Patents are out of control, and they’re hurting innovation (2017)
learnliberty.org
learnliberty.org
It doesn't make any sense. There's no way reading a patent helps anyone understand anything, because the whole thing is done by lawyers, not engineers. Even reading the patent I applied for does not explain to me, the person who came up with the idea, of how it works. (Long story, not willing to get into it.)
The whole idea needs some kind of evidence that it works. We can all imagine that maybe if there weren't patents, certain things wouldn't get invented. But that experiment happens in people's heads, and the outcome depends on how they are invested. And it's not easy to come up with reasonable evidence, there would be a lot of confounding issues, such as whether patents themselves stop certain beneficial things from happening.
From what I can see a huge amount of innovation is called off due to patent uncertainty. I have a friend who is an inventor in the medical field, and quite a lot of the ideas he comes up with are junked because he's found some patent in a database that sounds too similar. At the same time he has to pay a tax to the lawyers on a bunch of low probability inventions.
It should just be a free-for-all. You see someone with a better mousetrap, you make a better mousetrap. You compete on actually bringing it to market, which is not the same thing as whatever you think the innovation is. Surely that creates the most value for society, or at least should be the default until the quite high hurdle of evidence for patents is cleared.
Won't that mean nobody thinks about better mousetraps? No, people will just think of better mousetrap production-and-marketing ideas compatible with this legal environment instead of what we have now.
Well put!
As I understand it, this is how IP is valued in China - not the idea, but the execution.
Yes, ultimately it means better mousetraps for the consumer. Maybe even cheaper, better mousetraps. But it sucks for the guy who actually designed and engineered the better, cheaper mousetrap if he doesn't have the knowledge or capital required to actually produce it better/cheaper.
So, it seems like neither the idea nor the execution alone carries the full value. There must be some happy medium.
1, How effective are patents at protecting an under-funded inventor? (As I’ve been told by my lawyer) They cost tens of thousands to file and much more to enforce. It seems way more likely that a rich company will railroad you and eat the legal costs later.
2, As execution does matter, don’t patents leave the potential for a concept to be poorly executed and its value wasted during the period it might matter most? The lifetime of a patent is huge in the span of tech.
Given those questions and the other negatives, including patent trolls and the really broad assignment of patents, I really have to wonder what benefit we’re getting here.
My own impression, "less than they used to be". I read patents from time to time, and there's a huge difference between, say, one of Tesla's patents for which he clearly wrote the application himself and a present-day patent, where the writing was clearly done by a professional unrelated to the technical field.
That said, I wonder how out of reach the self-filing route really is. My own patent cost me 2000 Canadian in consultant's fees, essentially to have them proofread my draft and make suggestions. I still had to have a bit of back-and-forth with the examiner, but none of it felt out of reach even today.
To my way of thinking, the whole idea of a patent hearkens back to a time when kings granted monopolies and the people getting them took care of the rest. It doesn't make much sense for an inventor today, who would ideally want everyone competing to execute on their idea. There are probably a lot of better alternatives to the patenting system that properly harness the tendency of data to be copied. Maybe some form of a value-added tax for getting into new business segments that automatically get remitted to the inventor? To no one's surprise, coming up with a better idea than the patent system isn't the hard part!
Also, how effective is not having a patent at protecting an under-funded inventor?
There are ample cases of smaller inventors getting decent payouts from bigger companies stealing the invention, often after having been shown it be the small guy trying to find a way to bring to market.
And, if the patent is really valuable, small guys can often find bigger guys to fund patent suits for a cut of the return, just like any business.
Not having a patent is not a gain for a small time inventor. When I have done startup style things, I was constantly asked if I have patents. It enables investors to have more leverage to protect the startup from outright copying from bigger, better funded companies.
Current situation is free for nobody but China.
At the end of the year, government decides which inventions were most valuable to society. Then these inventions are rewarded from an innovation budget.
(Related question: why are patents treated so differently from fundamental research?)
All patent applications are published (not necessarily granted). Prior to publishing is review by a patent examiner. Someone who usually has to be knowledgeable of the related subject matter. Many examiners have advanced degrees.
Laws/policies are supposed to dictate which inventions the government is supposed to grant.
It’s supposed to be financially rewarding to publish a patent, for both personal and national commerce economics. Which we assume sparks innovation in the private sector and better science/technologies/anything for all.
It sounds like you want to flip the script. Some commercially funded capability to review the endless stream of patents - in which would need to be particularly formal and that can be regulated, and for the government to redefine the incentives.
Btw Governments do offer grant opportunities for various innovative/research areas before they are proven.
The patent system offers a temporary monopoly on the tech to the patent holder. This is not the case here.
So what we should have is a system where some inventor sells their idea to society (a government institution), which then determines what price they are willing to pay for that invention.
So, we should have no more monopolies on a technology for certain periods (what a stupid, stupid idea). Just pay for the invention if you want it to be opened up.
Everything else in our society works with dollars, so why not this thing?
You could determine the value provided by auctioning off these patents through a Vickrey Auction, an auction that incentivizes people to always bid their true value. I'm fairly sure you could properly set this up such that very few people lost access, the inventor got more money than they could have made, and no one has to ever deal with the bureaucracy that the current system brings.
A lot of "low-cost copying" is actually just tuning an existing apparatus to what the market wants. Suppose you discover that people want to buy triangle-shaped plates. Either there's something special about your particular take on it that naturally protects your business, or existing makers of round plates can retool and make triangles and get value out to the customers sooner and in more volume than you. Why not let them have that reward?
Also keep in mind that a lot of these low cost manufacturers are actually testing the market themselves with new variants, so it's not like they're not doing anything innovative.
There is no alternative system for remuneration, we use intellectual property rights to ensure that people are rewarded for the results of their creative work.
Without that right of ownership, the balance of power between capital and labor becomes even more tilted toward capital.
> We can all imagine that maybe if there weren't patents, certain things wouldn't get invented. But that experiment happens in people's heads
Yeah. These hypotheticals are always brought up whenever someone criticizes patents but the fact is there's actual historical evidence that lack of patents leads to more innovation, more competition, more industry, more prosperity for all nations and especially for developing countries.
https://news.ycombinator.com/item?id=28330810
All intellectual property is nothing but monopolists trying to maintain their monopoly position. They struck gold once and want to keep extracting value out of that mine forever.
Eventually they evolved into what we now know as "intellectual property law" in the 18th century and that system was all about disclosure. It had nothing to do with "encouraging innovation". What's most interesting is that even back then patents were being abused and hindering innovation. See the info in that Wikipedia article about Boulton & Watt preventing improvements to the steam engine.
The simple truth is that patents are not required for innovation and they were never intended to protect individual inventors; they were designed to protect business interests. To allow established players to keep the up-and-comings out of their markets.
> all about disclosure
was post-hoc justified using disclosure.
> It had nothing to do with "encouraging innovation"
Technically disclosure is supposed to encourage innovation by allowing people to see what's up and then either choose to iterate on it (and wait till expiry to deploy the iteration) or "find a better way", either inspired by disclosed patent, or knowing that you have to skirt the bounds of the disclosed patent.
Open question about whether that actually works (I personally think the answer is no).
Except that if you acknowledge the existence of the patent (for example in an internal paper trail), you will then be found liable for willful infringement and will face triple damages, even if you honestly believe you found a way to avoid using the method covered by the patent.
At least that's the legal advice I've seen coming from the USA:
- never talk to cops
- never read a patent
- never read proprietary source code
- never talk to cops
- never read a patent
- never read proprietary source code
I need a nice printable version of this to post on my wall.The US Constitution disagrees:
Article I, Section 8, Clause 8 [The Congress shall have power] “To promote the progress of science and useful arts, by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries.”The economist Fritz Machlup did a study in the 1950s on the economics of the patent system in the US and in his conclusion came to: "If we did not have a patent system, it would be irresponsible, on the basis of our present knowledge of its economic consequences, to recommend instituting one."
The benefits from a patent-type system have to be compared to the alternative, which is where people innovate solely to stay ahead of market competitors and protect trade secrets. In that scenario, one might argue that there's a natural measure of innovation, the ease and speed with which a competitor can copy something or implement a competing product.
I'm not inherently opposed to patents but I do think their implementation today is extremely dysfunctional.
I think the world has outgrown our current approach to IP, but as long as it continues to suit the needs of those who already hold resources, nothing will change.
In my opinion we should either do away with software patents, or make sure they are interpreted in a sufficiently narrow way, and are clearly "not obvious". Further, "business processes" didn't used to be patentable, and that's the way it should be.
I wouldn't have minded staying at the USPTO for longer if I was given more time. The lack of time was the main reason I quit.
My understanding is that the time issue would be more easily solved by better funding the USPTO. Right now the USPTO is funded only by fees they charge, and the Department of Commerce diverts some of that funding outside of the USPTO. Fund the USPTO via taxation in addition to allowing the USPTO to keep the funds it brings in and I think we'll start to see improvements in the time given to examiners.
(There are other issues, like the fact that examiners barely get any more time for having more claims. Typical patent applications are 20 claims, but I only got an hour more for examining a particularly annoying application with over 40 claims. That's over twice the work with barely any more time! By the way, the USPTO charges the applicant extra for these extra claims.)
There are other patent quality problems that I think come down to the incentives of attorneys. Too many patents are written in vague legalese that no "person having ordinary skill in the art" would understand. As an examiner I was told that I could not do 112(a) rejections for those sorts of things (this is the sort of rejection it would fall under) and that seems to be typical USPTO policy.
It’s generous to say that it’s just a problem for someone with “ordinary skill in the art”. I fully expect that patents written in confusing legalese are more likely to get granted, because this makes it hard for examiners, too.
I think that if a patent isn’t understandable to an ordinary practitioner, it should be deemed invalid. Reading through software patents, 90% of the effort is understanding what the hell it says. (The other 10% is trying not to scream about the fact this obvious garbage was granted.)
In general, for anyone with a general interest in the anti-IP position, the following resources are good:
* C4SIF - Center for the study of innovative freedom - c4sif.org
* The Case Against Intellectual Monopoly by Michele Boldrin and David K. Levine - http://www.dklevine.com/general/intellectual/against.htm
A long time ago, a former employer sued me for stealing their trade secrets but wouldn't tell me what trade secrets I stole were. After a few rounds of litigation, the employer admitted the "trade secret" was a literally a section of HIPAA. Shortly thereafter, the case was dismissed with prejudice and the former employer paid my legal fees (and then some for the trouble). It seemed clear they knew there was no merit to their accusations, but it was more about a vindictive smear campaign. (also, belated thanks to HN... my plea for help to this forum was met with a referral to an attorney that ended up successfully sorting this issue out for me)
That experience scarred me enough to basically refuse to sign the ambiguous invention assignment agreement from the first paragraph. You don't know how the companies will use these patents, and even if a patent isn't granted you're often still asked to assign any rights to the invention. An overly broad invention assignment form opens the possibility for organizations to come after you with meritless lawsuits claiming you're using the company's property in your future work... which, even if you know you'll eventually prevail, it's still a total disruption to your life.
This whole system is broken.
You know the phrase "best thing since sliced bread", well the sliced bread machine was patented and now we all have sliced bread. That is the way it should work.
The whole thing is a mess.
Granted, in the meantime, we've had some SCOTUS rulings which are more or less anti-software patents, but it's all too common for them to reverse circuit court rulings which are almost always pro patents.
So - invent a new drug (for humans), where safety regulations guarantee that actual approval to sell the drug will cost many, many millions of dollars? Patentable. (Yes, there are other issues with modern drug companies & patents - Not. The. Point.) If somebody comes up with a working, practical fusion reactor? Very patentable - that can't have been cheap to do, and "thousands of experts have been trying for decades" is proof that this inventor really is something special.
Vs. software, abstract ideas, waterbeds, scanning to e-mail, a clever new way to peel potatoes, etc. - sorry, but patents should simply not exist for such stuff. You can only copyright your code, trademark your brand, etc.
If you'd like to get rid of software patents, the lawyers, company management, and professional societies are not going to help. Band together, get a Congressman to introduce a bill, and then start pressuring candidates to support it.
If you write an op-ed about this, your opponents will cite medical and biological patents to defend "patents as an abstract idea." They will muddy the issue. The only way to defeat that is to separate out "software patents as a bad idea" from "worthwhile inventions that deserve patenting." You, yourself, might want to abolish all patents, but that proposal will face a blizzard of opposition.
The court has demanded that patent examiners who make a finding of obviousness cite documentary evidence for each feature in a claim, no matter how mundane or obvious the feature is. But what if the feature is so mundane no one would write about it? The paradoxical result is that the more obvious a feature, the harder it can be to prove obvious.
This is nonsense. Things are "generally known to ones ordinarily skilled in the art" can be ruled obvious and are all the time.
One researcher estimated that, for software-related inventions, about 50 percent of patents are likely invalid, even under the existing permissive standards for validity.
It's more like 90%, and I've read hundreds of them.
And there are certain countries that are not dissuaded by patents, where innovation will not stop. For a while at least.
on the subject of prior work, and just thinking out loud, but I wonder if USPTO could set up some rules whereby the person asking for a patent has to do some sort of search for prior art, in order to get the patent
and if they don't or do it badly/ not to the rules, then a penalty is applied, financial or immediate ban on patients?
The problem with proving something is an exact copy is just the nature of our field - anything can be argued as a copy or innovation.
Most ideas that get patented are reasonable next steps from an existing idea anybody in the profession with half a brain will take.
There is no requirement that one looks for prior art. 37 CFR 1.56 requires that an applicant disclose pertinent prior art that is already known to the applicant or his lawyer and disclose prior art that the applicant becomes aware of during the application process.
Disclosing prior art, and how your patent builds on and is different from it, is part of the patent application process.
> and if they don't or do it badly/ not to the rules, then a penalty is applied
That penalty is the patent is completely invalidated.
As it stands right now it can be literally impossible to find the current owner of a patent. The "inventor" is irrelevant metadata in a patent filing. What matters is who owns it and what happens a lot of the time is some business owned a patent and it folded. Or the patent was secretly sold to some other entity and that sale was never disclosed to anyone (and even if the previous owner can be found they have no obligation to tell you who they sold it to).
So even if you wanted to negotiate a license for an existing patent it's an uphill battle a lot of the time to even figure out who you need to talk to. It's an incredibly impractical system.
It's probably a good thing that the inventors of FDM got compensated in some way, but it's also hard to not come to the conclusion that Stratsys owning all the 3D printing patents basically held back 3D printing for a long time.
I was part of a group working on getting patents. That is right - we weren't necessarily trying to solve anything but literally just brainstorming possible things we could realistically patent. The rest of the process then devolved into, "how this will look and sound to the committee or the board" rather than being about the functionality. I couldn't stand it and politely excused myself from the group.
The whole experience left a very bad taste with me about the patent system in general.
I can't think of how the process should be improved because I can see how a stricter vetting can stifle _real_ creativity but the current process is not good.
Generally strong IP rules tend to favor the less wealthy, weaker IP rules tend to favor those with the most capital. That's why billionaire Mark Cuban is funding things like this article. When people say things like "just out execute in the marketplace" what they are really saying is just pour millions into the project. Not everyone has millions and one of the foundational principals of US society is that a poor person with a good idea should be able to get rich. How rich and what they should do to qualify for the patent is worthy of debate. For example patent holders should have to be a "practicing entity" (aka a real business) working to deliver the innovation to the market.
The patent system should be better not gone.
As a small timer, the patent system is just a way to extract a tax from other people or sell your patent to a big business that’ll use it to bully people like I mentioned.
Plenty of businesses have been founded on out executing giants, and won. Sure they had to maybe carve out a niche or have an edge at first (nothing says you cannot have trade secrets without patents).
No. If you as a startup need to account for a significant amount of money to validate your entire company's activities for patent violations - including basic UI/UX improvements such as "one-click shopping" [1] - the situation becomes ridiculous and oppressive in itself.
Not to mention that a patent holder unwilling to license their patent can keep progress from society, such as in the infamous Qualcomm saga. Or, assuming you want to build an innovative, high-performant set-top box (which is incredibly easy to do so using something like a Raspberry Pi)... you need to deal with buying licenses for a bunch of video standard patents for that.
All of this is utter bullshit that only benefits the very rich and powerful, and stifles competition (and no, "free usage" exemptions don't count because you still have the fear of lawsuits above your head should your product be more successful than expected).
IMHO: As soon as you want anything to become a standard recognized by major international bodies, you should have to give up all the patents. Everything that is required to follow a government-mandated standard (which especially anything involving RF communication is) should be freely available to read and implement for everyone - looking at you, DIN.
https://www.abajournal.com/news/article/patent_lawsuits_drop...
Like everything, it’s only as good as it’s implementation. I think it would be better if a patent was awarded only after a profitable demonstration was built and running maybe with a pre-patent filed beforehand. It’s insane that a guy can sit at his desk and patent things arbitrarily — how is that providing guidance to capital? And I think the patent should withstand ongoing demonstrations of actual implementation.
And also, we need to get rid of arbitrary litigation because that just makes everyone afraid of other peoples patents. It would be easy to get rid of that.
Useful innovations are those which help society. Things that enable "standing on the shoulder of giants". Society values those innovations.
Often, the simple innovations are the best ones - yet, the simple innovations are also the ones most easily copy-able.
But, if something is easily copy-able, then one hesitates making those ideas public - for fear of copying and undercutting by competitors. Studies have shown that typically ~80% of R&D ends up as wasted effort (those 23 forks embarked on to realize #21 was the best).
So how can society encourage innovations to be made public? By providing incentives - such as patents - which are a limited time monopoly in exchange for fully describing the idea. Once the limited time monopoly expires, it is free for all - but in the meantime, others can read and understand the innovation - and either workaround (and provide society ANOTHER idea) or improve upon further or simply spark another idea.
Open societies out-proposer closed societies.
Did I say something incorrect or did I simply illuminate some unspeakable truth that strikes against the narrative what ycombinator editors are trying to convince readers of?
The patent system only benefits (1.) rich corporations that can afford the millions of dollars in lawyer fees to litigate patent claims, (2.) the lawyers that receive said fees.
First, spend a couple of hours analyzing the Patent Claims. Often you'll discover that you most likely do NOT infringe at all - or least highly unlikely.
Other times (albeit after having developed a bit more knowledge one-time), you'll assess with decent probability of the likeliness of being able to invalidate the patent - then the tables turn - use this as a threat against the troll. They greatly fear having their $costly patent potentially wiped out. They too are playing the odds, and even a 10-20% probability of having their patent invalidated can go a long ways to dropping the suit against you.
At the end of the day, engineers are overly afraid of patents. If they spent a little time understanding them, they could greatly reduce this exaggerated fear. It's not an insurmountable hurdle - engineers&scientists have more innate abilities then they give themselves credit for. It's more of a matter that this exaggerated fear has been drilled into them. Lawyers are incentivized to perpetuate these fears.
Simple innovations are also the ones that are most easy to accidentally create yourself. "The most obvious way to do it". In cases like this patents are frequently a hindrance as a company needs to find a less efficient and more complex way to solve a problem because the obvious solutions is being squatted by a patent troll that demands far too much for the small but critical piece of infrastructure.
Or worse, the patent troll uses various tricks to delay award of the patent until the industry has implemented the technology on millions of platforms and then surprises everybody with mass infringement lawsuits.
The patent process would probably be improved if before awarding a patent they asked a panel of experts how they would solve the problem that the patent solves. If the experts come up with the same solution in a short period of time then the patent is not awarded. Something has to be truly novel to be worthy of patent protection. Unfortunately this is not practical with the current volume of patents working through the system.
Patenting something today doesn't require innovation, but money and a large team of lawyers. Patents don't encourage innovation but hamper it. Try and start a company today, and a large chunk of your capital will need to be kept aside for legal defense and paying off patent trolls and larger competitors who will bury you in lawsuits for vague, meaningless infringements.
https://fee.org/articles/how-intellectual-property-impedes-c...