Question:
Which of the following is NOT correct about patents?
Which of the following is NOT correct about patents?
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Patents expire after a fixed number of years, they do not last forever.
Updated On: Jul 3, 2026
- Patents stimulate innovation.
- A patent is a barrier to entry.
- Patents enable a firm to be a permanent monopoly.
- Patents encourage invention of new products.
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The Correct Option is C
Solution and Explanation
Step 1: A patent gives an inventor exclusive rights, which stimulates innovation and encourages new inventions, so options 1 and 4 are correct.
Step 2: Since only the patent holder can use the invention, it acts as a barrier preventing other firms from entering that specific market, so option 2 is also correct.
Step 3: A patent is granted only for a fixed term, usually about 20 years, after which the invention becomes public. It never gives a permanent monopoly, so option 3 is the incorrect statement.
Step 2: Since only the patent holder can use the invention, it acts as a barrier preventing other firms from entering that specific market, so option 2 is also correct.
Step 3: A patent is granted only for a fixed term, usually about 20 years, after which the invention becomes public. It never gives a permanent monopoly, so option 3 is the incorrect statement.
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