Final answer:
A patent gives an inventor exclusive rights to their invention for a set period, typically 20 years, to incentivize innovation. After the patent expires, the invention enters the public domain, allowing others to manufacture or sell the product, promoting competition. International laws are harmonized via treaties to respect intellectual property globally.
Step-by-step explanation:
In the realm of intellectual property rights, a patent grants an inventor exclusive rights to make, use, or sell an invention for a predetermined period. This legal framework is crucial for innovative firms to recover their investments in research and development (R&D). Once a patent expires, other entities are allowed to produce the patented product, potentially at a lower cost, thus stimulating market competition and innovation continuity.
A patent typically lasts for 20 years from the filing date, which provides the patent holder a temporary monopoly. During this exclusive period, a firm may earn profits beyond the usual competitive levels. This is a powerful incentive for the creation of new products and technologies. However, after this period, the patented invention enters the public domain, and any firm can manufacture or sell the product without infringing the patent, fostering a competitive market that benefits consumers.
International negotiations through organizations like the World Intellectual Property Organization (WIPO) and various treaties aim to harmonize intellectual property laws across countries, affecting how long and to what extent patents and copyrights are respected internationally.