The Pathologies of Data-Generating Patents

Abstract

Previously, we introduced the concept of “data-generating patents,” which are patented inventions that by design produce valuable data through their operation or use. When holders of data-generating patents possess market power over the patented invention, they often indirectly enjoy market power over the data generated by the invention. Here, we focus on concerns raised by biomedical data-generating patents, particularly in the context of the rise of “big data.” Data-generating patents are prevalent in the biomedical field and include patents covering genetic diagnostic tests, implantable and other medical devices, as well as consumer gadgets that track, store, and analyze information about patients and users.

Keywords: patents, trade secrets, big data, medical diagnostic tests, biotechnology, biomedical, Myriad

JEL Classification: L1, L2,L5, L63, L65, O3, O34