A patent on a new product benefits the firm securing it by
A) limiting the direct imitation of the product by rivals for many years.
B) enabling the firm to retain "trade secrets" about the product.
C) reducing the firm's legal expenses.
D) increasing the speed of diffusion of the new product.

Question

Quizplus · Accepted Answer

A patent on a new product grants the firm exclusive rights to manufacture, use, and sell the invention for a specific period, usually 20 years from the filing date of the application. This enables the company to prevent direct imitation of the product by competitors, therefore establishing a competitive advantage and market power.

A Patent on a New Product Benefits the Firm Securing