Why does the government protect some monopolies under patent laws? Give examples on both sides

Since Monopoly firm is considered as a single seller of that good in the market. No other firm is entitled to sell the same. There are many barriers to entry into a monopoly. This is the reason why firms can?t come in the market which is regulated by the monopoly firm. The government grants patent rights to the firms which would enable the monopoly firm the exclusive control for producing that good and selling out in the market. These are given as by the way of licenses so if any firm tries to produce that product then they are entitled to the punishable offenses.

As it is important by the view of government and a monopoly firm. Due to the patent, the monopoly firm only produces that which enables them to reach the stage where they bring the production of goods in the context of economies of scale. It would make a beneficial situation for a firm to earn a huge profit at the lowest average cost. Whereas Government grants this patent due to the incentive provided to the firm. As it motivates the firm to make research and development of producing that good. Without patents, generally, firms are reluctant to make their investments on these research-based work, due to the free-riding problem. As more firms take advantage of their research and snatch the incentive of a monopoly firm.

For example, a network solution providing company who is the sole provider of software spent huge funds on the research and development are given patent rights by the government which grants them the time frame due to which they would earn only profits and finds out a way to reduce the cost as much as possible. It also provides an incentive to the monopoly firm.