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Palworld confirms ‘disappointing’ game changes forced by Pokémon lawsuit
(www.videogameschronicle.com)
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You're right that that's an aspect I forgot about, however If the patent system worked as you envision it then those students would own the parent which they would then lease to those companies. The actual situation is quite legally messy because it's usually the universities which own the IP produced, (which is then leased out via partnerships, grants etc ) and when those individuals lease themselves with the promise of producing more valuable IP they have to take cautions to not infringe on their previous work.
Not really, using Covid as an example this paper details the pre and post-epidemic funding sources that went into the discovery, testing and production of the COVID vaccine. Do you have any other examples you'd like to use to demonstrate how it's "extreme"?
Yes and no, but it is well publicized and documented which is what I was trying to communicate with that specific one as an example.