Lawmakers Debate Patent Immunity For Banks 382
I Don't Believe in Imaginary Property writes "Now that a small Texas company has a patent on scanning and archiving checks — something every bank does — that has survived a USPTO challenge, lawmakers feel they have to do something about it. Rather than reform patent law, they seem to think it wiser to protect the banks from having to pay billions in royalties by using eminent domain to buy the patent for an estimated $1 billion in taxpayer money, immunizing the banks. The bill is sponsored by Sen. Jeff Sessions (R-AL)."
Well can't say I blame em. (Score:4, Interesting)
Sometimes a band aid is better than a hastily planned and thus ill-conceived surgery.
Is anyone really surprised by this? (Score:4, Interesting)
Why does anyone entertain the idea that the banks need to be bailed out? I would be inclined to let the economy finally crumble, and rebuild it. Sure, it'll suck, but we'll be better off because of it, if we fix it the right way.
other option... (Score:3, Interesting)
Re:Well can't say I blame em. (Score:5, Interesting)
...
He said he talked to some bank officials at an early stage of the check system's development and, despite having signed nondisclosure agreements with them, soon lost control over his invention.
Not to mention that Senator Session's explanation sounds a bit dishonest:
"in the wake of the grounding of aircraft laden with billions of dollars in checks after the Sept. 11, 2001, attacks -- federal law was changed to allow electronic transfers as well."
"Stephen Boyd, a spokesman for Sessions, said the provision "is designed to protect banking institutions complying with post-9/11 security requirements from the abusive practices of patent trolling trial lawyers"
Which is it?
Were electronic transfers allowed by the Feds or required by post 9/11 security requirements?
This whole thing reeks of corporate asshattery.
I Can See The Future... (Score:4, Interesting)
Giving a patent holder a billion dollars to buy their patent will encourage patent trolls to come out in force. The government's giving away billions here, why not give it a go? You can patent something obvious, sue the banks and donate to the political parties. Soon enough someone will buy you out, and you get to retire a very wealthy person!
Sure, it may not work out so easily, but what's to stop anyone from trying?
Re:Not sure who the bad guys are here - the banks? (Score:1, Interesting)
The issue at stake with the $1bn is the possibility that Ballard could simply refuse to license the cheques for any reasonable sum. I don't know how this method is even used or how integral a part it is to automated systems, but let's say he refused to sell it for any sum that was more than marginally below the cost of every banking branch in the country taking apart age-old machines.
The government has however the (much debated) right to 'eminent domain' - to force someone to sell something, for the greater good of the people, at a price they decide is fair. The issues there are wide, but consider e.g. someone discovers a cure to HIV and patents it - and wanted to charge $50m per dose. In that case his property rights would place that well within his rights, but eminent domain could have the government force him to give it away, because the cost to society of adhering to property rights in that specific instance is considered too heavy. In this case, if there is a massive cost and resource need to the entire banking system, and Ballard refuses any non-exuberant licensing terms, then eminent domain sounds like a possible way to go.
I wouldn't however object to eminent domain being used and then a one-off tax being levied on all the banks using the technology. That means less time spent by engineers switching out machines for no good reason when they could do things that really benefitted people.
Re:Is anyone really surprised by this? (Score:1, Interesting)
Cheque Processing Companies (Score:1, Interesting)
Re:Is anyone really surprised by this? (Score:3, Interesting)
This problem is compounded when you consider that even if the economy is based on some amount of principle, and money is created out of the principle, and adds overhead of interest, then the only way to pay back any loans requires the creation of more principle. But when all principle is created out of debt, then there can never be enough money to pay off the interest. It's worse than a zero sum game.
Obviously, we cannot base the economy on physical objects either. They're not convenient, and we'd wind up replacing them with some kind of convenient representation, and we'd wind up back where we started, as the representation would need to be controlled. There are things that cannot be replicated however. Work is one of them. See LETS [wikipedia.org] (Local Exchange Trading System) for instance. It's unfortunate that it sounds similar to communism, yet you can easily turn it into a capitalist-like society, since it can be built without government control (and thus, is not actually communist either)
Re:Is anyone really surprised by this? (Score:4, Interesting)
You'll see stock prices are random. Study after study proves it. It's not a mystery but there isn't a formula either.
You'll see that cutting tax rates leads to increased Gov't revenues by growing the economy. (Don't give me the crap about Reagan, he spent it and then some but it busted the Soviet Union..not a bad use of the money).
You'll see the greater than 50% of the Budget goes to Social Programs started in the New Deal and continued to this day. Remember the real cost of Social Security is not well known, it's an off-budget item. And these costs are growing. Medicare alone is predicted to outgrow the growth in GNP (and thus increases in taxes if rates remanin constant) by several hundred percent.
You'll see most people who are retired can't live on Social Security alone. So much for that program.
You'll see that black Americans still are very improverished, and we now have a class of citizens who have been on welfare for generations. Is that helping anyone?
You'll see that other than in 1996 when the Republicans kept their majorities in both the Senate and the House, marking the first time since the late 1920s that Republicans comprised a majority of the House for two consecutive sessions. Republicans held a majority in the U.S. Senate from 1981 through 1986 as well (Reagan 1st term), for one year in 2000 again in 2002 but not since. You can't blame long term problems on groups who haven't been in control of the process.
You'll see a failure to increase a program budget by the proposed X% is called a "cut". If your boss didn't give you that 10% raise did your salary go down?
It's just flat incorrect when you look at facts (scientific methods look at facts not opinions) to blame anyone but the liberal Democrats for the social spending problems we have. Democrats controlled Congress for 80% of the time, and they built the programs and they continued to fund them at increasing rates. Yes, the War in Iraq has taken money in recent years and made things worse but that's a blip of 6 yrs on the radar screen of close to 70 yrs of social spending.
Business methods should not be patentable (Score:4, Interesting)
and so Wachovia has to opt for the less user-friendly: take a dollar on every transaction. (Actually,
they could presumably go for the "X% of the transaction value")
I don't get it. (Score:3, Interesting)
So what is so special about the Check 21 (check truncation) that warrants a patent?
Re:Is anyone really surprised by this? (Score:3, Interesting)
Banks do not need 'money on hand' to create a loan. A Loan, currently, based on fiat, is created out of a ratio of money on hand, and in many cases, out of nothing!
If a bank can create money at will, based on nothing, then where does the money to pay interest come from?
For that matter, if you lower the price of milk by producing more of it, then all milk producers earn less, overall. Less is available to pay their workers, and thus, the milk industry loses in proportion to the amount of milk produced. Thus, the system creates no new value at all. Also, if you're opening the dairy, where does the capital come from? The bank? If you take out a loan, your Dairy belongs to the bank. In order to pay it off, you need to pay off the debt, which includes the principle *AND* the interest. But in a system founded on debt, the interest represents an amount that cannot exist.
So, inevitably, all things will eventually belong to the bank, since the system *must* crash, eventually.
Re:Well, now... (Score:2, Interesting)