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Businesses Patents

A Survey of the State of IP 160

An anonymous reader writes "This week's Economist has a number of stories in its survey of the state of IP (link to lead article), written from a balanced, business-oriented perspective. If you do not have a web subscription it is worth picking up a newsstand edition, if only to read a defense of open source from being seen as a 'flaky, radical, pinko strategy not related to the competitive marketplace'." From the article: "In recent years intellectual property has received a lot more attention because ideas and innovations have become the most important resource, replacing land, energy and raw materials. As much as three-quarters of the value of publicly traded companies in America comes from intangible assets, up from around 40% in the early 1980s."
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A Survey of the State of IP

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  • by Elektroschock ( 659467 ) on Sunday October 23, 2005 @08:58PM (#13860718)
    F. A. von Hayek, "'Free' Enterprise and Competitive Order". In Individualism and Economic Order, Chicago: U. of Chicago Press, 1948, p 113-114.

    The problem of the prevention of monopoly and the prevention of competition is raised much more acutely in certain other fields to which the concept of property has been extended only in recent times. I am thinking here of the extension of the concept of property to such rights and privileges as patents for inventions, copyright, trade-marks, and the like. It seems to me beyond doubt that in these fields a slavish application of the concept of property as it has been developed for material things has done a great deal to foster the growth of monopoly and that here drastic reforms may be required if competition is to be made to work.[..] Patents, in particular, are specially interesting from our point of view because they provide so clear an illustration of how it is necessary in all such instances not to apply a ready-made formula but to go back to the rationale of the market system and to decide for each class what the precise rights are to be which the government ought to protect.
    This is a task at least as much for economists as for lawyers. Perhaps it is not a waste of your time if I illustrate what I have in mind by quoting a rather well-known decision in which an American judge argued that 'as to the suggestion that competitors were excluded from the use of the patent we
    answer that such exclusion may be said to have been the very essence of the right conferred by the patent' and adds 'as it is the privilege of any owner of property to use it or not to use it without any question of motive'. It is this last statement which seems to me to be significant for the way in which a mechanical extension of the property concept by lawyers has done so much to create undesirable and harmful privilege.

  • by argoff ( 142580 ) on Sunday October 23, 2005 @10:56PM (#13861200)

    From what I understand, RMS, who created the GPL tried that, but what happened is that someone took the code he put in the public domain, modified it and enhanced it some, re-copyrighted it and locked RMS out from using it.

    After that, RMS went to a lawyer and had the GPL written up to make sure noone could re-copyright something he wrote and use it like that ever again.

    The GPL is like fighting fire with fire. If copyrights didn't exist, there would be
    no need for the GPL to exist either. But since they do, the GPL is a tool in the anti-copyright arsenel.
  • by FlorianMueller ( 801981 ) on Monday October 24, 2005 @12:13AM (#13861485) Homepage
    The vaunted Economist must be careful about its reputation. Last year, they had a long story on patents in which they expressly said: "The patent systems of the world aren't working." Now they come up with this pseudo-objective praise of software patents. That's schizophrenia, not pluralism.

    The competence of the author(s) with respect to the software industry must be seriously called into question, as the article says that companies selling open-source company are pro-patent, and then a Novell person is quoted. Novell only derives about 4% of its revenues from open source (the SuSE acquisition is a near-total failure). In contrast, Red Hat, MySQL AB, Mandriva, JBoss and other (real) open-source companies have publicly spoken out against software patents. It wouldn't have taken much research effort, even if only performed by a person with an extremely limited understanding of the software industry, to track down those statements. They're all over the Web, and in case of Red Hat and MySQL AB, they're on the corporate websites (plus those two companies co-sponsored my NoSoftwarePatents.com campaign, which is also easy to find out).

    I'm also wondering why a publication that calls itself "The Economist" can't give serious consideration to economic studies (such as Bessen/Hunt) that take a much more critical perspective on the implications of today's patent regime. It seems that the Economist was under strong PR influence from Microsoft in this case because there are some typical MSFT points in it, such as this claim that software patents are needed in order to be adequately protected when publicizing information (which MSFT says in reference to governmental demands to disclose source code).

    The Economist article is fundamentally flawed, but this has to be attributed to the fact that the pro-patent forces like Microsoft make an incessant effort, day in day out, to pitch journalists with their story of patents and how they serve innovation. From time to time, they find an impressionable or credulous author who serves their purposes (or a journalist whose goodwill is easy to get by just inviting him somewhere for a week or whatever). In contrast, those companies and organizations which are critical of software patents have been relatively inactive since the European Parliament's decision on 6 July. As long as we were making an aggressive and professional PR effort ourselves, we also got better results. Nothing comes from nothing, it's as simple as that.

    At least there is one activity going on these days: We're very likely to win the Internet poll for the "EV50 Europeans of the Year" [nosoftwarepatents.com], the EU's premier political award. By pushing our candidates through (I'm also running in two categories myself) and preventing pro-patent politicians from winning anything, we can get another publicity opportunity for our cause and demonstrate to politicians that our movement is still to be reckoned with. The "EV" in "EV50" means "European Voice", an EU-focused publication that belongs to the Economist publishing group, and one of the three main sponsors is Microsoft :-)

    Richard Stallman, Tim O'Reilly, Alan Cox (Linux kernel maintainer), Rasmus Lerdorf (PHP) and Monty Widenius (MySQL) have made a public statement in which they call on the FOSS community worldwide to participate in that Internet poll:
    ag-IP-news: Luminaries Call on Worldwide Community to Vote Against Software Patents [ag-ip-news.com]

    They have specifically endorsed our voting recommendations [nosoftwarepatents.com]. Please read those voting recommendations and give serious consideration to supporting our cause that way.

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