Patents arguably grant inventors monopolies for a short period of time

Trademarks protect the branding of a service or product, while patents protect the product or service itself

Trademark protections cover the branding of a service or product, like its logo, its smell, or even its shape. However, patent protections give inventors exclusive control over a new product—as long as those inventors disclose how the product works and how they made it.

Breaking down the main classes of intellectual property: trademark vs. copyright vs. patent

Trademarks, copyrights, and patents are all intellectual property classifications that give exclusive ownership of ideas and concepts to individuals or businesses. Patents usually refer to innovative products or processes, copyrights are centered around the right to reproduce content, and trademarks usually involve branding elements, like names, logos, and distinct product elements.

Trademarks are just one type of intellectual property

Intellectual property refers to any intangible "creation of the mind," which includes ideas, creative works, and even trade secrets. Trademarks, copyright, and patents are all protected by intellectual property laws—but each protection is separate and distinct.

An overview of monopolies, when one company controls an entire market

In the business world, a monopoly exists when one company controls the entire market. Regulators take issue with monopolies because they have been found to limit consumer choices, raise prices, and hurt competition.

Coca-Cola was created during a patent medicine boom

A "patent medicine" is a proprietary medicine that is ostensibly created and marketed under a patent, and, crucially, is available without prescription.

Utility companies are often considered 'natural' monopolies, which occur in industries where the upfront costs of entering the market are high, making competition unrealistic.

A 'bilateral monopoly' occurs when there's one supplier and one buyer in a market

Bilateral monopolies are often used to conceptualize labor markets in small towns. Using this concept, large employers have a monopoly over the labor market, while workers have a monopsony as the only available laborers.

Monopolies are considered the most extreme form of imperfect competition

True monopolistic companies face no competition, meaning there aren't any near substitutes for the goods or services the company provides. Often, no competition exists because the monopoly is either approved by the government or the barrier to entry is costly.

Trademarks are a form of consumer protection

Trademarks help brands distinguish their products from competitors, but they also give consumers clarity around the product they are buying and where it comes from. Distinguishable names help prevent consumer confusion and maintain a consumer's ability to choose their preferred product and brand.

Monopoly was based on the satirical Landlord's Game, which criticized the abilities Monopoly rewarded.

Market concentration and high markups don't always signal a monopoly

When regulators and economists evaluate whether a company constitutes an illegal monopoly, they often consider its overall market share or its relatively high price markups. This piece argues that the Olley-Pakes decomposition is a better measure, identifying whether customers within a market are switching to more productive companies.

Read the Federal Trade Commission's legal definition of a monopoly

The Federal Trade Commission and the US Department of Justice (DOJ) Antitrust Division are the regulatory agencies responsible for overseeing antitrust laws. Before deeming any company a monopoly or acknowledging monopolistic power in a market, the FTC conducts thorough research into market competition, price, and even other competitors' business practices.

A rundown of some of the wildest new tech inventions around the world

The US Patent Office approves roughly 300,000 new patents every year. Among these are some fascinating tech inventions, from high-profile robots and automated bike garages to kaleidoscopic shelves and laser-projected directions for scooters. Check...

Legendary venture capitalist Peter Thiel once wrote that 'competition is for losers'

With Peter Thiel's "Monopoly Theory," the Founders Fund partner argued that investing in companies that create new categories, rather than those that compete with other businesses in existing ones, is a best practice in venture capital.

Robber barons, the monopolistic business people of the 19th century, explained

“Robber baron” was a term used to describe 19th-century businesspeople who engaged in monopolistic business practices and didn’t face much business regulation, resulting in significant wealth.

How the Supreme Court established biotechnology patent law with an oil-eating microbe

While working at General Electric, microbiologist Ananda Chakrabarty engineered a strain of Pseudomonas that could break down multiple types of hydrocarbons and filed a patent on the bioremediation organism. Despite challenges over whether living things could be patented, the 5-4 decision held that genetically modified organisms could be patented because they were human-made inventions.

Explore a list of well-known monopolies

Many American monopolies popped up during the rapid industrial growth of the Gilded Age. Industries like steel, tobacco, railroads, and telecommunication have all been monopolized at some point in history.

Watch how American monopolies used vertical and horizontal integration strategies to command markets

Vertical integration occurs when a company controls the entire manufacturing or development process, whereas horizontal integration involves expanding a company's market share. Both strategies have been used by US monopolies to establish dominance in markets.

Network effects are the economic term for a good or service's popularity

When goods or services become especially popular, firms that provide that good or service become dominant in the market—which can ultimately lead to a monopoly.

Listen to the pros and cons of owning a trademark as a small business owner

For many small business owners, it can be hard to decide when the time is right to file a trademark. This trademark lawyer says the decision often comes down to a product's branding, the size of the business, and how established the company is.

The international trademark framework is called the Madrid Protocol

Trademarks vary from country to country, but an agreement called the Madrid Protocol allows trademark protections across more than 100 participating countries. While the Madrid Protocol expands trademark access, it doesn't necessarily grant blanket protections across the participating countries, meaning each country is still in charge of its own trademark enforcement.

Some experts and investors think short selling—a strategy in which investors bet that a stock will drop in value—helps keep the market healthy.

A 'monopsony' is a market with a single buyer—rather than a single supplier

A monopsony is the demand-side equivalent of a monopoly, where a single buyer commands a market. In a monopsony, the buyer has an outsized influence over the price of a product or service because they control most or all of the sales in that market.

Read about why bans on short selling are a controversial policy

Generally, short selling is legal, but regulations often restrict short positions when a stock has experienced a sharp price decline (more than 10% in one day). However, negative feedback loops in times of financial crisis have given short selling a bad reputation. The government has temporarily banned short selling during previous market downturns—like The Great Recession of 2008 and the early months of the COVID-19 pandemic—but experts argue whether those bans actually improved market stability or just distorted prices.

Modern antitrust law was created to combat the Standard Oil Trust

John D. Rockefeller's Standard Oil Trust enabled him to evade laws against a single corporation buying stock in another. His centralized board of directors held stock in many different oil companies under his control, allowing Rockefeller to eventually monopolize the oil refining industry. Efforts to regulate and prevent the Standard Oil Trust's monopoly became known as "antitrust" laws.

Learn what constitutes trademark infringement

Infringement is a trademark violation that threatens the owner's exclusive right to use a trademark. The general standard for proving any trademark infringement is the likelihood of causing confusion to a normal consumer.

Studies link H-1B workers to patents, innovation, and productivity growth in the US

Research shows that H-1B visa holders boost innovation: Firms that employ many H-1Bs file more patents. Economists estimate that foreign STEM workers helped explain 30% to 50% of nationwide productivity growth from 1990 to 2010, while immigrant inventors disproportionately generated high-value patents.

Tariffs are taxes levied on goods imported from abroad.

'Dilution' is any use of a trademark that weakens its distinctiveness

Unlike trademark infringement that hinges on the likelihood of confusing customers, trademark dilution is an illegal practice that threatens the distinctiveness of a trademark. In the US, famous brands like Nike and Google have a right to protection from dilution.

The Wrights’ patent battles delayed the development of aviation technology in the US

By the time World War I began in 1914, the US was lagging behind European powers in aviation. This stemmed primarily from wars over patents between the Wrights and competitor Glenn Curtiss. The pair argued their 1906 patent covered all mechanisms enabling lateral flight.

Scents, when they are truly unique and identifiable to a particular brand, can be trademarked.

Nike made retailers pay for Air Jordans upfront to guarantee stock

Instead of paying for the inventory sold, Knight locked retailers into iron-clad agreements, where the companies would pay upfront for Nike inventory (but at a 7% discount). Knight did this to leverage debt, allowing retailers a better chance at getting the wildly popular Air Jordans.

Special-purpose acquisition companies let companies skirt the IPO process

A video explains how private companies have taken advantage of this loophole, why investing in these companies isn’t always a good idea, and how blank-check companies (as they’re commonly called) work.

Read about the history of the Sherman Antitrust Act, the first law to ban monopolistic behavior

In its later years, Standard Oil formed a business trust that reflected the company's exponential growth. Politicians wanted to prevent such trusts and used the Sherman Antitrust Act to force Standard Oil to break up.

How the National Science Foundation supports the US economy

The NSF has filled funding gaps in the research and development of products developed in the private sector, particularly when the research requires more than three years to complete. These investments, including in startups such as Qualcomm and Symantec, have supported job creation, generated economic returns, and helped build the technologies many industries rely upon, such as the internet.

It can take 10 to 15 years and more than $1B to develop a new antibiotic.

Why don't we just develop new antibiotics? In part, it's a complex scientific challenge, but market incentives also play a significant role. It can be time consuming, expensive, and most notably, we should use as little as possible to avoid driving further antibiotic resistance.

Tesla's lack of business savvy and inability to commercialize led to his obscurity

For decades, despite pioneering technologies for large-scale electrical systems and telecommunications, Nikola Tesla had been forgotten to history. Rather than monetizing his work and becoming more well known, his inventor-first mentality saw him sell off lucrative patents to fund new experiments in the short term.

The median trademark of public companies in the US is worth $22.5M

There are multiple approaches to evaluating the value of a trademark. Some strategies include analyzing the value of royalty payments a trademark produces and the cost of recreating the trademark or brand.

How do tariffs work?

This brief animated video from Time walks through a simple example of a tariff on a single good, illustrating how this would affect the market for the good—both domestically and abroad—and who would eventually bear the cost of the tariff.

Learn what different trademark symbols mean

In the US, brands can technically use a trademark without actually filing a trademark with the United States Patent and Trademark Office—which is where the ™ symbol comes from. However, brands that have officially filed trademarks can use the ® symbol in their branding.

As of 2022, about 40% of scientific research aimed at generating new knowledge has been funded by the federal government—a percentage that has decreased from a high of 72% in 1967.

Policymakers make complex trade-offs when considering tariffs—while they can generate government revenue and encourage the consumption of locally produced goods, they can also lead to higher consumer prices and may negatively impact economic growth.

Early state constitutions often limited governors to short terms

In the years after independence, many states drafted constitutions to limit executive power. Most governors served only one- or two-year terms, sometimes with breaks before reelection.

Why do long-term capital gains get taxed at preferential rates?

The 1920s defined capital gains as “unearned” taxable income—as opposed to “earned” income from jobs—and set into practice preferential tax rates for long-term capital gains that are hotly debated to this day. This historical review explores how voices in favor of preferential rates were arguing on behalf of greater market liquidity and incentive for investment activity. Learn more about the real history of capital gains tax rates here.

In 2020, the US DOJ sued Google for unlawful monopolization of the search engine market

The US Department of Justice and numerous states accused Google of making exclusionary agreements with Android phone manufacturers to make its search engine the default on those devices, preventing competitors from gaining market share.

Tesla open-sourced all its patents to speed up industry adoption of electric vehicles

The company employed a disruptive strategy to transform the transportation market, but early struggles, including leadership shifts and near bankruptcy in 2008, threatened its efforts to bring electric vehicles to the mainstream.

Title loans are a type of short-term loan with high interest rates

Title loans allow borrowers to use their vehicle's title as collateral for a short-term loan. Similar to payday loans, title loans often have high interest rates and are mostly structured to last around 30 days. If title loans aren't repaid, the lender can take possession of the borrower's vehicle.

Private credit is a nonbank loan made directly to a business

Similar to private equity, private credit is part of the private markets world. Both strategies offer illiquid, privately negotiated investments for privately held companies. Unlike private equity investors, however, private credit investors typically do not take ownership stakes in the companies they invest in.

If the US government paid off its debt, it could disrupt the entire bond market, as Treasury bonds are among the most common bonds for investors and the majority of the national debt is in bonds.

An oligopoly is a market structure where a few large businesses dominate the entire market

When a few large companies dominate a market, changes in pricing for goods and services affect the entire market. Airlines are a common example of an oligopoly. Because the barrier to entry in the aviation industry is high, only a few airline companies offer the majority of the industry's services. While there is some competition, pricing across the board is largely intertwined and based on other companies' prices.