Final answer:
Legal fees and other costs incurred in defending a patent are not capitalized but expensed, as they do not typically add to the asset's future economic benefits. Intellectual property rights like patents drive innovation but are not without imperfections, with inventors capturing only part of their creations' value. International harmonization efforts are underway to strengthen IP laws globally.
Step-by-step explanation:
The question pertains to whether legal fees and other costs incurred in successfully defending a patent suit should be capitalized. The short answer is False.
Legal fees and other expenses related to defending a patent are generally considered as expenses that should be recognized during the period they are incurred rather than capitalized. This is because such costs are not associated with the creation or acquisition of an asset but rather with its defense, and according to accounting principles, costs incurred for the defense of an asset do not typically add future economic value that would warrant capitalization.