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The Case Against Intellectual Property

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."

21 of 243 comments (clear)

  1. Thing thats bothered me about Software PAtents. by trotski · · Score: 4, Interesting

    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?

    --

    "Entropy is the bad-guy, and he is everywhere"
    1. Re:Thing thats bothered me about Software PAtents. by Gadzinka · · Score: 2, Interesting
      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
      --
      Bastard Operator From 193.219.28.162
    2. Re:Thing thats bothered me about Software PAtents. by Billly+Gates · · Score: 4, Interesting
      " 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.

    3. Re:Thing thats bothered me about Software PAtents. by Anonymous Coward · · Score: 3, Interesting

      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.

    4. Re:Thing thats bothered me about Software PAtents. by Anonymous Coward · · Score: 2, Interesting

      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!

    5. Re:Thing thats bothered me about Software PAtents. by Znork · · Score: 4, Interesting

      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.

  2. IP Goes too far by amigaluvr · · Score: 3, Interesting

    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

  3. Yes, current patent laws suck. by Omkar · · Score: 3, Interesting

    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.

  4. Prior Art by ausgnome · · Score: 2, Interesting

    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.

    --

    I had a pet once
  5. Re:Here we go again... by WolfWithoutAClause · · Score: 3, Interesting
    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.

    --

    -WolfWithoutAClause

    "Gravity is only a theory, not a fact!"
  6. Marconi vs Tesla by NigelJohnstone · · Score: 4, Interesting

    Read this:

    PBS, Who invented Radio?

    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.

  7. Let's twist the model. by Anonymous Coward · · Score: 2, Interesting

    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?

  8. Proactive IP regulation & Patent Busting by kscguru · · Score: 5, Interesting
    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.

    --

    A witty [sig] proves nothing. --Voltaire

  9. Re:OK, here's an alternative. by cpaluc · · Score: 3, Interesting

    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.

  10. Re:It's even worse now... by Anonymous Coward · · Score: 2, Interesting

    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?

  11. "the industry would be at a complete standstill" by NZheretic · · Score: 4, Interesting
    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 May 16, 1991

  12. First-mover advantage by thejk · · Score: 3, Interesting

    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...

    --
    The web is a dominatrix. Everywhere I turn, I see little buttons ordering me to Submit.
  13. Re:OK, here's an alternative. by Anonymous Coward · · Score: 1, Interesting
    which could undermine the future of the author putting out future books

    yeah, but that's assuming that the only reason authors create works is for the $$$. it aint so. if the author was a true artist then he/she'd publish purely for the sake of art. if the novel was held to be a work of art, poeple would go out of their way to buy it within ONE year.

    copyright's reason for existence is to encourage creativity. if copyright was lost, do you really think no-one would be creative? of course not. look at all the work licensed under the GPL. do the authors of those works do it for the $$$? no. and if you think software is different to novels; it isn't in the eyes of copyright.

    in a world without copyright, we might lose mega-music-marketing-multinationals and proprietary software companies but people will still publish stuff (and do, eg on the web) simply for art's sake. who cares if the record labels disappear, we can get our music from the web now (legitimately i mean). artists won't disappear. creativity will not diminish as much as the making of a buck on creativity.

    anyway, the question is where to strike the balance. the balance has swung too far against the public interest in favour of the RIAA/MPAA.

    why have laws that reward the RIAA/MPAA???

  14. Re:It's even worse now... by DarthWiggle · · Score: 2, Interesting

    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.)

  15. Or that both parties have too many lawyers by ShatteredDream · · Score: 4, Interesting

    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.

  16. Re:Practical? by st.+augustine · · Score: 2, Interesting

    What made the authors of patent law believe that this would be practical?

    In the early days of patents it would have been pretty easy to find and check every patent in the area you were working on; I'm sure the framers of the Constitution never expected the number of patents to grow geometrically. In the first 40 years of the US' history, only about 10,000 patents (give or take a few) were granted, but over the next 40 years, more like 100,000; and over the 40 years after that about 1 million.

    If the trend had kept going we'd be at over 100 million now, but (as all of us on /. know) the Patent Office can't keep up with the applications. Also, patents went out of fashion in mid-century (possibly due to public distrust of monopolies, as well as the depression) and didn't come back in until the US started to deal with real international competition in the 70s.

    --

    -- Some things are to be believed, though not susceptible to rational proof.