Grace Period Literature Review

Abstract

Grace is the disclosure of an innovation without loss of the right to patent. It refers to a period of time, before a patent application is filed, in which an invention may be disclosed without losing its novelty. Grace is applied disparately across countries. It is a prominent characteristic of the American, Japanese, and Australian patent regimes, while for all practical purposes it is absent from Europe. Notably, grace differs to such an extent that employing it in one jurisdiction may preclude successful patenting in another. Despite its importance, it is not prominent within the academic literature. While much effort has been expended on patents and innovation generally, there is a paucity of academic work focusing specifically on grace periods. This paper endeavours to summarise the main contributions, while also drawing links to the related streams of economic research.