Legal Definitions - incentive-to-design-around theory

The incentive-to-design-around theory is an economic theory that justifies the granting of patent rights. It is based on the idea that patents encourage others to design substitutes and improvements that are better or cheaper.

For example, if a company holds a patent for a particular product, other companies may be incentivized to design around the patent by creating a similar product that does not infringe on the patent. This competition can lead to better and cheaper products for consumers.

The incentive-to-design-around theory is one of several theories that support the granting of patent rights. Other theories include the incentive-to-commercialize theory, the incentive-to-disclose theory, and the incentive-to-invent theory.