 4,319 patents a company could be violating. or, if a company advertises, receives payments for goods or ships goods, there are approximately 11,000 patents that the company should check into. Further, Bessen and Meurer (2008) believe that America's patent system isn't efficient because it doesn't offer clear and efficient notice of the boundaries of the rights granted. As a result, expensive patent litigation is common and the costs of patents now outweigh the benefits bestowed through protection. .

In summary, patents do not always facilitate and encourage disclosure...

Reform may be needed in areas such as public health interests, "patent trolling," fragmentation and legal complexity.
Bibliography

Banta, DH (2001). Worldwide interest in global access to drugs. The Journal of the American Medical Association, 285 (22), 2844-2846

Bessen, J. And Meurer, M.J. (2008). Patent failure How judges, bureaucrats and lawyers put innovators at risk. Princeton, NJ: Princeton University Press.

Frequently asked questions (FAQs). World Intellectual Property Organization. http://www.wipo.int/patentscope/en/patents_faq.html#protection

Patent -- economic rationale. Encyclopedia II. http://www.experiencefestival.com/a/Patent_-_Economic_rationale/id/5367152

Quinion, M. (2006, June 17). Patent troll. http://www.worldwidewords.org/turnsofphrase/tp-pat1.htm

Silverman, a.B. (1995). The relationship between basic and improvement patents. JOM, 47 (1), p. 50. http://www.tms.org/pubs/journals/JOM/matters/matters-9501.html