Assume that an entrepreneur obtained a patent and produced a product based on it. Another entrepreneur purchased the product,studied it,and designed a new product that was even better than the one patented by the first entrepreneur. What the second entrepreneur did is known as
A) inventing around.
B) illegal.
C) first mover strategy.
D) arrow's paradox.
E) efficacy.

Question

Quizplus · Accepted Answer

The second entrepreneur invented around the first entrepreneur's patent by designing a new product that improved upon the patented product without infringing on the patent itself. This is a legal strategy to avoid patent infringement and create something unique.

Assume That an Entrepreneur Obtained a Patent and Produced a Product