e-journal
COSTLY SCREENS AND PATENT EXAMINATION
              ABSTRACT
The United States Patent and Trademark Office has acquired a well-deserved reputation
for inefficacy and inefficiency. Proposals for reforming the patent office
have thus focused on improving the quality of patent review while decreasing
its cost. Yet this view overlooks the valuable function performed by the high
costs associated with obtaining a patent: these costs serve as an effective screen
against low-value patents. Moreover, due to asymmetries in patent values, the
costly screen is likely to select against socially harmful patents in disproportionate
numbers. Although the patent office is the most prominent forum in which this
type of costly screening operates, it is not the only one. In a variety of other contexts,
the private costs of navigating an administrative process may complement
the process itself in screening out unwanted participants.            
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