Does it Matter Who Has the Right to Patent: First-to-invent or First-to-file? Lessons From Canada

Abstract

A switch to a first-to-file patent regime from its first-to-invent system has become imminent for the U.S. To learn about probable effects of such a policy change, we examine a similar switch that occurred in Canada in 1989.We find that the switch failed to stimulate Canadian R&D efforts.Nor did it have any effects on overall patenting.However, the reforms had a small adverse effect on domestic-oriented industries and skewed the ownership structure of patented inventions towards large corporations, away from independent inventors and small businesses.These findings challenge the merits of adopting a first-to-file patent regime.

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