Let’s Compete on Innovation Rather Than Patents | Hacker News Reader

Let’s Compete on Innovation Rather Than Patents

techcrunch.com

52 pointsDanielRibeiro12 comments

Our plan to destroy chinese industry is 50% complete, now if only we can get them to adopt Powerpoint, 6sigma and management consultancy their competitiveness will be destroyed.

Actually that was my reaction to the article. I don't know if he's right in his depiction of what China is doing, but if he is, it sounds like they are making all the mistakes the US is, with allowing too many patents - but much more so. So they'll end up screwing themselves.

My take on patents...

http://daniellefong.com/2010/02/11/how-law-shapes-the-busine...

I'm only about half way through, but I'm absolutely loving it. Stashed to Instapaper for later.

I was under the impression that the Chinese government was moving to encourage/enforce Royalty Free standards nationally, with the threat of simply losing your patent if you try to ambush a standard.

On second thought this probably still would work, with Chinese companies still able to collect standards taxes on things like LTE elsewhere in the world until other governments catch on that China is now playing their game (since China was on the receiving end of this for things like DVD players where patent royalties have been up to a third of the consumer sales price in 2007, possibly more now. Source: http://www.ppionline.org/ppi_ci.cfm?knlgAreaID=108&subse...)

I wonder how much impact there will be to the whole Apple web now being strongly supportive of royalty bearing standards?

TL;DR:

[Getting China to adopt a patent system in harmony with Western systems will lead to A LOT of frivolousness as the system already has bad incentives / outcomes.

Also, patents should be removed for rapidly changing industries (i.e. software), but should be retained for long term plays (bio-tech, industrial processes, etc.)]

I'll completely agree that China shouldn't follow our lead, and that we should remove software patents. However, I'd go further and say that we probably would have faster moving bio-tech, etc. industries if we forced more competition by NOT GRANTING them government monopolies to commercialize a technology (i.e. patent).

Your second and third paragraphs appear to be in conflict re bio-tech unless "faster moving" doesn't trump any negative side effects of removing patents. Can you elaborate?

I can see the argument for patents in areas like biotech where there's a huge up front cost in development and testing. But if the cost is really all in testing, then I think patents should be removed.

Additionally, I think patents should be much shorter since I believe returns/earnings on monopoly power today can be much greater than it was back when the patent duration was established.

I think bio-tech is VERY fat right now. There was a 2005 study of new drugs submitted for patent - I believe it was something like: 7 out of 80 were curing new diseases or improved ways of treating current one. The others being "me-too" drugs trying to get around patents - this means that the majority of research is actually going towards getting around others' patents - what a waste of resources!

Oh yea - who made those 7 drugs? All publicly funded (NSF/NIH) through universities. So who's incentives are these patents helping?

I think we should selectively subsidize the FDA approval process so we can commercialize drugs for real diseases. I'm fine with companies submitting vanity drugs (Latisse for eyelashes or something), but they have to pay full price.

I wrote this opinion piece for VentureBeat a while back, and I stand by it. In fast moving industries like software, some innovation deserves to be protected in some way, but nowhere close to the 20 years that the current patent system allows.

http://venturebeat.com/2010/03/04/in-favor-of-software-paten...

Well, if you hold a patent that does not mean you will build, enhance or use your patented stuff but it only prevents others from using it! I am completely against it.

ok, you first

US and Britain to China: "your censorship of the internet is evil!"

Then when copyright gets involved...

Britain passes https://www.eff.org/deeplinks/2010/04/u-k-passes-internet-di...

http://www.zeropaid.com/news/91378/feds-seize-domain-names-o...

The same western nations that are against censorship of the internet in China, seem to even drop due process as soon as copyright comes up. I am not sure this situation is very stable -- something has to change.

Similarly with patents. I'm glad the media is waking up when China gets involved :)

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