Question:medium

Which of the following is NOT correct about patents?

Show Hint

Patents expire after a fixed number of years, they do not last forever.
  • Patents stimulate innovation.
  • A patent is a barrier to entry.
  • Patents enable a firm to be a permanent monopoly.
  • Patents encourage invention of new products.
Show Solution

The Correct Option is C

Solution and Explanation

Step 1: Recall the legal definition, a patent is a time bound exclusive right, typically lasting around 20 years from filing.
Step 2: Because the exclusivity has a fixed expiry date, any claim describing it as permanent must be false, while claims about stimulating innovation, blocking entry, and encouraging invention all match how patents actually work.
Step 3: Matching each option against this definition leaves only one contradiction.
\[\boxed{\text{Patents enable a firm to be a permanent monopoly}}\]
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