[AnthonyMouse]

The difference is, a property right to a single parcel of land doesn't give you market power. You don't own every similar parcel of land. It isn't a monopoly in the antitrust sense. But a patent on a device does exactly that.

[dragonwriter]

> The difference is, a property right to a single parcel of land doesn't give you market power.

Depends on the features of the parcel and the nature of the market for use of it.

[AnthonyMouse]

> Depends on the features of the parcel and the nature of the market for use of it.

And in the patent case it doesn't.

[dragonwriter]

Sure it does; there's no pricing (and therefore market) power if the mechanism, however novel and eligible for protection, has alternatives with equal utility.

[AnthonyMouse]

> Sure it does; there's no pricing (and therefore market) power if the mechanism, however novel and eligible for protection, has alternatives with equal utility.

That's kind of the point. A patent by its nature has zero value without market power.

Contrast this with actual property. If you have wheat or copper, you have no market power, it's a pure commodity market, but people will still pay you something for it.

[throwawaykf05]

Of course it does. The claims define what a patent covers. Noting that the vast majority (95%+?) of patents go unused, it's reasonable to assume that they have some correlation with market usage. What other hypothesis would you posit for the over abundance of value-less patents? Mine is that most ideas have no market value terrible, hence most patents don't either.

[AnthonyMouse]

> The claims define what a patent covers.

And then it covers all of them. The whole market. It's like if you owned a ranch house on a beach and that caused you to become the owner of every ranch house on every beach, and if someone built a new one somewhere else on some land that isn't yours then you would become the owner of it too. That's not how real property works.

And you're confusing the value of the market with control over it. It's possible to have a total monopoly on some useless junk nobody wants.

[dragonwriter]

In the antitrust sense, the standard set upthread, market power requires pricing power, which inn turn requires that there is both some market demand and inefficient competition from market substitutes (which need not be identical) to constrain the monopolists ability to set prices and extract rents.

[AnthonyMouse]

Pricing power doesn't actually require demand, it's just that nobody cares about the markets where there is no demand. But it's still a monopoly, which you would notice immediately if any demand ever came to exist, the hope for which is why people even bother applying for those patents.