Tragedy of the Anti-Commons

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The Tragedy of the Anti-Commons

Steve Webber on the "the tragedy of the anti-commons." Let's say I'm a researcher working at a small biotech firm here in the Bay Area. And I think there's something interesting I would like to do with a particular molecule and its interaction with a particular gene. Much of this stuff is now patented, and there are so many competing patent claims on so many different parts of the things I would need to work on, that the cost of actually figuring out what permissions I need are astronomical. So lots of small companies simply can't work on it.

They call it the tragedy of the anti-commons in the sense that in order to work on this, they've got to get a permission to use this molecule and a license to play with this gene. That's just too expensive, so they walk away from it. I don't have a quantitative model that can describe for you how much wasted effort or dead weight results from this problem. But I can tell you, there's a lot of anecdotal evidence. There are companies that patent gene sequences, knowing full well that these patents would never be upheld in court, because they haven't added any value. They also know full well that if a pharmaceutical company decides it wants to do something with that gene, it's more likely just to pay the company $150,000 or $200,000, rather than spend a year or 18 months fighting the patent in court. It's kind of tragic."

See also the Tragedy of the Commons