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December 4, 2004
Software Patents = = WMD
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Typically, it's copyright infringers who get compared to/equated with terrorists. Here, Ben Adida of Creative Commons flips the script:
[Where] copyright is concerned, techies quickly shift the conversation to patents, a fairly important topic to the W3C and the web community at large. It's during one of these discussions that it occurred to me that software patents behave very much like weapons of mass destruction.
Software patents are used mostly for defensive purposes, as a kind of threat of potential action: software companies stockpile patents as quickly as they can but rarely make use of them. If a party chooses to make use of a patent against another party, the effect is usually devastating, especially if the other party chooses to countersue using its patent portfolio. The fines resulting from a patent infringement lawsuit are enormous (Eolas patent: $521 Million).
What ends up happening is that large software companies have an understood agreement that they will not sue each other for patent infringement, because the effect of suing and countersuing would be too much for either party to deal with. A sort of Mutually Assured Destruction by Patent Litigation, if you will. Of course, the small companies which have a much smaller patent arsenal cannot compete and are forced to negotiate to stay alive.
[...]
Certainly, it is too extreme to say that patent firms are the equivalent of Intellectual Property terrorists. But it's important to note how the precarious balance of defensive patent portfolios is about to be shattered by Patent-Only firms, in very much the same way that the precarious balance of MAD during the Cold War was shattered on 9/11.
There are legitimate uses to patents, but we're about to enter an era where they will do far more harm than good. And even the large companies will realize that we're in need of serious patent reform.
Bonus:
Professor Lenz strikes back at the "enemies of freedom" in a post on the kind of patents that kill -- not literally, but too close to be tolerated.
Comments (3)
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1. Brad Hutchings on December 4, 2004 5:05 PM writes...
Nice story. But I wonder how well it jibes with reality. Many small software companies and startups use software patents in order to protect themselves from big player competition if their market heats up.
It would be very interesting to see an analysis of company size (people and revenue) and purpose as percentage of software patents issued. With such an analysis in hand, we can then see whether software patents are WMD for patent portfolio fights, multi-million dollar shakedown tools, or (perhaps) still server the purpose of protecting inventors in developing markets. Anyone know of such a study?
Permalink to Comment2. Alexander Wehr on December 4, 2004 5:51 PM writes...
the rise of "patent only" companies should be a clear signal to congress that our IP law has gone awry and must be rebalanced.
They make no product, they are honestly nothing but parasites, latching onto other companies and sucking them dry.
The same can be said for companies who claim blanket patents over such ubiquitous technologies as "double-click".
Out of control would be an understatement. It sends a very clear message that anyone who attempts to start an IT based or software company that, no matter what financial safeguards the government offers to encourage entrepreneurs, they could end up in debt more than the net worth of their largest competitors.
Is that honestly a way to a healthier, more vibrant, and more innovative economy?
Permalink to Comment3. aa on December 4, 2004 9:52 PM writes...
Think that p2pnet story is good? Look at this lovely Ashcroft quote, directly from his homepage:
http://www.cybercrime.gov/chips101904.htm
"Intellectual property theft is a clear danger to our economy and the health, safety, and security of the American people," said Attorney General Ashcroft.
Indeed. Copyright infringers are not only destroying the American economy, but also the security, health, and safety.
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