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patent (03)<br />An official document conferring exclusive privileges on an invention for a period of years. Patents create a formidable technological barrier to entry, establishing and maintaining MONOPOLY POWER. Si nce patents allow monopoly profits to accrue to their inventors, they are a major private incentive to research and development. Nonpatent-holders can onl y use patented technical knowledge by licence. Although the patent system may encourage inventors, it has been criticized on the grounds that all scientific knowledge should be a free good and that the considerable legal costs of registering and protecting a patent exclude the poor inventor from using the system.<br /><em>See also:</em> invention; product cycle

<strong>Emergency action</strong> – A special action taken by the guarantor or by the U.S. Department of Education to temporarily suspend a school, lender, or servicer from participation in the federal student aid programs. An emergency action may be followed by the initiation of formal Limitation, Suspension, and Termination procedures.
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<strong>NATTS</strong> – National Association of Trade and Technical Schools.

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