What Is a Patent Cliff?

Patent protection is necessary for a functioning market economy. Businesses need to have assurance that they will be able to reap benefits from successful invention and innovation and the investments they require.

However, patents eventually expire. They last for 20 years in the U.S. from the date the patent is filed. When that time period ends, businesses face something known as a patent cliff.

Loading paragraph...

Pills lying on dollar bills. — Image source: Getty Images.

Loading image...

Loading paragraph...

Loading pitch...

Loading paragraph...

Related investing topics

Loading paragraph...

Investing in Genomics Stocks

Learn how to invest in the growing industry of genomics and get a list of the field's most promising companies.

Best Medical Device Stocks to Buy for 2025

The medical device market is expected to grow to almost $800 billion by 2030. Here's a list of the year's best opportunities.

Investing in Telemedicine and Telehealth Stocks

Healthcare is changing, and remote medicine is just one example. Check out these companies.

Investing in the Best Healthcare Stocks

Healthcare is a universal need. Companies in this broad-based sector can produce healthy returns.

Loading hub_pages...

Loading paragraph...

Loading pitch...

About the Author

Jeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011. Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.

TMFHobo

@TMFBowman

Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie. The Motley Fool has a disclosure policy.