Innovation is fundamental to economic growth. As an effective lure for private investment in research and development, protection of intellectual property (IP) plays a significant role-perhaps a vital one-in promoting innovation. Neglect or degradation of IP protection therefore presents the risk of economic stagnation. In the 1960s and 70s, U.S. antitrust-law enforcement plunged into a restrictive and formalistic phase, creating serious legal jeopardy for a variety of common competitive practices. Within this broader trend, IP licensing and other conduct relating to the acquisition and use of IP were aggressively attacked in government and private antitrust litigation. As a result of this and other kindred policies of the time, U.S. productivity growth slumped and doubts emerged about long-run American economic vitality.
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