Attention Economy


Monday, October 24, 2016

Obsolete US Patent Regime is Hindering Innovation

Silly patents are harming American and global innovation and creating monopolies:
“That’s what’s going on now in the world of design patents, where the U.S. Supreme Court has suddenly been forced to confront the fact that century-old laws governing ownership of shapes, contours and curlicues are far out of step with modern life. Unless modernized quickly, these outmoded rules could empower a wave of opportunistic lawsuits that would suppress innovation.
The case at issue is Samsung Electronics Co. v. Apple. In 2011, Apple brought a patent lawsuit against Samsung, asserting that Samsung’s smartphones infringed upon Apple’s patents on three design elements: rounded corners, a bezel on the rim and a colorful, 16-icon grid. Odd as it may sound that anybody could claim ownership of something as ubiquitous as rounded corners, designs like that are patentable, and Apple was awarded $399 million in damages. That’s a significant fraction of Samsung’s total profits from smartphone sales”

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WSJ article on the flawed American patent system –
“The U.S. patent system has struggled to balance the goals of fostering innovation and reducing abusive litigation that can be costly to business.
Recent changes in the U.S. patent system have made it easier for companies with deep pockets to combat claims. Shipping & Transit has turned its sights on scores of small online retailers and logistics startups. It typically demands licensing fees of $25,000 to $45,000, amounts just small enough to discourage a legal battle, yet painful for businesses with only a few employees.”

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Related:
http://vivekjayakumar.blogspot.com/2016/04/do-patents-help-or-hinder-growth-and.html