Patent rights exist to solve a fundamental economic problem: Inventors need incentives to innovate, but after revealing an invention, others can copy freely. The patent system grants limited monopolies to inventors in exchange for public disclosure. This is the patent system as God intended. But the patent system has struggled mightily with a second problem, a problem that Ronald Coase identified decades ago: transaction costs. A "transaction cost" for Coase isn't just a brokerage fee; it's anything that can prevent a transaction from occurring. I submit that today, AI agents stand poised to solve many of the problems with transaction costs that have faced the patent system, creating what has been called a "Coasean Singularity" in patent law — a transformation that will reshape how inventors create, patent owners monetize, and lawyers practice.
riemannzeta•3h ago