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The Case Against Intellectual Property 243

dhilvert writes "David Levine and Michele Boldrin argue that current IP laws encourage an inefficient rent model and stifle the potential for innovation without intellectual monopoly. Levine teaches at UCLA and maintains an Economic and Game Theory page."
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The Case Against Intellectual Property

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  • Seems there is a thin line between protecting people and stifiling creativity. Personally I think IP laws go a little too far as it is.
  • by trotski ( 592530 ) on Saturday February 15, 2003 @03:11AM (#5307781)
    A question one must ask one's self is when does a research result or algorithim or something stop being a matematical or scientific process, that should be shared with everyone and when does it become intelectual property?

    I mean, the 'breast cancer gene' has been patented, the harvard mouse too; not to mention all of the computer algorithims that are patented. Whatever happened to the notion that mathematics and science should be shared with everyone? The scientific community has functioned on the 'open source' model for hundreds of years, but it seems that thanks to the concept of 'intelectual property' this is all changeing.

    Really, I mean some of these patent claims are analogous to Newton/Leibnits attempting to patent calculus or Feynmann trying to patent his discoveries in quantum electrodynamics.The point is when does intelectual property become a rediculous concept, or is it a rediculous concept from the very begining?
    • by Billly Gates ( 198444 ) on Saturday February 15, 2003 @03:27AM (#5307807) Journal
      Actually IP was made for this very reason. WIth IP rights creators can share their discoveries and not having to worry about anyone ripping them off.

      Now the very definition means you can't even copy, use, view, or even talk about something if you do not have a license to do it. You should be able to ask Kinko's to copy a copyrighted photo for your daughters elementary school product. The copyright system was created for this and now you can not.

      With patenting something physical is one thing because you can see how it works but patenting something virtual like software which is required to access something is totally different. I feel Microsoft's move with palladium and patenting drm is bad. Not only is the information not publicly shared but it will lock every computer to only Microsoft so they can kill competition and raise prices.

      • Trouble is you have these people coming up with all sorts of crazy ideas, like they invented the internet, then start pestering people for a fee.

        To me thats like claiming I have the rights to indoor plumbing because my great-great grandpa did it, and I have proof. Only thing it would take is an investment in Congress to get my law passed and I could maybe make a nickel a flush.

        • by Billly Gates ( 198444 ) on Saturday February 15, 2003 @04:04AM (#5307886) Journal
          " Trouble is you have these people coming up with all sorts of crazy ideas, like they invented the internet, then start pestering people for a fee."



          This is what I meant by patening a means to access. Patening the internet or plumbing is an example of this. This brings in shitloads of money and this is why there is a contest in corporate America to patent something first before your competitors do so. A structure or algorithm should not be patented because they are used to access data or be used in a method to access the data.

          This kind of patenting should be illegal wether its prior art or not. That in return would kill software patents as well as drug companies patenting genes.

          You think patenting software is evil, then you know nothing of the horrors of the drug and bio-engineering market which is price gouging. IT makes Enron look ethical.

          Software is scary because its not real but virtual. No one can make a compatible system if something is closed. Any physical object can be examined if its patented but not software unless its opened. OLE and DCOM is what is keeping Microsoft a monopoly. Because their products are virtual no one but Microsoft knows the inept details about them. Everyone else only knows how to use them and not build a competitor.

          • by anubi ( 640541 ) on Saturday February 15, 2003 @05:11AM (#5307981) Journal
            Yes, I am seeing this.

            And it scares the kerpookie out of me.

            No matter how you design or code anything, you are sure to step on something someone has documented. I mostly do analog design.. now there are several circuit topologies for switching power supply design.. but are any of them safe to use outside of an academic lab? Or as mentioned, can one even use a quicksort algorithm without the risk of the letter in the mail? What if I use a m-way search tree in a custom mini-database which keeps track of some activities my robots are doing... can I expect somewhere someone is going to see I am using an m-way tree and hold my company ransom for it?

            I can only imagine what it is like in the biochemical industry. I have seen my share of organic synthesis books.. and how similar organic molecules are. You can darned interpret anything you want if you get Congress to back your patent. Its like coming to the building industry because they used copper wire, copper pipe, bricks, nails, whatever in the construction of the building, and you have your lawyers hold them hostage for it.

            Scary indeed...

            But then my great hope is the Chinese. Hopefully they will look at us and learn. They will be able to innovate and construct and hopefully use their resources for production instead of litigation. It won't bode well over here in the States, but then Congress may have another thing to consider, how do you control the masses of people once they have lost their homes and no longer have money or jobs to pay rent. I do not like to be a fat man in the presence of hordes of hungry wolves.

            • by Anonymous Coward
              Once the Chinese start producing intellectual property (a goal of the current regime is to make China a net exporter of IP), I'm sure we'll see a massive shift in the Chinese state's attitude towards IP and enforcement of IP-protection laws.
      • by Anonymous Coward
        There's also a historical precedent for supporting IP laws, namely that countries without strong IP laws (e.g. the USA prior to the late 19th century) have typically produced far less innovation than countries with strong IP laws (e.g. the UK and Europe in the 18th, 19th and even early 20th centuries).

        Having said that, I think current IP laws probably go too far. I think a balance is needed between encouraging people (writers, artists, programmers) to produce IP and allowing them to keep a stranglehold over it for obscene lengths of time.

        Incidentally, Palladium is basically the MS implementation of the TCPA proposals (though not entirely in line with the TCPA specs, which are still evolving). If the TCPA is able to establish open standards for trusted computing, and MS uses them, there's no lock-in. That's why I think it's important to support the TCPA and ensure it's implemented on more than one platform.
    • by The Tyro ( 247333 ) on Saturday February 15, 2003 @03:33AM (#5307817)
      I remember learning about James Watt... I certainly never learned about the patent angle, and his subsequent crushing of his competitors. An interesting hypothesis, that his patent and "rent-seeking behavior" delayed the industrial revolution by 30+ years.

      I don't know when the IP-seeking behavior began in academia (I haven't been in it long enough to pontificate about the "old days). Perhaps it has always been there, and people were simply much more discrete about their patent filings.

      Some of the patent drive may be related to the "publish-or-perish" mentality that exists at many larger universities. Aside from generating prestige and name-recognition, having a nice fat generating-income-for-the-university patent out there could do wonders for your chances of being granted tenure. Then again, it might also be a transparent attempt to financially rest on one's laurels, as it were.

    • by bm_luethke ( 253362 ) <luethkebNO@SPAMcomcast.net> on Saturday February 15, 2003 @03:34AM (#5307819)
      "The point is when does intelectual property become a rediculous concept, or is it a rediculous concept from the very begining?"

      That is a really difficult question. At what point does an algorithm become a mathematical equation. At what point does patenting it become a detriment to society.

      To use medical stuff as a starting point the theory (and it is well played out in reality) is that the development cost is huge, manufacturing cost is tiny - same is true in CS. In order for them to recoupe costs (and therefore make them want to do the research) they are given a period of unilateral controll of sales. In the end it drives progress, for a few years only a select few get the rewards, in the long run the poorest are extremely elevated.

      Software, unfortunatly, does not have the much harder line that a pill does (not really a physical product from quicksort). Is a windowing system patentable? is Quicksort?

      Ultimatly the question is "does this help advance society". We, in many cases, are quite capable of answering this question. That question is supposed to be the job of the courts or the patent office. Unfortunatly they want an expert system type of decision making. A simple yes/no based on a simple given input written in a few pages of documentation. Patenting online sales in our current date is idiotic, but it passes thier simple "yes/no algorithm". Patenting a new extremely low latency/high throughput network interconnect is patentable (and really should be).

      The next question is length of patents. In our industry a 5 year patent is really "in the past" let alone our current patent system. If you can't make a profit in 5 years in CS a ten year patent will not make you a profit, nor will a longer one. On the other hand it seriously dampens societies progress.

      Patents are supposed to be, and should be, a balance between the need of society to benefit from advances in tech, and the people who invented the tech (or corperation) need to profit from the tech. When one is given great priority over the other the system gets screwed. It generally takes a person, capable of rational thought, to find that line, not a simple "yes/no" solution. Plus they need to realise the line is not necessarily in the same place each time (and some may disagree), that is why there is such a thing as "comprimise" (which is where neither side is happy, and neither side is greatly unhappy :) ).
      • by Anonymous Coward
        In order for them to recoupe costs (and therefore make them want to do the research) they are given a period of unilateral controll of sales.

        There's where I disagree. Research is supposed to be about simply learning more - knowing new stuff. It's not supposed to be about recouping costs or producing sales. Maybe it's changing due to acadamia being commoditized or simply selling-out, but I think it's fundamentally wrong.

        Sales can be produced through application of research. I don't think a gene in-itself should be able to be patented, but a product doing something neat with it sure can. You want to use knowledge to make money, you have to do something, not just know something.

        The intangibility of thought or IP is a major problem. Every heard of the hundred monkeys experiment? Basically it illustrates that once enough people (monkeys) know how to do something, then eveyrone knows. The concept of "owning" an idea is broken from the start.

        The OpenSource movement illustrates the problem with IP laws quite well; People work better feeding off of each others ideas and energy. Competition is good, but it really works better with free information exchange - otherwise there's too much wheel reinvention going on. And with IP laws, when you do reinvent that wheel, you'll probably wind up in court!
      • by Znork ( 31774 ) on Saturday February 15, 2003 @07:50AM (#5308229)
        Actually, like all laws in a democracy, patents are supposed to be solely for the benefit of society. Laws are only made to benefit individuals and corporations as far as the end result of those laws is a benefit for society (or, rather, the voters).

        In the case of patents there is a benefit if allowing patents has a result of inventions being available to society faster and more ubiquitously than they would otherwise be. That's a good idea for things that take a long time to develop and are unlikely to be independently developed by many different inventors. However, when the patent office allows 'trivial' patents, the result instead is that something that would have been freely and ubiquitously available for everyone, due to the ease of which it can be invented as need arises, is instead that society as a whole and other independent inventors are deprived of the use of that invention for a certain time.

        What I'd like to see in the patent system would be a kind of brainstorming. When a patent is applied for, the problem the patent is intended to solve has to be posed (in engineering terms). A group of 5-10 engineers who are well versed in the field of the patent gets a day each (or in a group) to figure out possible solutions to the problem. If anyone comes up with a solution close to the patent the invention is declared trivial and unpatentable, and the solution and any other ideas the engineers have are entered in a database as prior unpatentable art, against which any further patent applications are compared for triviality.

        Such a solution would probably be rather personell intensive in the beginning, but as the database evolves and more one-click shopping solutions get dumped on application there would probably be a sharp drop in frivolous patent applications and the system could go back to what it was supposed to be in the first place.
        • What I'd like to see in the patent system would be a kind of brainstorming. When a patent is applied for, the problem the patent is intended to solve has to be posed (in engineering terms). A group of 5-10 engineers who are well versed in the field of the patent gets a day each (or in a group) to figure out possible solutions to the problem. If anyone comes up with a solution close to the patent the invention is declared trivial and unpatentable, and the solution and any other ideas the engineers have are entered in a database as prior unpatentable art, against which any further patent applications are compared for triviality.

          You'd also need qualified people to both express the problem in the appropriate terms (which would soon put a stop to applications attempting make up their own jargon to make something appear "innovative"). Also you need experts to make the judgement as to if something is similar enough, including checking a database.
        • are not a new problem at the US Patent Office. Just one example is that there were many patents issued for nearly non-existent modifications to the basic ceramic tube insulator that was used in structural wiring in the late 19th and early 20th centuries. For example, they were issued for the addition of trivial details like tiny, paired projections that "locked" the tube in place. More than one patent was issued for very slightly different variations on this idea.

    • Prior Art (Score:2, Interesting)

      by ausgnome ( 650653 )
      Hmm wouldn't there be lots of prior art on the cancer gene already over the last few thousand years how can you patent a natuarly occuring gene.
    • The point is when does intelectual property become a rediculous concept, or is it a rediculous concept from the very begining?


      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 concept is very noble and sound. It's the implementation that's been screwed.

      The US Constitution clearly states that IP Laws have to serve particular purpose, whereas today IP Laws implementation treats them almost as property laws without regard of the delicate balance between the rights of said Authors and the society.

      (other countries have less clear and thoght out basis for IP Laws and yet they manage to deliver better ``deal'')

      Robert
    • by NZheretic ( 23872 ) on Saturday February 15, 2003 @06:18AM (#5308045) Homepage Journal
      PATENTS: If people had understood how patents would be granted when most of today's ideas were invented, and had taken out patents, the industry would be at a complete standstill today. I feel certain that some large company will patent some obvious thing related to interface, object orientation, algorithm, application extension or other crucial technique. If we assume this company has no need of any of our patents then the have a 17-year right to take as much of our profits as they want. The solution to this is patent exchanges with large companies and patenting as much as we can. Amazingly we havn't done any patent exchanges tha I am aware of. Amazingly we havn't found a way to use our licensing position to avoid having our own customers cause patent problems for us.
      -- Bill Gates, Challenges and Strategy Memo [std.com] May 16, 1991

    • There is one and only one good thing about patenting software, instead of copyrighting it. Patents expire. With Congress extending them every 20 years, copyrights never will.
  • IP (Score:2, Funny)

    by absurdhero ( 614828 )
    Hey, That idea is my intellectual property. Time to get out the ol' IP Army again...
  • by occam ( 20826 ) on Saturday February 15, 2003 @03:25AM (#5307802)
    Now, the wolves are guarding the hen house. In the early 90's, when Bruce Lehmann hosted the USPTO's sham hearings on whether to institutionalize s/w patents, his panel was comprised entirely of lawyers.

    IOW, lawyers chose to instititionalize s/w patents in spite of strong protests from individuals throughout the software industry.

    From that point on, it has been accepted that lawyers have the right to reap profits and taxes off of so-called innovation in software. It's a huge inefficiency, impossible to enforce, and impossible for anyone to prove virtually any software is unencumbered by patent conflicts. It's ridiculous.

    The USPTO loves it though. They just increased their staff to handle their backlog which will forever increase since software patents are prolific and easily twisted into patent submissions.

    Better yet, lawyers are having a heyday. The more lawsuits, the better. They get wealthy while the software industry grinds to a halt. It's obscene and a severe conflict of interest that they should have instituted s/w patents over all reason from the s/w industry itself.

    I'm not even sure it's legal. I wonder what authority the USPTO head, Bruce Lehmann, really had. Was he appointed, and by whom? He certainly wasn't a member of Congress where laws should be created.

    S/w patents should be abolished.
    • by Anonymous Coward
      Before I disagree with the abolition of software patents, there are a couple of things worth pointing out.

      IIRC Edison did a lot of research including about 1000 attempts to get the light bulb to work properly. He then found that most of the work was prior art except for one patentable item. He then found that this had been patented about four years earlier.

      I'm all for software patents ......... in the USA!

      When IBM introduced the PC it was described as "the trailing edge of technology." Most innovation in this area since has avoided the patent route.

      The two examples above suggest there is a fundamental problem with the granting of patents as a public good. Given that the European Community has distanced itself from software patents, the big question is this: Will software innovation in the EC now exceed that of the USA?
    • by hype7 ( 239530 ) <u3295110&anu,edu,au> on Saturday February 15, 2003 @06:48AM (#5308109) Journal
      Better yet, lawyers are having a heyday. The more lawsuits, the better.


      But isn't this the US all over? I know you must be sick and tired of hearing being the most litigatious society etc - but don't think it's just limited to IP.

      You want to talk about wolves guarding the henhouse? How many politicians used to be lawyers?

      -- james
      • Hey, did you know that even Lawyers need malpractice insurance?

        Talk about living in a hell of your own making.

      • we get doofey assed shit like "pi is three." ( Ok, so they're not exactly high school graduates either).

        There's a certain sense in lawyers serving in the body that creates law. Lawyers understand law, the philosophy, the coherence, the limitations, etc..

        Of course, they're also a closed trade guild.

        Not every theory is perfect.

        KFG
      • I'm going to propose something revolutionary, ok? And you'll have to be very patient and honest when I say this.

        What is happening in law and IP today is structurally and materially no different from what happened in the technology industry after about 1994. It's an orgy on a new profit source. It's a bubble. There will be a lot of mid-level or worse IP lawyers who get very, very wealthy for a few years, and then the bubble will burst.

        Lawyers are almost always 5-10 years behind major trends, and this is no exception.

        C'mon, are you going to attack the lawyers for getting rich off of software patents but excuse the VC who gave money to (and profited from) etaxidermy.com or some such stupid thing? The lawyer's no better than the money-hungry bubble riders of the last decade, but he's no worse either.

        Perhaps some lawyers are in a better position to manipulate the system than the average technology worker, but that's not a conclusive argument. There are plenty of technology leaders who can manipulate their systems and force us consumers to buy overpriced merchandise with questionable technical merit (cell phones, until recently, fell into this category; POTS companies as well).

        Do I think IP is over-litigated? Yes. Do I think there are thousands of useless patents that stifle innovation? Hell yes. Do I think it will last forever? Nope.

        But you need to remember something. The USPTO is incredibly picky and self-protective. To sit for the patent bar, you have to have an undergraduate degree in physics, chemistry, biology, etc. I do not believe CS is eligible. So, the USPTO is filled with people who know a lot about physics and chemistry, but next to nothing about software and computers. And they're issuing the patents.

        If you want to lash out at anybody, lash out at the stodgy and overly-permissive USPTO rather than the lawyers who are getting rich off of their ignorance. (Ok, lash out at the lawyers too, but recognize that they're just hitting an opportunity, not - entirely - making it.)
      • You want to talk about wolves guarding the henhouse? How many politicians used to be lawyers?

        Worse, how many of them are trial lawyers, like Democrat presidential candidate Senator Edwards [nationalreview.com]? These lawyers are so out of control that doctors are going on strike [yahoo.com] to protest the resulting six-figure malpractice insurance premiums. The loot from lawsuits bankrolls an awful lot of politicians, though, so I expect things to keep getting worse for quite a bit longer.
      • Sure, lawyers make a living by lawyering. Guilty as charged, but to suggest that they affirmatively promote or provoke patent litigation is ludicrous. While there are certainly a share of contingency fee lawyers out there, and perhaps some of them may well be provoking litigation that would not otherwise hold, the vast majority of lawyers sue for a fee.

        Blame --at least in part-- the clients who decide that the upside of the litigation (or its favorable resolution) outweighs those fees, and the lawmakers who decided that the bases for that litigation do serve the policy interests of our nation, notwisthanding the minority opinion of these economists.
    • Some people just like to blame lawyers for their problems. Not that the profession doesn't have its share of embarassments, but this is not the best argument for the position you assert. Neither lawyers nor the USPTO "lobbied" to "institutionalize" software patents. You simply have it wrong.

      Indeed, the USPTO for years opposed software patents, and regularly rejected blatant claims to algorithms as a matter of course. It was the Supreme Court in Diamond v. Diehr, reversing a USPTO ruling, and then later the Federal Circuit, reversing USPTO decisions in cases like In re Alapatt, and then later in State Street Bank and the AT&T cases, that determined the present state of software patents.

      Some people will just blame the lawyers as a matter of ideological course -- and nothing will stop that. But here the "blame" (or praise) is not due to lawyers or the PTO -- blame this one entirely on the Congress and the courts.
  • IP is Efficient (Score:4, Insightful)

    by Anonymous Coward on Saturday February 15, 2003 @03:25AM (#5307803)
    Protecting businesses with regulation returns the least effort with the most campaign contributions. Politicians are great advocates of the 'for rent' model.
  • IP Goes too far (Score:4, Interesting)

    by amigaluvr ( 644269 ) on Saturday February 15, 2003 @03:27AM (#5307808) Journal
    What is it IP laws go far to protect? a forcing of people into one model?

    Where to protect your rights and inventions you must sue people and protect them under a situation of IP laws that are too old now

    Whatever happened to the idea of 'a good name'. A company could live off of its good name and good will by being well known and respected because of it their actions. If they truly have good IP then they will be respected for inventing it and earn more in other areas

    that to me and mindshare is worth more than copywriting their invebntions and just making forceful noises about people paying them for it.

    note:the slashdot user 'danamania' is a transexual. beware of him
    • I agree with you in full. It is just too easy to be wrecked by cheaters. I think problems extend beyond copyrights. All companies live in fear because at any time a lesser competitor can drive them out of business through a number of underhanded and hard to prove techniques.
      • Leverage enough capital to buy you outright.
      • Leverage enough capital to buy out the rest of the market, then promote on mindshare.
      • Leverage enough capital to buy out your suppliers and/or distributers.
      • Sign exclusive contracts with your suppliers a/o distributers.
      • Spread lies about the performance of your products.
      • Swipe your product, and re-release a version that is just different enough.
      • Frivilous Trademark lawsuits.
      • Brain drain you by drawing away your best employees.

      It is WAY too easy to secure credit. How many companies go Chapter 11/13 after going on a buying binge? And how many markets did the decimate in the process? How many companies only clue to stop borrowing is when bamks won't give them any more money?

      We need to get ourselves, as a culture, to view debt as a vulgar, distateful way of life and doing business.

  • by marko123 ( 131635 ) on Saturday February 15, 2003 @03:28AM (#5307809) Homepage
    Disclaimer: I work at an IP firm as a programmer, but not as a professional in the IP field.

    Before people post "Burn down the IP laws!", make sure you have a valid alternative that comes some way toward protecting the rights of creative people.

    As a model for handling commercial rights, which not too many creative people seem to mind having, intellectual property laws are not a perfect construction. Especially now we are trying to stretch paper rights around a digital wordl. But to the distant cousins of anarchists would like to see the whole system trashed (because destroying things feels good):

    Go and read Animal Farm and construct a good alternative before you go starting a revolution.

    Cheers, and good luck :)
    • Because if you did, you would see that there are several solutions, all far better than our current model.
    • You have to admit the IP for software is a hard question to answer. If I write a fantastic best seller in english can I patent or should i be able to patent that idea so i can claim royalties if someone re writes it in french. Or is that what copyright is for.
    • by WolfWithoutAClause ( 162946 ) on Saturday February 15, 2003 @03:46AM (#5307845) Homepage
      I personally would advocate removal of monopoly rights on IP and go towards a percentage idea. Something like, the orginal inventor gets 5% of turnover or some such; and if there are more than one inventors then they split the 5% between them according to some scheme.

      The current system of monoplies is way too powerful for my taste.

      • I personally would advocate removal of monopoly rights on IP and go towards a percentage idea. Something like, the orginal inventor gets 5% of turnover or some such; and if there are more than one inventors then they split the 5% between them according to some scheme.
        If you do this with software, I've got a few remarks:
        - What if the program you wrote has 21 features that are protected by different patents?
        - Even more troubling: What about free software?
        (I believe those are also some of the arguments used by Stallman in "The Danger of Software Patents")
        • - What if the program you wrote has 21 features that are protected by different patents?

          Then the inventors split the 5% between them.

          - Even more troubling: What about free software?

          I don't really agree with patents on most software- it's too obvious for words 98% of the time, but I guess this will sort itself out in the long run when most of the obvious things are patented, or the patent office gets beaten with a clue stick.

          Yes, you don't want people deliberately 'open sourcing' patented technology (5% of nothing is still nothing). We could have a statutary minimum sum per implementation of a patent, to avoid this issue. But the IP owner could always wave any royalties if they agree with it being open sourced of course.

          • Then the inventors split the 5% between them.
            So you'd just have to secure a whole bunch of patents and use them in everything you produce (even if they aren't needed) so that 95% of the patents touched are yours. Hence you get to pay yourself most of that 5%, leaving 0.25% of the total for others.

            Of course you'd make sure to infringe on all your friends stuff as well (and them on yours). You could probably get it down to less than the cost of mailing the cheque given enough stupid patents.
            • So you'd just have to secure a whole bunch of patents and use them in everything you produce (even if they aren't needed) so that 95% of the patents touched are yours. Hence you get to pay yourself most of that 5%, leaving 0.25% of the total for others.

              Two things:

              a) I didn't say that it would be equal shares for every patent used; that doesn't work.

              b) adding useless stuff to your product makes it more expensive to make. If you overdo it; you lose more than the 5%. Also, the law courts start to weigh in at some point; if you've obviously just stuffed a patent in for no reason then they can take a dim view, and withhold payment.

    • Instead copyright lasting life of author plus 70 years (or whatever it is); make it 5 years. Instead of patents lasting 20 years; make them 3 years.
      • We live in a faster world, patent and copyright terms *should* be getting shorter instead of longer. But, When I argue against the Rodent Protection Act, I often end up in a stalemate with a person who cannot conceive of a non-Disney-Mickey.

        They feel that it's ok to extend copyright terms in order to protect "Disney" despite the fact that the man stopped breathing decades ago. They can never say just how long they think the term should be, just that "Mickey Mouse should always be exclusively Disney". Arguments about Cinderella, the wheel, fire, etc. just bounce off.

        It seems that many intelligent people just haven't thought this all the way through. Mickey mouse in the public domain is dissonant to them so they accept the alternative without considering the side effects.

    • And won. At least in America.

      As such it isn't necessary to construct a good alternative. One of the great legal and socio-political minds of the ages has done that for us already.

      His name? Thomas Jefferson. The founding father of American intellectual property.

      "Intellectual Property" does not exist. You can't find it, or make it, or put it in a safe and guard it with a pointy stick like you can "real" property.

      It's an abstract concept *created* by the laws of man. Created *specifically* so that it didn't simply rot and die in its creator's jealous little head. Created, primarily, for the good of *society.*

      Jefferson did a damned fine job of creating it, and we've been pissing in the pool for generations now.

      No, we don't need a revolution. We merely need to step back to that time just after the revolution had been won.

      If it takes a revolution to do that, well, I guess that second ammendment thingy makes sense after all.

      KFG
    • Disclaimer: I work at an IP firm as a programmer, but not as a professional in the IP field.

      What do you do as a programmer at an 'IP firm', program bots that spew reams of ridiculously obvious variations on standard business practices to be submitted as patent applications?

    • Go and read Animal Farm and construct a good alternative before you go starting a revolution

      Not sure why you think Animal Farm is very relevant to the keeping or discarding of IP cartels.

      Are you suggesting somehow that the patent system is fundamental to democracy? I hope you are not that confused.
    • Before people post "Burn down the IP laws!", make sure you have a valid alternative that comes some way toward protecting the rights of creative people.

      What makes you think that the current system does that? Copyright law was designed to protect publishers, and IP laws in general don't work unless you have a pile of money to pay lawyers.

      I don't want to eliminate Copyright and patent law, but I do want to limit severely what they cover and how low they last.

    • Before people post "Burn down the IP laws!", make sure you have a valid alternative that comes some way toward protecting the rights of creative people.

      The whole point of this discussion is that a persons "rights" aren't perfectly clear and certainly aren't recognized as natural rights. If you're in the United States nothing in the constitution protects your ability to claim copyright. The constitution allows congress to create copyright, but congress is free to revoke copyright just as easily. Your belief that a creator has some sort of fundamental right to control how a work he sold is used it a huge assumption. If I make a chair and sell it, the buyer is free to make copies. If I make a program and sell it, the buyer isn't free to make copies? Why? Just because it's easy to copy to the software, but hard to copy the chair?

      Yes, perhaps a world with intellectual property would destroy jobs and certain ways of making money. But many people would argue that new jobs and ways to make money will crop up. Even today musicians often make the majority of their money from concerts. Businesses will still need software, they can funnel their software budget to develop it themselves (or perhaps pool it with other businesses who desire similar software). The world would be different. Perhaps certain careers would not longer be possible. It would be a shame, but it's also a shame that telegraph operators and elevator operators lost their jobs. The world adapts, and to assume that you have some fundamental right to make money a particular way is insane.

      Personally I like intellectual property laws in theory, but our current set of laws are too powerful and last too long. But I can see that there are reasonable arguments against any IP.

  • by Omkar ( 618823 ) on Saturday February 15, 2003 @03:33AM (#5307818) Homepage Journal
    Everyone seems to be saying the same thing, but no major party seems to notice. You could just say they're in bed with business, or you could say that people aren't vocal enough about this issue.
    • by ShatteredDream ( 636520 ) on Saturday February 15, 2003 @10:07AM (#5308500) Homepage
      Many of our founders felt that lawyers shouldn't be allowed to serve in Congress or as the President because it'd be a conflict of interest. Afterall, if a lawyer can vote on the law, they can essentially vote themselves into a lucrative occupation at everyone else's expense.
      • Er, like who? Thomas Jefferson, for example, had a lifelong career as a lawyer (which he hated, interestingly) before holding various offices leading up to president. He was one of the most respected of the Founding Fathers and one of the most loved Presidents of all time. I have trouble believing there were many people arguing that he should not have been president, with the exception of the Federalists.
  • Bah. (Score:1, Insightful)

    by Anonymous Coward
    Everyone knows everything belongs to the corporations now. There's no such thing as individuality anymore. It's only a matter of time before this open source thing is snuffed out by one megacorp or another for violating IP regulations put in by some special interest group trying to monopolize the market in their favor and protect their own asses in search of the almighty dollar.

    Just watch. Intellectual property will be the first to go. Then personal property, then private property. All land and all items will be owned by an oligarchy of megacorps, and most if not all personal freedoms will not even be a memory, as revisionist history will be rewritten to make the times we have now seem like the dark ages. Dissidents will be jailed and executed. Freedom will be a thing of the past. The country will OWN you, and you will be a slave to your corporate government.
  • Lawyer Fodder (Score:5, Insightful)

    by anubi ( 640541 ) on Saturday February 15, 2003 @03:39AM (#5307832) Journal
    After reading the article on Watt and his steam engine, I am even more convinced that most of this patenting process is mostly contrived to feed lawyers.

    Does this really protect the individual who actually *invented* something or protect the ones who say they have the rights to it and have the resources to protect it.

    The post before mine recognizing Newton/Leibnitz and the possiblilty of "patenting" calculus drives the point home.

    This seems to me just to be another excuse not to work. My whole country seems to be doing this. It seems everyone is out not to produce anything per se, but to tie up anybody trying to do anything and exact a fee. Somehow this system passes as "free enterprise".

    Now, if the patent protection lasted for seven years or so, I would consider it much more appropriate. That way one could profit during the market window, but not tie the works up in perpetuity.

    • Your comments are outrageous.

      I am a patent attorney, and I am dismayed by the anti-lawyer comments this thread has generated. "Contrived to feed lawyers"???!!! HOW DARE YOU!!!

      The comments I've read seem to divide humans into two broad groups, lawyers and people. Hey, I'm a person too! In fact, most patent attorneys I know are neither evil nor interesting. Ever see a prime time drama about PATENT lawyers?? Damn right!

      I wish I knew where to start refuting all this negativity, but I haven't the foggiest. Just because you're right doesn't make it hurt any less.

      Won't anybody give a poor lawyer a break?
    • by kfg ( 145172 ) on Saturday February 15, 2003 @08:27AM (#5308300)
      Seldon was a lawyer who patented the automobile. He didn't build one, he never even so much as understood them, but he understood that sooner or later someone was going invent the thing, and if *he* already held the patent the actual inventor would either owe him a mint or simply be forced out of business.

      So he filed a patent on the *idea,* and got it.

      The fight between him and Henry Ford is one of the great sagas of intellectual property dispute in any nation. The patent was eventually broken, but not until after many, many years of courtroom fighting had passed, and millions of dollars such fighting takes to wage had passed from the hands of innovators into the hands of lawyers.

      The Wright Bros. invented flight. Then they made sure that America became the absolute *last* in aero technology through patent fights. By the time we entered WWI, hardly more than a decade after that first flight at Kitty Hawk, America had to license aero technology from Europe in order to be competitive in the military aeronautics.

      The Europeans either outright ignored the Wright Bros. patents, or found work arounds they could claim didn't violate them.

      KFG
      • The Europeans either outright ignored the Wright Bros. patents, or found work arounds they could claim didn't violate them

        No shit. However if the latter is true, then one must question why no American aviation company was able to work around said patents.
        • The American companies had to work in American courts. Claims and injunctions were a daily ritual.

          European companies got to test the validity of their work arounds in *European* courts, which is also where the Wright Bros. would have to file.

          Makes a big difference, especially in a time when war was a nearly a foregone conclusion, let alone after the war started, at which time all bets were off and all courts and civil law were entirely irrelevant.

          KFG
  • It's not just IP (Score:5, Insightful)

    by Boss, Pointy Haired ( 537010 ) on Saturday February 15, 2003 @03:44AM (#5307839)
    The United States has developed a litigation culture in many aspects of everyday life.
  • Marconi vs Tesla (Score:5, Interesting)

    by NigelJohnstone ( 242811 ) on Saturday February 15, 2003 @03:48AM (#5307851)

    Read this:

    PBS, Who invented Radio? [pbs.org]

    Its about how Tesla filed for patent on the radio in 1897, Marconi applied for his patent in 1900.

    Marconi's patents were thrown out at first. Marconi became rich and powerful, then Tesla's patents were thrown out in place of Marconi's.

    So you end up with a market in which the patent owner isn't the inventor and the whole purpose of patents - to reward the inventor, is turned on its head.

    You can see the same pattern happening in software patents and the constant requests on Slashdot for prior art.

  • by Anonymous Coward
    Anything to draw attention to the IP problem.

    But it would be more efficient to go after corruption. It's the root cause of failure for systems other than the IP system. Also, if you don't go after general corruption /first/, your worl is that much harder, since the corrupt people can change the rules of the game while your solving some far off symptom.

    You remove the top of a wart, and its roots will bring forth another wart. Over and over again. Eventually, you have to go through some trouble and dig out the roots before the area can finally heal properly.

    The whole difficulty of corruption in government is they write the rules of the game. And as you follow the rules of the game to eliminate corruption, you might find some difficulty.

    I'm still counting on the Enron anamolies to bring about some change. Sooner or later people will have to realize this is not currently a society where everyone plays by the same set of rules.

    Seems a weakened effort for people to run around trying correct various symptoms of the disease when they might make a more powerful and unified stance against the root cause of many of the problems. The corruption. Shouldn't be to hard to find a govt sector to begin with here in the US. Just pick..anywhere.

    • Exactly right. Enron did its damage using dizzying complexity [yahoo.com], using the incomprehensable federal tax code (how many of you fellow Americans blindly punch your numbers into TurboTax and hope for the best?) to their advantage. Give the tax code a radical lawyerectomy [flattax.gov] and you'll wipe out a huge chunk of corporate and political corruption (corporations "contribute" to politicians to write advantageous lines into the current code). Corporations can't buy favors that Congress isn't selling.

      Ending the double-tax on dividends will have a positive (though lesser) effect too: dividend payouts force discipline (can't fake cold hard cash). Plus it'll make it easier to raise capital with equity instead of debt, which will be a big help to manufacturers, which will be a big help to my home state of Michigan. One very smart thing: the double-tax is only dropped on income that was taxed to begin with. Play Enron games and tax shelter your income and ending the double-tax does you no good at all.

      Fix the above two and IP laws become a much more exposed target for change. Technically the order they're tackled in doesn't matter, but I think changing IP laws will be the hardest (hardly anyone deals with IP laws directly but everyone deals with the tax code), so from a practical perspective we should deal with the tax code induced corruption first.
  • by NZheretic ( 23872 ) on Saturday February 15, 2003 @03:51AM (#5307859) Homepage Journal
    last posted back in October [slashdot.org], but IMO still of relevance to the topic...

    From The Relevance of Adam Smith [frb.org] by Robert L. Hetzel.
    With added commentary by yours truly...

    MONOPOLY AND GOVERNMENT SUBSIDIES: The principal theme set forth in The Wealth of Nations is that a country most effectively promotes its own wealth by providing a framework of laws that leaves individuals free to pursue the interest they have in their own economic betterment. This self-interest motivates individuals? propensity to truck, barter, and exchange one thing for another and thereby leads them to meet the needs of others through voluntary cooperation in the market place:

    ...man has almost constant occasion for the help of his brethren, and it is in vain for him to expect it from their benevolence only. He will be more likely to prevail if he can interest their self-love in his favour, and shew them that it is for their own advantage to do for him what he requires of them. Whoever offers to another a bargain of any kind, proposes to do this. Give me that which I want, and you shall have this which you want, is the meaning of every such offer; and it is in this manner that we obtain from one another the far greater part of those good offices which we stand in need of. It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages. (p. 14)

    Everyone realises and acknowledges that Microsoft is a business, there to make a profit to share with it's marjor stakeholders, from it's shareholders to it's employees. However ...
    Smith also argues that the harmony between private goals and larger socially desirable goals promoted by voluntary cooperation between individuals in the market place is interfered with by monopoly and government subsidies. In contrast to competition, monopoly and government subsidies cause individuals to devote either too few or too many resources to particular markets:



    ....the private interests and passions of individuals naturally dispose them to turn their stock towards the employments which in ordinary cases are most advantageous to the society. But if from this natural preference they should turn too much of it towards those employments, the fall of profit in them and the rise of it in all others immediately dispose them to alter this faulty distribution. Without any intervention of law, therefore, the private interests and passions of men naturally lead to divide and distribute the stock of every society, among all the different employments carried on in it, as nearly as possible in the proportion which is most agreeable to the interest of the whole society.

    All the different regulations of the mercantile system, necessarily derange more or less this natural and most advantageous distribution of stock.
    (pp. 594-5)
    Every derangement of the natural distribution of stock is necessarily hurtful to the society in which it takes place; whether it be by repelling from a particular trade the stock which would otherwise go to it, or by attracting towards a particular trade that which would not otherwise come to it. (p. 597)

    .... sometimes, because of the overiding profit motive, the end consumer can be put at a disadvantage, and the natural model can become unbalanced. This often happens in tha case of several types of monopoly...
    Smith describes the actions of monopolists as follows:


    The monopolists, by keeping the market constantly under-stocked, by never fully supplying the effectual demand, sell their commodities much above the natural price, and raise their emoluments, whether they consist in wages or profit, greatly above their natural rate. (p. 61)

    The natural price is the lowest which the sellers can commonly afford to take, and at the same time continue their business. (p. 61) Today we would use the word competitive for natural. The effectual demand is the demand of those who are willing to pay the natural price of the commodity. (p. 56) Monopoly, as well as a governmentally subsidized activity, contrasts with a competitive market where a commodity is...sold precisely for what it is worth, or for what it really costs the person who brings it to market. (p. 55)
    The Wealth of Nations contains three general kinds of criticism of monopolies. The first is that the higher prices in a monopolized market reduce the welfare of consumers:


    If...capital is divided between two different grocers, their competition will tend to make both of them sell cheaper, than if it were in the hands of one only; and if it were divided among twenty, their competition would be just so much the greater, and the chance of their combining together, in order to raise the price, just so much the less. Their competition might perhaps ruin some of themselves; but to take care of this is the business of the parties concerned, and it may safely be trusted to their discretion. It can never hurt either the consumer, or the producer; on the contrary, it must tend to make the retailers both sell cheaper and buy dearer, than if the whole trade was monopolized by one or two persons.
    (pp. 342-3)
    In every country it always is and must be the interest of the great body of the people to buy whatever they want of those who sell it cheapest. The proposition is so very manifest, that it seems ridiculous to take any pains to prove it; nor could it ever have been called in question, had not the interest sophistry of merchants and manufacturers confounded the common sense of mankind. Their interest is, in this respect, directly opposite to that of the great body of the people. As it is the interest of the freemen of a corporation to hinder the rest of the inhabitants from employing any workmen but themselves, so it is the interest of the merchants and manufacturers of every country to secure to themselves the monopoly of the home market. (p. 461)

    .... like deals made between vendors to set prices, which RAND "reasonable" licensing systems effectively does.
    The second criticism of monopoly is that it engenders inefficient management:


    Monopoly...is a great enemy to good management, which can never be universally established but in consequence of that free and universal competition which forces everybody to have recourse to it for the sake of self-defence. (p. 147)

    For example, Microsoft's Internet Explorer containscurrently 20 unpatched vulnerabilities [pivx.com] , a disproportionately high number in comparison to all the other browers on the market today. Also, because of a general disregard for security in the past, many of those same vulnerabilities are exploitable though other Microsoft applications.
    The third criticism of monopoly is that it is inequitable because it increases arbitrarily the inequality in individuals? incomes:


    ...The policy of Europe occasions a very important inequality in the whole of the advantages and disadvantages of the different employments of labour and stock, by restraining the competition in some employments to a smaller number than might otherwise be disposed to enter into them. (pp. 118-19)

    And there is many a CIO discovering that the new Microsoft enterprise licensing agreement is far more expensive than before.

    Monopoly has always been a contentious issue in debates on public policy in the United States. It is interesting to examine the way in which the ideas of Smith appear in current debates over monopoly. In general, proponents of government intervention in the market place argue that monopoly is endemic in capitalism and that its elimination requires significant intervention by the government in the market place. An opposing group argues that free markets effectively restrain monopoly power and that it is in fact government intervention in the market place that is chiefly responsible for monopoly. The first group assumes that large size, fewness of firms, and operation over an extensive geographic area automatically imply monopoly power and thus supports its position by citing the existence of industries dominated by a few large firms and the existence of multinational corporations. The opposing group supports its position by trying to show that where monopoly power exists it is made possible by particular governmental actions, e.g., in the United States by marketing orders that fix the price of milk above what it would be otherwise, or FCC regulations restricting the growth of cable TV, thereby preventing competition with the established networks.

    The view of the world suggested in The Wealth of Nations is that monopoly power cannot persist without the assistance of government. The specific examples of monopoly that Adam Smith attacked required the police power of the state for their maintenance. These monopolies were of three kinds. One kind of monopoly depended upon the mercantilistic system of laws which England used to monopolize trade with its colonies: Monopoly of one kind or another, indeed, seems to be the sole engine of the mercantile system. (p. 595) Another kind arose from the monopoly power granted guilds (referred to by Smith as corporations), which allowed them exclusive rights to produce a given commodity:

    The exclusive privilege of an incorporated trade necessarily restrains the competition, in the town where it is established, to those who are free of the trade. To have served an apprenticeship in the town, under a master properly qualified, is commonly the necessary requisite for obtaining this freedom. The bye-laws of the corporation regulate sometimes the number of apprentices which any master is allowed to have, and almost always the number of years which each apprentice is obliged to serve. The intention of both regulations is to restrain the competition to a much smaller number than might otherwise be disposed to enter into the trade. The limitation of the number of apprentices restrains it directly. A long term of apprenticeship restrains it more indirectly, but as effectually, by increasing the expence of education. (p. 119)
    The government of towns corporate was altogether in the hands of traders and artificers; and it was the manifest interest of every particular class of them, to prevent the market from being overstocked, as they commonly express it, with their own particular species of industry; which is in reality to keep it always understocked. (p. 124)

    A final kind of monopoly depended upon tariffs and quotas that prevented foreign producers from competing with domestic producers:

    The superiority which the industry of the towns has every-where in Europe over that of the country, is not altogether owing to corporations and corporation laws. It is supported by many other regulations. The high duties upon foreign manufactures and upon all goods imported by alien merchants, all tend to the same purpose. Corporation laws enable the inhabitants of towns to raise their prices, without fearing to be under-sold by the free competition of their own countrymen. Those other regulations secure them equally against that of foreigners. (p. 127)

    Competitive markets restrain monopoly because the above-average profits associated with the exercise of monopoly power attract new producers who increase output and thereby lower prices:

    When by an increase in the effectual demand, the market price of some particular commodity happens to rise a good deal above the natural price, those who employ their stocks in supplying that market are generally careful to conceal this change. If it was commonly known, their great profit would tempt so many new rivals to employ their stocks in the same way, that, the effectual demand being fully supplied, the market price would soon be reduced to the natural price.... Secrets of this kind, however, it must be acknowledged, can seldom be long kept; and the extraordinary profit can last very little longer than they are kept. (p. 60)

    The next section is very IMPORTANT.
    Monopolists can preserve their favorable position only if the government prevents potential competitors from entering the monopolized activity:



    The exclusive privileges of corporations, statutes of apprenticeship, and all those laws which restrain, in particular employments, the competition to a smaller number than might otherwise go into them, have the same tendency...They...may frequently, for ages together, and in whole classes of employments, keep up the market price of particular commodities above the natural price, and maintain both the wages of the labour and the profits of the stock employed about them somewhat above their natural rate.

    Such enhancements of the market price may last as long as the regulations of police which give occasion to them.
    (pp. 61-2)

    In fact, the term "intellectual property" is a misnomer, a more correct term would be intellectual monopoly. Patents, Copyrights and even Trademarks are a government granted monopoly, they do not occur naturally. That does not mean that they are a bad thing per-say, but their use should be dictated by the benefit to socitety in general, with approprate limits so their use cannot be abused.
    These statutes give the power that the ol' Mercantile laws gave to those monopolies. There is no true effective choice in the market. Compainies like Microsoft are sustaining it's dominate position in the markerplace by using a state-constructed and granted monopoly, which gives Microsoft the monopoly over it's protocols [microsoft.com] , effectively just as restrictive as the East India Trading Company trading zone monopoly of the Orient.

    Free markets make the formation of monopoly difficult because monopoly requires the adherence of all actual and potential sellers in a market. Self-interest makes achievement of such adherence difficult because each seller has an incentive to undercut the monopoly price in order to increase his share of the market. Monopoly power is increased or made possible if enforced by the government. In the following passage Smith refers to the guilds, or corporations, of his day:



    An incorporation...makes the act of the majority binding upon the whole. In a free trade an effectual combination cannot be established but by the unanimous consent of every single trader, and it cannot last longer than every single trader continues of the same mind. The majority of a corporation can enact a bye-law with proper penalties, which will limit the competition more effectually and more durably than any voluntary combination whatever.
    (p. 129)


    Smith?s ideas appear in current public debate over monopoly. Advocates of deregulating the transportation and communications industries by eliminating or reducing the power of Federal regulatory agencies argue that these agencies promote monopoly by limiting the entry of new firms and by fixing prices for all producers. Government regulations enforced upon all firms in an industry have the effect of allowing producers to eliminate competition and to raise prices. At the same time, lack of competition reduces incentives for efficient production.
  • by Anonymous Coward
    Each country would reward advances in science and technology. The catch? No idea hogging (no patents). Just simple and honest work to improve our world.

    Of course, law suits would spring up as to who should receive the credit and the money, therefore, the only conclusion is to remove patenting. Lawyers would suffer (which is why they should be identified as the corrupt link).

    One thing is for certain, patents have nothing to do in the computer world. The younger generation knows this, and it is waiting for the current generation to wither and die.

    Why do "we" have to wait until the year 2525 to grasp this?
  • by jkheit ( 634306 ) on Saturday February 15, 2003 @04:09AM (#5307895)
    It's tough to take anything they say too seriously when they seem not to have bothered to do the most BASIC research and/or fact checking. They cite incorrect durations for both patents and copyrights. A rather impressive feat.

    Design patents have a term of 14 years. Utility patents have a term of 20 years from filing. They had it reverse. Also, the current term for copyright is the life of the author plus 70 years, not 50 years--this was changed several years ago (is the piece that old?)--and I believe one of the reasons Disney and others had an excuse to request extensions of copyright law (yea right to "harmonize" the old and new law/copyright term).

    That's in the first 4 pages of chapter 1. Perhaps they are typos and not indications of the intellectual rigor that went into the book.
  • by kscguru ( 551278 ) on Saturday February 15, 2003 @04:09AM (#5307896)
    The problem is that IP "regulation" is reactive instead of proactive. Two large companies want to merge, they have to get regulator approval beforehand. But if I want to own a piece of IP, I just claim it (copyright) or come up with an obscure description and pay a small fee (patent); I basically own it until someone proves I don't - the onus is on YOU to challenge MY ownership. And I can threaten all sorts of lawsuits until you succeed in that challenge. If I hold a patent that's "obvious", guess what - you've got to sue to break my monopoly.

    The solution I'd like to see, instead, would be the government taking a proactive stand. Instead of granting patents and waiting for the mess to sort itself out, I want the government to go out and bust patents. Presidents like to portray themselves as trustbusters; well, "patent cartels" are one large trust that's never been busted. If some technology covered by a patent becomes truly umbiquitous - that is, so widely used that the inventor has ALREADY recouped his R&D investment - I'd like to see the government force the patent into the public domain. Example: CD-ROMs... Philips hold the patent, and has been very generous with it. But the technology protected by that patent is SO widespread that any abuse of the CD-ROM patent would ruin the technology sector. Think of how much some companies (or the RIAA, to supress non-DRM formats) would pay to control that patent - the value is inconceivable.

    At this point, CD-ROM technology ceases to be a useful patent and starts to become something that the general public has a vital interest in... and here's the point where the government should "seize" the patent and turn the IP over to the public BEFORE the patent expires of its own accord. A widely used piece of IP (or any of the "obvious" patents we regularly complain about here on Slashdot) has passed the point where the inventors NEED a monopoly to protect their idea and has reached the point where the only purpose of that patent is profit at the expense of the public.

    Monopolies are useful, but powerful monopolies are not; patents are useful, but exploitable patents are not. The government has an active role in regulating all other monopolies; it needs to take an active role in regulating IP monopolies as well.

    • Example: CD-ROMs... Philips hold the patent, and has been very generous with it. But the technology protected by that patent is SO widespread that any abuse of the CD-ROM patent would ruin the technology sector. Think of how much some companies (or the RIAA, to supress non-DRM formats) would pay to control that patent - the value is inconceivable.

      Sorry, the CR-ROM is an example of the patent system working as designed. If the CD-ROM had already been widespread when philips applied for the patent, you would have a point.

  • by rolfwind ( 528248 ) on Saturday February 15, 2003 @04:30AM (#5307935)
    is where do we draw the line?

    Amazon's one click nonsense, how was this even patentable? In essense that idea was click a virtual button, and it does something, does that sound innovative? No step in that process was innovative, Amazon, like a million other companies keeps a cookie in your browser, and you're shipping/billing info in their file/database, what was new with that? And yet here we are, patenting these simpleton ideas a retarded chimpanzee could have come up with.

    Software techniques should not be patentable on the simple basis that the staff on the USPTO simply seem incompetent, due to no fault of their own, to designate what truly deserves a patent and what is merely an old idea in a new dress. The system is set up by lawyers for lawyers, in the end tilted toward corporations with cash and IP agreements with each other, so the small software development houses can't get in.

    Really, Software should not be patentable, at the most, copyrightable in certain aspects, the name, logos, and protected in regards that nobody should be able to legally take the binary and resell it as their own.

    But that is about it.... otherwise all you are asking in the future with this so-called 'ip property' is a constant headache with unscrupulous people who are smart enough to patent an idea that has been around for ages and ask enough so you pay them, but don't ask so much that you fight them in court.
  • by ctellefsen ( 625088 ) on Saturday February 15, 2003 @04:43AM (#5307952)
    A patent is not a right one person gets when he patents something, it is a right everyone else loses. If Amazon had not patented the obvious one-click order, everyone could do it. I think that taking away the right of every person (save one) in the entire world to do some action is a very serious thing to do.

    Therefore, patent granting should be very restrictive - not like today, when you can patent obvious bits of code, obvious business processes, DNA sequences, the wheel, swings, whatever.

    When the patent is obvious, patenting is theft - taking from all and giving to one.
  • I realize that some people want to make money off the work and time put into certain ideas, but to say that patenting IP stifles some growth of areas and whatnot, well, that's just obvious.

    I feel like I should be moderating myself down, but that just could not be less of news.
  • ...does the US government own large amounts of its own IP? Are they locking down on this stuff in self-protection? Is the gov't in a conflict of interest in its own laws?

    Kickstart

  • by Erpo ( 237853 ) on Saturday February 15, 2003 @04:57AM (#5307971)
    Chapter 1: The idea of "intellectual property" is broken down into two components.

    1. Right of sale. If someone has an idea, that person can sell a copy of it to someone else. If someone makes a copy of it and the originator hasn't agreed to sell it, legal action can be taken. Example: An aspiring screenwriter sends a copy of his latest script to a famous director. The director likes it so much that he makes a movie out of it -- without having first acquired the right to use the script's contents. The script's author could sue the director in this case.

    2. Intellectual monopoly. The originator of information can decide what others can do with that information once sold. Shrinkwrap software licenses/EULAs are a great example of this.

    They argue that right of sale is a good thing because it gives creative people an incentive to produce and some amount of legal protection. They also argue that while intellectual monopoly gives them even more incentive to produce, controlling what people do with information after they have bought it (including making copies for other people) cannot be done without terrible social consequences:

    Take the case of slavery. Why should people not be allowed to sign private contracts binding them to slavery? In fact, economists have consistently argued against slavery -- during the 19th century David Ricardo and John Stuart Mill engaged in a heater public debate with literary luminaries such as Charles Dickens -- with the enconomists opposing slavery, and the literary giants arguing in favor. The fact is that our labor cannot be separated from ourselves. For someone else to own our labor requires them to engage in intrusive and costly supervision. Such transaction costs are socially damaging as they imply violation of privacy and essential civil liberties. Hence they are commonly rejected on economic, not just moral, grounds. Moreover, there is no economic reason to allow slavery. With well functioning markets, renting labor is a good substitute for owning it. And so we allow the rental of labor, but not the permanant sale.
    For intellectual property we are proposing the reverse: allowing the permanent sale, but not rental. For with intellectual property, posession belongs to the buyer and not to the seller. If you sell me an idea, I now have that idea embodied either in me or an object I own. For you to control the idea requires intrusive and costly supervision. Similarly if you sell me a book, a CD or a computer file. In each case, I have physical control of the item, and you can control its use only through intrusive measures.


    I haven't read all of chapter 2 yet, but I'm trying to compromise between providing a decent summary of what's obviously a very insightful text in the hope that people will read it, and not getting buried on the second page where nobody will see the post.

    From what I've read so far, this is really good stuff.
  • by Garen ( 246649 ) on Saturday February 15, 2003 @05:51AM (#5308018)
    The title of this story completely misconstrues the author's position. The paper is titled "The Case Against Intellectual Monopoly " Not property .
  • by minkwe ( 222331 ) on Saturday February 15, 2003 @06:47AM (#5308105) Journal
    Software patents should be abolished. If you have discovered a cool algorithm that enables your programs to run 100x faster than a competitors, keep it secret and benefit from it alone (Closed Source). Most companies do that already. What really gets to me is the fact that they try to prevent others from making use of an independently developed but similar technique. Just because you thought of it first does not give you the right to reduce the dimensions of everyone else's thought.

    The only benefit you get should be the time-advantage you have in thinking about it first. Publishing it (Open Source) means you accept to forego the advantage, for common good.

    Most people who believe in software patents, do so because of a complex. They can't stand the fact that most people are as intelligent or more so than they are. Since they know that someone else will have that idea, they try to prevent that by patenting it. They preach how patents are required for innovation -- bullsh*t!

    That is what destroys inovation IMHO.
    • Nope. As soon as it hits the market, it can be reverse engineered, and another company can copy it. Without legal protection, there's no real incentive to spend R&D working on *anything* since a competitor can just reverse engineer. And, because that competitor didn't have to spend money on R&D, they'll be able to kill the original company on price. Thus, there's zero incentive for R&D if you know that you can be legally copied as soon as you hit the marketplace.
  • by thejk ( 575418 ) on Saturday February 15, 2003 @06:52AM (#5308126) Homepage

    I Am Not An Economist, so the second chapter was challenging for me, I must confess. However, I think I get the gist of the paper's argument. And, if I do, I admit I am (pleasantly) shocked by its "innovative" argument, which opened my eyes somewhat. Of particular interest to the slashdot audience, I believe, is probably the section titled, "The First-Mover Advantage" on pages 24-28 of the second chapter. These first-mover advantages, which the current patent law intends to secure through the granting of temporary monopoly to innovators, all apply in the absence of the IP law.

    • the de facto monopoly of the innovation for a time -- at least until reprodcution by competition
    • the economic advantage of being the only one to anticipate the impact of the innovation, e.g. stock trade, captial investment, etc.
    • the consumers' preference for the original work
    • the sale of advertising space in the innovation, e.g. Linus Torvalds and Transmeta, the Bond movies, etc.

    In other words, absent the present incentive model of temporary monopoly to an innovation, innovators will continue to innovate, given that they can recoup the "sunken cost" of initial research. Am I convinced that the above conditions exist for innovators as "first-movers"? Yes. And, as the paper points out, there might be other ingenious ways to take advantage of new ideas in the absence of the IP law.

    However, I do see the abolition of the current IP law having a radical impact on the way the society functions. First off, product-placement in "copyright" works will increase dramatically, until indeed another innovative method of extracting the initial investment cost is found. Imagine each and every single song you hear on the radio having some kind of reference to Pepsi or Marlboro. What a trade-off! Secondly, related to the first point, the advertising industry will come to exert an even greater control over musicians, software programmers, writers than they do now. In other words, if you want to make money off your work, you better do what the advertisers say. Ugh, Gator comes to mind here...

    I was going to go on about the fantasy list of impacts the abolition of the IP law would have on our world, but I just remembered a question that I had and the paper didn't answer. So I will just finish this post by posing that question and, hopefully, engage some of you in a debate of sort about it as well. My question is this: in the entertainment industry (publishing, music, film, etc.) wouldn't the initial impulse to control the distribution/reproduction channel be too great to ignore? This is happening to some extent already (AOL Time, invasive P2P software) and, were the proposal of the paper to be adopted, we may see the privatization/regulation of the Internet along the line of what China is doing or the cable TV industry. This, to me, would be equally bad as (if not even worse than) the ridiculuous extension of copyright to Disney.

    Man, I haven't been this excited about the IP law in a while. I didn't really think of a way to get around the economic incentive argument for the IP law before tonight...

  • Radio was invented 5 years before the war, but before all the companies that held seperate patents were commanded by the government to give them so the war could be fought... Basically technology was at a standstill.

    This is why I like Linux, without free code sharing, I'd be unable to create a 3d MMORPG to compete with the big dogs. Crystalspace has got me up and running on a 3d engine, all I need to do is add new networking code, some animations, balance, some levels, and a story.
  • by rollingcalf ( 605357 ) on Saturday February 15, 2003 @09:32AM (#5308404)
    Software patents should be eliminated because they are just plain unnnecessary for promoting innovation. There isn't any software out there that would not have been developed if software patents didn't exist. Most software produced in the world today isn't protected by patents (although they may unknowingly infringe on somebody else's patent). Of those that are patented, either the original developers would have created it anyway, or somebody else would have independently created an equivalent. The vast majority of software patents already have been accidentally implemented by others, who created their equivalent implementations without the incentive of owning a patent or the knowledge of somebody else's existing one.

    The same thing applies to patenting business processes - just plain unnecessary. A business won't decide to abstain from an innovative business model because of the lack of an ability to use patents to prevent competitors from using it. Quite the opposite - once having conceived the idea, they will be in a haste to implement it precisely because they fear their competitors may also do it and they don't want to get left behind. A business model or process that would be unprofitable without patent protection isn't a truly innovative one. Only bad ones and obvious ones have a need for patent protection to make them profitable, and the truly innovative ones would be implemented anyway.

    The purpose of patents is to encourage or accelerate the innovation that would not have occurred if patents didn't exist. Software and business patents don't fit that mold because whatever the patents implement would have been done anyway, either by the original creator or soon afterwards by someone else.
  • Reason magazine is the official publication of the Reason Foundation, essentially a Libertarian think tank. The article isn't online [reason.com] yet, but it will be sometime within the next month.

    FWIW, even as a Libertarian who is distressed by the way copyrights and patents are abused [krose.org], I don't buy their conclusions for (say) the pharmaceutical industry, in which the indivisibility of research cost, the practically zero marginal cost of production, and the commoditized nature of cures for a particular illness make a stronger argument for patents and artificial monopoly as incentive for innovation than, say, copyright does as incentive for the next Britney Spears album.
    • I don't buy their conclusions for (say) the pharmaceutical industry, in which the indivisibility of research cost, the practically zero marginal cost of production, and the commoditized nature of cures for a particular illness make a stronger argument for patents and artificial monopoly as incentive for innovation

      Pharmaceutical patnets are the worst. The most evil example I could think of was when corporate executives wrote an article to the newspaper that effectively said they had no incentive to innovate unless they had the right to lock out millions of people dying of AIDS in Africa. Other examples include the antibotic - Cipiro where a generic was being made in India for I think 10 cents a pill - and was offered to the USA during the worst of the Anthrax chrises, but was rebuffed for patent reasons. Not to consider all the research and development of natural, alternative, or other cures that involved the use of medicines with expired patents that was outright blackballed by industry giants in favor of more dangerous drugs that could be patented. And don't forget the millions of old people who are litterally "reamed" over medicines that they can't afford, but if they try to order generic's or non-generics that are sold at a cheaper price outside the country they could end up with a fine I think of $250,000. The real question, is how many people are we willing to let suffer and die in the name pharmaceutical patents? For all the people that are needlessly suffering and dying I would expect amazing and overwhelming justifications, but have rather gotten nothing but crap.

      • The disadvantages inherent in denying lots of people a treatment or cure for 12 years (the typical amount of time a medical patent lasts after the treatment is available) is justified by the fact that, without these monopoly protections, no one would bother spending money to research or develop the cures in the first case.

        Let's say 5,000 people/year die from a particular disease. Under the current system, once a cure is developed, 5,000 * 12 = 60,000 people die before the price drops. Without patents, 5,000 * forever = infinite people die before the cure is even found. (This is a bit simplistic in assuming that no one will ever find the cure. But I don't think it's unrealistic to replace 12 by, say, 100 or 200, and still end up with orders of magnitude more deaths.)

        Yes, there are universities and other not-for-profit research centers, but (as is typical with free markets) the commercial pharmaceutical industry is much more efficient at finding those things that people really want.
        • No, I do get it. As a libertarian I am very well aware that just because the government calls somthing a right does not mean that it is. It wasn't true in the 1850's with slavery as a property right, and it's not true with patents or copyrights today. As a libertarian I understand that property rights exist as a means to deal with the fact that not everybody can use something at the same time, implying markets, and implying that people organize in the form of government to secure those rights. With patents and copyrights, this philosophy becomes bogus.

          What you are saying is that without patnets nobody would have an incentive to put the money and effort into say, a cure for AIDS. That is outrageous. There is plenty of incentive for people to organize economically to stop diesase and the like without an artifical government monopoly. In fact, from newspapers I've gleamed - patents are actually intefering with a cure for AIDS as companies fight bitterly over conflicting patents, and researchers are forbidden to share critical information with other researchers, for fear of giving competitors the lead on a patnet claim.
  • by Paul Fernhout ( 109597 ) on Saturday February 15, 2003 @10:27AM (#5308563) Homepage

    This AEI-Brookings Joint Center for Regulatory Studies article by Mark S. Nadel is also relevant to showing the case against intellectual property.

    http://www.aei.brookings.org/publications/abstract .php?pid=302 [brookings.org]

    From the abstract: This article questions the economic justification for copyright laws prohibition against unauthorized copying. Building on the thesis of Stephen Breyers 1970 Harvard Law Review article, The Uneasy Case for Copyright, it contends that not only may copyright laws prohibition against unauthorized copying (17 U.S.C. 106) not be necessary to stimulate an optimal level of new creations, but that 106 appears to have a net negative effect on such output! It observes that the higher revenues that 106 generates for popular creations are, in the lottery-like entertainment markets, generally used for promotional efforts (rent seeking), and that such marketing crowds out many borderline creations. The article also identifies and explains how new technologies and social norms provide many viable business models for financing new creations relying on only a heavily abridged version of 106. Hence, the article questions whether the current 106 could survive the intermediate scrutiny standards of the First Amendment, given the lack of evidence that the benefits of 106 exceed its costs.

    This is a fantastic paper. It is full of references and numbers a lot of hard work and scholarship obviously went into it.

    For support for eliminating copyrights or greatly reducing their terms, see Richard Stallman, especially here:
    http://www.memes.net/index.php3?request=displaypag e&NodeID=650 [memes.net]

    and also Brian Martin's essay "Against intellectual property" (part of a large book -- _Information Liberation_)
    http://www.uow.edu.au/arts/sts/bmartin/pubs/98il/i l03.html [uow.edu.au]

    You can also see lots of other ongoing discussion here on Lawrence Lessig's blog here http://cyberlaw.stanford.edu/lessig/blog/ [stanford.edu] and in his two books.

    Here is a paper by an intellectual property lawyer against the current system: http://emoglen.law.columbia.edu/publications/anarc hism.html [columbia.edu]

    Here are some of my own comments on the situation: http://cyberlaw.stanford.edu/mt/mt-comments.cgi?en try_id=898 [stanford.edu] http://cyberlaw.stanford.edu/mt/mt-comments.cgi?en try_id=889 [stanford.edu]

  • I can forsee some consequences of doing away with intellectual monopoly. First the "thing" which would have value for the investors would no longer be intellectual "property" but the means of production, e.g. having happy artists or scientist in your employ or having the capital to build a huge new factory or having the connections to book a stadium for a live concert.

    Second, the manufacturers or publishers who would be able to undercut everyone elses price in the drive toward marginal pricing would the ones with the most efficient manufacturing and distribution system. This would tend to be the largest processing plants in better connected areas and with a highly educated but cheap workforce available. Consolidation would occur similar to how small hardware stores folded when a Home Depot is built nearby and the area affected by the consolidation would be determined by that manufacturers distribution network.

    From the second chapter: If, in fact, demand is elastic, then price falling to zero implies (because so many units are sold) revenue increasing to infinity. So in this case, improved reproduction technology would increase rather than decrease the rents accruing to the innovator.

    Excuse me, Levine and Boldrin, I haven't gone over all your math but I think maybe you need to bone up on L'Hopitals Rule. Additionally, that last statement there brings up an interesting point. They even stated that, 'conventional wisdom would be right in ignoring economic value of being first if technological advances were such that the time one had to wait to purchase the good at a near zero price became negligible.' So take a look at recent advancements in nano-technology and consider the possibility that a few decades from now replicating an object might be as easy and commonplace as copying an mp3 file today. Should we change our IP laws just in time for the new paradigm to be useless?

  • IP = copyright of some form is good, abolishing that would lead to a lot of problems. IP patents = IM = Intellectual Monopoly, like software patents on the other hand, are very dubious. Particularly when the patent covers the only "reasonable" set of instructions to get from A to B (sometimes by being so broad there's no other way). Sometimes they just assume that the way exists, and sue anyone that try to implement the patent idea...

    Kjella

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