Final answer:
The Hatch-Waxman Act is crucial for balancing patent protection and drug affordability, and reducing patent protection time could decrease R&D. Antitrust laws play an important role, but their impact in a global market necessitates careful consideration.
Step-by-step explanation:
The Drug Price Competition and Patent Term Restoration Act, commonly known as the Hatch-Waxman Act, bridges the gap between patent protection and drug affordability. By allowing generic drug manufacturers to use the research findings of brand-name drugs without starting from scratch, the act makes generic pharmaceuticals significantly cheaper. Nonetheless, it maintains an incentive for innovation by providing the original developers with a limited period of exclusive rights to reap the financial rewards of their investment.
If Congress reduced the period of patent protection from 20 years to 10 years, it would likely lead to a decrease in the amount of private research and development (R&D). The shortened period of exclusivity would diminish the potential returns on investment in R&D, possibly leading to less innovative activity as companies may find that the costs outweigh the benefits.
Regarding antitrust laws, they are essential for preventing unfair competition and maintaining a healthy level of competition within the market. However, in a global market, the implications of breaking up large firms must be carefully weighed, as such actions could impact the firm's ability to compete internationally.