In "The Princess and the Pea," an old queen proves that a midnight traveler is a true princess by hiding a pea under an almost unbelievable number of mattresses and down bedclothes.
The law also includes an incentive for generic companies to challenge patents: six months of market exclusivity granted to "First generics," meaning that no other generic application for the same drug can be approved for that period of time.
Without the incentive, generic companies may be less likely to take on the expense of litigation to challenge a patent, since a victory in court could open up the market to multiple competitors simultaneously.
Congress wanted more generics, so they gave generics an incentive to sue innovative drug companies - they inserted the pea under the mattress.
Congress isn't happy with the market solution, so they are going to put another pea under the mattress.
We should let them know that eroding the incentives for innovators to invent won't make that happen and that changing a whole market because of outliers is even worse.
A Congressional attempt to micromanage a market is a recipe for failure.
https://spectator.org/government-regulations-the-princess-and-pea/
The law also includes an incentive for generic companies to challenge patents: six months of market exclusivity granted to "First generics," meaning that no other generic application for the same drug can be approved for that period of time.
Without the incentive, generic companies may be less likely to take on the expense of litigation to challenge a patent, since a victory in court could open up the market to multiple competitors simultaneously.
Congress wanted more generics, so they gave generics an incentive to sue innovative drug companies - they inserted the pea under the mattress.
Congress isn't happy with the market solution, so they are going to put another pea under the mattress.
We should let them know that eroding the incentives for innovators to invent won't make that happen and that changing a whole market because of outliers is even worse.
A Congressional attempt to micromanage a market is a recipe for failure.
https://spectator.org/government-regulations-the-princess-and-pea/
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