An anonymous reader writes "Current orthodoxy claims patents encourage innovation, by allowing developers to enjoy profitable monopolies on their inventions which in turn inspire them to create new inventions. A new report by the non-partisan General Accounting Office suggests that this orthodoxy is wrong — at least when **** companies are involved. According to the report, existing patent law allows **** companies to patent, and make substantial profits off of, "new" ****s which differ little from existing medicines. Given high profit margins on very minor innovations, the report argues that **** companies have little incentive to produce innovative new ****s. In other words, current patent law actually discourages **** companies from producing new medicines. Responding to the report, Senator **** Durbin (D-IL) released a strongly worded statement suggesting that a legislative response will be forthcoming. "The findings in this new GAO report," said Senator Durbin, "raise serious questions about the pharmaceutical industry claims that there is a connection between new **** development and the soaring price of ****s already on the market. Most troubling is the notion that pharmaceutical industry profits are coming at the expense of consumers in the form of higher prices and fewer new ****s.""
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Report Says Patents Prevent New ****s
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