Imagination buys MIPS for $60M, 498 patents sold to consortium for $350M
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In MIPS's case, intellectual property protection made it possible to compete on designing CPU's rather than designing finished products for those CPU's to go into. It allowed them to focus on chip design rather than fab design or manufacturing. And it allowed them to accumulate something of value in the company itself that could be sold later.
Would CPU's get designed without patents? Of course. But I don't think the sort of beneficial division of labor you see with MIPS and ARM would be possible without some sort of intellectual property protection. When you can't easily transact in something, that forces you to try and move every operation involving that thing under one roof. And it's not hard to make the case that those kinds of monolithic companies are worse for competition than patent litigation.
The "monopoly" aspect isn't really relevant here. It's not like you accidentally stumble onto a MIPS patent. If you're infringing it's because you're copying the design.
Well that audacious. I'm will be less daring and say that with 500 patents, you are most certainly wrong about some of them.
Last time I said this, you brought up a 60 year old RF parent, but I'll give you another shot and say that I hav never seen a software patent worth protecting.
My example for a software patent would be the h.264 patent. That's not something a practitioner of ordinary skill would find obvious.
Patents and copyright have grown to become much more defense structures and "keep out" signs, which I think unfortunate, but the basic premise is sound.
The point is that if there really are so many entities just trying to abuse the system, they don't need patents to do it.
Just as an example, a really tight "intellectual property" regime would have to have laws banning unapproved operating systems (to prevent copying) and laws banning unapproved encryption (to prevent transferring "IP"). Maybe the encryption would have official backdoor keys to allow for inspection of encrypted data. Possession of encrypted data would possibly become criminal, too. Then there's the money price of enforcement, which won't be trivial.
Is all that worth it so we can have a MIPS?
As for your hypothetical example, who says the strongest possible intellectual property regime is the best one, and how does that imply that no intellectual property regime is the right answer? We certainly don't aggressively enforce other kinds of property rights. You can't sue someone if their dogs crap runs onto your yard when it rains, even though in theory you could define that as an infringement of your property right. We try to balance things. Enforce rights enough to give structure to human interaction without enforcing too much and stifling that interaction.
This is a logical fallacy: for an act to be illegal, it does not follow that the state is empowered to preempt it from ever occurring at all, especially at the expense of basic civil rights. Conspiracy to commit murder is illegal; yet most police forces don't read every piece of communication to make sure it isn't a murder plan. Domestic violence is a crime; yet there are not spouse-monitoring CCTV cameras in every household.
We also have a lot of "spying" precedents in the USA. Google "CALEA", "DCS-3000", "DCS-6000". Once something becomes illegal, almost nothing will be spared to suppress it. The NSA is almost certainly snooping on almost every US citizen, with the aid of telecomm companies. Google for "Room 641A". They aren't even looking for specific crimes, they're just monitoring.
Google for "crypto wars" to see what the USA wanted to do. Read especially the specifics of Skipjack that you can find. Ask yourself why cryptography was so nearly suppressed.
I don't really think this is over-the-top: it's almost factual, very little separates us from a really tight "IP" control regime.
You can use my "intellectual property" at exactly the same time and pretty much in exactly the same way as I use it. The law about "IP" is not about property per se, it's about monopoly. Some government agrees to enforce your monopoly on some idea.
Would someone clean-room reimplementing a MIPS compatible chip be a bad thing, though? This isn't possible with patents.
I used to work on military radios, and we spent millions of dollars and years developing our technology. The bulk of that investment was coming up with designs that worked well. We shipped customers reference code. Copyright kept the customer from copying the code itself, but didn't stop them from looking at how our code worked and writing their own version. But the code was the easy part--once you knew exactly what the code should do, it was a matter of 3-6 months of fairly straightforward coding to reproduce it without literally copying the code. It wasn't like say Windows where the hard part is literally reproducing all those 10 million lines of code.
I don't think this is true. You are creating a derived work, after all.
Googling for blueprint and copyright shows that copyright disallows unauthorized implementation at least in the case of buildings.
Just as software can be licensed with terms, surely these "blueprints" can be licensed with very specific regulations on how and where they can be used. Violating that agreement, which is very specific in nature, would be a lot more reasonable to enforce than what we have now.
Those patents that've been sold off are most likely going to be used to shake-down other companies and lock out innovation. The most exploitable will be cherry picked, shunted into shell companies, and in time some jury in East Texas will have to make a decision on how many billions in damages need to be awarded.
I mean neither of us have the data to show just how heavy handed or not the patent system actually is. I don't think it's particularly heavy handed, but then again my experience is in industries (defense, telecom) where "heavy" means something quite different.
At least outside the software realm, my intuition is that companies illegitimately ripping off another company's designs is a bigger problem than companies accidentally arriving at similar designs and patents being used to "shake them down."
I also think it's disingenuous to paint a picture where you have "100% innovation" on one side of the spectrum, with any patent rights as "locking out innovation." Again, because of my background I tend to see the innovation process as not a couple of guys in a garage doing some Kickstarter-funded web page, but companies working with universities and the government to build big technologies that require huge amounts of capital investment. The patent regime really facilitates those interactions, and I think increases innovation in doing so. When you're dealing with big organizations, a predictable set of property rights is much preferable to a fragile web of NDA's.
So for example MIPS could become a CPU design consulting company to fab companies that want to produce chips. It seems to me that this would reduce barriers to entry and improve allocation of resources.
I wouldn't be surprised if far more people have SSH'd into their router's shell than have bought Raspberry Pi's.