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This lecture covers the history and principles of patents, including the Senate of Venice's 1474 patent system, the concept of public and private goods in innovation, the tragedy of the commons, and the modern patent system. It delves into the elements of a patent, the importance of inventorship, the Freeny patent case, unintended consequences of patents, and the costs and processes of IP protection. The lecture also discusses the Patent Cooperation Treaty, the types of formal IP mechanisms, what can be patented at the EPO, and the significance of patents in protecting intellectual property.