Further along these lines, The ethical problems brought up by IP rights are most pertinent when it is socially valuable goods like life-saving medicines are given IP protection. While the application of IP rights can allow companies to charge higher than the marginal cost of production in order to recoup the costs of research and development, the price may exclude from the market anyone who cannot afford the cost of the product, in this case a life-saving drug. "An IPR driven regime is therefore not a regime that is conductive to the investment of R&D of products that are socially valuable to predominately poor populations".:1108–9 COUNT 4
QSN1 For what type of goods are IP's ethical problems most pertinent? ANS1 socially valuable QSN2 What is an example of socially valuable goods? ANS2 life-saving medicines QSN3 What cost does IP rights allow companies to charge higher than? ANS3 the marginal cost of production QSN4 Who might a higher price exclude from the market? ANS4 anyone who cannot afford the cost of the product