Patents; a government authority or licence conferring a right or title for a set period, especially the sole right to exclude others from making, using, or selling an invention
The very definition of patents holds true in every sense. What doesn't however is the concept of patents giving an edge to a company over an other in a business sense rather than it being useful to everyone in general. The current model of business requires patents to generate revenue in order to survive in this competitive environment. That in most cases negates the very concept of useful, which happens by putting a hefty price tag on access to such innovation by the consumer.
A simple strategy can use this current model to benefit those who don't have the basic necessities for survival. It requires the cooperation of governments, companies and all platforms (Universities, R&D Companies etc.) that develop new technologies.
When a patent application is being made the government should provide companies/people who patent these new technologies with a tax cut. This only applies when the person/company uses a percentage of the royalties received to fund charitable organisations around the world. The outcome would benefit the company or person who patented the technology. The person receives money for their efforts in research and development while a company stands to make profits from endeavours. The tax cut provides motivation to businesses/people who would otherwise pay the government hefty taxes depending on the amount received as royalties. The price of the patent may come down depending on the percentage of tax cuts there by possibly reducing the price of the end product for the consumer.
Here is an example of how the system would work:
Personal:
The current tax paid by a person earning more than USD 390,000 is 35% .
If this person earns USD 800,000 then he/she effectively pays USD 280,000 as tax.
Now if this person where to register the patent under the system mentioned above and the tax rate was cut by 5% he would only play USD 240,000. The remaining 40,000 is broken up as 25% to charity and 75% as tax returns. He gains back USD 30,000 while USD 10,000 is given to charity.
Corporate:
Corporate tax is 35% on revenue more than USD 390,000.
A Corp. ( a tech company) earns a net profit of USD 8,000,000 and thus is taxed USD 2,800,000. Reduce the tax rate by 5% on signing up for this system.
The tax returns for the company will be USD 300,000 while USD 100,000 goes to charity.
These figures are just an illustration. But think about how much this would increase the funds the available to charities across the world to provide a better chance at survival. If 10 individuals and companies earned the same amount and were under the program not only will they get back the money they worked for but charities would receive USD 1,100,000 from such an initiative.
The government on the other hand will loose about USD 4,400,000. This amount is but a drop in the amount of money that the government earns from taxes. Bear in mind that this applies only to patent holders. This model can be expanded to make the price of innovative products cheaper for the consumer at the same time which in turn feeds the drive for innovation and possibly improve the way the current system of business works.
The very definition of patents holds true in every sense. What doesn't however is the concept of patents giving an edge to a company over an other in a business sense rather than it being useful to everyone in general. The current model of business requires patents to generate revenue in order to survive in this competitive environment. That in most cases negates the very concept of useful, which happens by putting a hefty price tag on access to such innovation by the consumer.
A simple strategy can use this current model to benefit those who don't have the basic necessities for survival. It requires the cooperation of governments, companies and all platforms (Universities, R&D Companies etc.) that develop new technologies.
When a patent application is being made the government should provide companies/people who patent these new technologies with a tax cut. This only applies when the person/company uses a percentage of the royalties received to fund charitable organisations around the world. The outcome would benefit the company or person who patented the technology. The person receives money for their efforts in research and development while a company stands to make profits from endeavours. The tax cut provides motivation to businesses/people who would otherwise pay the government hefty taxes depending on the amount received as royalties. The price of the patent may come down depending on the percentage of tax cuts there by possibly reducing the price of the end product for the consumer.
Here is an example of how the system would work:
Personal:
The current tax paid by a person earning more than USD 390,000 is 35% .
If this person earns USD 800,000 then he/she effectively pays USD 280,000 as tax.
Now if this person where to register the patent under the system mentioned above and the tax rate was cut by 5% he would only play USD 240,000. The remaining 40,000 is broken up as 25% to charity and 75% as tax returns. He gains back USD 30,000 while USD 10,000 is given to charity.
Corporate:
Corporate tax is 35% on revenue more than USD 390,000.
A Corp. ( a tech company) earns a net profit of USD 8,000,000 and thus is taxed USD 2,800,000. Reduce the tax rate by 5% on signing up for this system.
The tax returns for the company will be USD 300,000 while USD 100,000 goes to charity.
These figures are just an illustration. But think about how much this would increase the funds the available to charities across the world to provide a better chance at survival. If 10 individuals and companies earned the same amount and were under the program not only will they get back the money they worked for but charities would receive USD 1,100,000 from such an initiative.
The government on the other hand will loose about USD 4,400,000. This amount is but a drop in the amount of money that the government earns from taxes. Bear in mind that this applies only to patent holders. This model can be expanded to make the price of innovative products cheaper for the consumer at the same time which in turn feeds the drive for innovation and possibly improve the way the current system of business works.
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