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Creating A Global Patent System

prostoalex writes "May issue of MIT Technology Review discussed the implications of a globalized patent system. For small inventors, it argues, the cost of globalizing the rights for their invention are just unbearable. For example, in Europe it costs about $7,000 per country to file a patent application. As an article bonus, some people might like to take a look at the list of the largest patent holders per industry in PDF format."

31 of 172 comments (clear)

  1. Yeah right by YeeHaW_Jelte · · Score: 5, Insightful

    With the States current attitude towards international law & agreements, I can't see any form of global patent law being created, except if the U.S. forces the rest of the world to agree with it in some economic or political way.

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    1. Re:Yeah right by tankdilla · · Score: 5, Funny

      Whatever country doesn't agree to global patent law must have weapons of mass destruction and will face consequences.

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    2. Re:Yeah right by Anonymous Coward · · Score: 3, Funny
      a treaty that would seriously undermine our economy

      In the Bushian America, GWB undermines your economy.

    3. Re:Yeah right by kisak · · Score: 3, Insightful
      except if the U.S. forces the rest of the world to agree with it in some economic or political way.
      The US does not have the power to to force any such thing on the world. Yes, the US has the most deadly military but most conflict cannot be solved with killing of a third world dictator.

      The only way to get such a international patent system would be through the UN and with diplomatic means. The Bush administration has shown itself to be less then adequate in diplomatic negotiation, thinking it can bribe (Turkey), threaten (France), lie (Powell security counsel), or play cool (N Korea) itself to get it the way it wants. All of the above tactics backfired and did not work.

      I guess the world has to wait for an administration that can be trusted to keep what it promises and not pull out of international treaties according to if it suits them or not, before any more break throughs can come on international cooperation.

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    4. Re:Yeah right by Eric+Ass+Raymond · · Score: 3, Insightful
      international court of justice (with special emphasis on the fact that the U.S. now has a law condoning it to attack the Netherlands if a U.S. citizen is taken prisoner by the court)

      I wonder why people insist that the US should join the international court of justice? A sovereign nation does what it wants and becomes a member of only those organizations it wants to. USA has no obligation to become a member of the international court of justice and as long as we're not a member state (for good reasons such as the lack of certain rights guaranteed by the US Constitution), we have every right to treat it as a hostile act to imprison an American and parade him/her in that court of justice.

      when they confirm the existence of the global warming phenomenon?

      They may have confirmed the existence of global warming, but there is absolutely no hard evidence that it is caused by geologically and climatologically insignifant human action.

      broad consensus in the international community

      Hot air. The fact remains that the action was taken without the blessings of the UN Security Council and explicitly against the wishes of one of its permanent members (Russia) - just like the war in Iraq.

      "Broad international consensus" is just like "public opinion": largely irrelevant (and for a good reason). It may affect the decision makers who have political careers to look after, but it cannot in any way be used to justify decisions or actions that go against the procedures of UN. If the public opinion is allowed to justify going against the will of UN, then UN itself has become irrelevant.

      In other words: you either accept UN as the authority in which case both Kosovo and Iraq were unjustified wars, or you accept that "public opinion" may override the authority of UN and that this makes UN irrelevant.

      You can't have it both ways.

      Dude, try watching something different than Fox News and CNN

      I'm an ex-pat and don't see FOX here in Belgium. I watch CNN, BBC, EuroNews on cable as well as the local news broadcasts. You really should not throw the stereotypes around so lightly - it makes you sound so... euro-trashy.

    5. Re:Yeah right by onion2k · · Score: 5, Informative

      Tell that to the major phamaceutical companies. US companies produce AIDs and cancer drugs at 30$ a day to the patient, and then Indian companies such as Cipla under cut them by making the same drugs for less than 1$ per day. Indian patent law states that drug patents only cover the production method, not the actual drug, so long as the Indian company figures out a new way of making it then its ok.

      But...

      If countries buy these generic drugs rather than the US equivalent they get threatened with trade sanctions. Its happened in Thailand, South Korea, Brazil, and many others. I doubt its a coincidence that Rumsfeld used to head up.. ooo.. a pharmaceutical company! There was a global treaty for cheap drugs put around by the WHO a little while ago. Every single country wanted to sign up... expect the USA, who veto'd it.

      America has too much power.

    6. Re:Yeah right by ratamacue · · Score: 4, Insightful

      Exactly. At the root of the issue, patent law is arbitrary. It's a complex, largely ambiguous system of law created and implemented entirely by government -- not a simple, "natural" law that would be inherently understood by human society and would be respected (or even conceived) with or without government.

      What does this mean? In short, there is no possible way that every country -- let alone every human being in the world -- could agree to this concept of "intellectual property". Therefore, the implementation of intellectual property requires a major initiation of force, the very thing it proposes to protect us against. Not only is the concept of IP itself questionable (many, like myself, would oppose it outright), but the implementation could take any one of literally millions of different forms. Who's right and who's wrong? There is no answer, there will never be an answer, and there never could be an answer.

      Like any law or set of laws that can't be agreed upon nearly unanimously, somebody will be screwed over in a big way. This is exactly why I advocate limited government -- beyond the core function of government (which is to protect the people against the initiation of force), every law is arbitrary to some degree, and necessarily screws over somebody at the expense of somebody else. IP does exactly that.

  2. Hmmm... by skermit · · Score: 4, Interesting

    I've read a couple articles on patents and where they're going in the past two weeks. One takes a look at all the patents given in the US that don't and can NEVER be produced because they are physically impossible. The second article dealt with how the US government is INCREASING costs for patent filings because there's too much of a backlog as is, and they need more of an incentive to process current patents and to, wait for it..., DISCOURAGE new patents. *sigh*

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  3. $7000 per European country.. by wfberg · · Score: 4, Informative

    Yes, the European Patent Office does not exist. Go away now!

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    1. Re:$7000 per European country.. by kogs · · Score: 5, Informative

      OK here are some real numbers for a US-originating European patent application with 20 pages of text and 20 claims (somewhat on the low side when compared with US practice but multiple dependencies are positively encouraged in Europe not penalised as in the USPTO)

      Filing: $2200
      Examination: $1800
      Designation fees* (all states): $800
      Dealing with objections by Examiner: $4000
      Maintenance fees (say): $2000
      Grant and validation:

      • United Kingdom: $300
      • Austria: $1700
      • Belgium: $900
      • Cyprus: $1700
      • Denmark: $3600
      • Finland: $3300
      • France: $2300
      • Germany: $2500
      • Greece: $2250
      • Ireland: $700
      • Italy: $2100
      • Latvia: $1600
      • Lithuania: $2100
      • Luxembourg: $700
      • Monaco: $750
      • Netherlands: $2300
      • Portugal: $2700
      • Romania: $1500
      • Slovenia: $2000
      • Spain: $2000
      • Sweden: $3800
      • Switzerland: $1000
      • Turkey: $1900
      Sub-Total: $43,700
      Official Grant + Printing Fees: $1500
      Grand Total: $56,000 (plus US patent attorney's time and mark up.

      Most of the validation costs are for translations and some countries appear low because they share a language with another country, e.g. French is used in France, Switzerland and Belgium

      If you are not a pharmaceutical company, you would probably be looking for patents in the UK, France, Germany and perhaps Scandinavian countries, Italy, Spain and the Netherlands. Assuming the UK, France and Germany would give a cost per country of about $5200 per country.

      * seven buys all states

  4. No thanks! by Anonymous Coward · · Score: 5, Insightful

    No thanks!

    Some countries still have a respectible Patent System in place. Why would they want to be polluted with some (many) of the ridiculous Patents granted in the USA.

  5. Only global patents make sense by Eric+Ass+Raymond · · Score: 4, Interesting
    What is the point of patenting something if the patent is not global?

    Patent something domestically and someone in a country with cheap labour will copy your idea and outproduce you.

    1. Re:Only global patents make sense by tanveer1979 · · Score: 4, Insightful
      Patent something domestically and someone in a country with cheap labour will copy your idea and outproduce you.

      American companies have been patenting commonly grown stuff and known medicines in poor eastern countries. If global patents were in place then lots of people will lose their right to practice something which their forefathers have done since ages.

      What stops an american corporate to patent a traditional chinese or indian mixture of herbs as its own creation. Most small scale industries now dont have the idea that they are violating patent.

      Such stuff has happened before.
      Examples
      Texamati : A variety of rice which is same as basmati which has been grown in india since more than 300 years
      Neem extracts : Historical texts have explained the usage since 2000BC
      Tulsi : Patent pending, used as a releif from flu and common cold since thousands of years.

      No thanks we dont want american patents to be slapped on us, unless the American patent office takes full responsibility for any bogus patents filed and gives compensation. Neem patent was defeated after Indian Govt intervention, and even after presenting the office with historical docs, it took more than a year.
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  6. $7,000 may be expensive, but ... by Anonymous Coward · · Score: 3, Insightful

    ... surely you would only patent something you thought would reap you many times that amount.

    And the price barrier to getting a patent (versus the plain old bureaucratic barriers) discourages companies / people from patenting silly things, where a patent would be a nuisance to the rest of society.

    1. Re:$7,000 may be expensive, but ... by windows · · Score: 4, Insightful

      The solution isn't to make it difficult to patent stupid things by making the price prohibitively high. The solution is for the patent offices to do their homework and actually review prior patents, get a clue as to what they're granting patents to, and make better attempts to verify that there isn't prior art out there already. Raising the price of the patents doesn't screw over the large companies. To them, $7,000 is a drop in the bucket. It hurts the small companies and independent inventors that don't have the money just sitting around. If the patent system were globalized and one large patent office replaced the ones for every country, and each country helped fund it, it might be possible to have a reasonable price and still be able to have the money for the office to do their homework and check up on things before granting patents.

  7. There is a European Patent Office you know... by pwagland · · Score: 3, Informative
    For small inventors, it argues, the cost of globalizing the rights for their invention are just unbearable. For example, in Europe it costs about $7,000 per country to file a patent application.
    The EPO, when it grants a patent, grants a patent to cover all of the EU. I don't know what the costs are, but I am fairly certain that it is less than $84,000...
  8. Wonderful... by Wrexs0ul · · Score: 3, Insightful

    I can imagine the United States trying to implement a global patent office, only to be sued for infringing on someone's patent covering global access systems to public information. ...I bet it's already been issued somewhere, waiting for the day it can bite the hand that feeds it.

    -Matt

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  9. A Global Patent System Is Cool by MoThugz · · Score: 3, Insightful

    ... and all, but the problem is not with the system itself, but means to enforce the rights of the patent holder.

    eg. Let's say someone from Ghana created some cool gadget which has no predecessors or anything even remotely similar already available in the market. How soon would someone from the US inventing a similar gadget would know that there is already such thing patented a few days ago?

    Another scenario, assuming that local authorities are given the power to enforce this global patent protection law... would they be able to do it without bias? I mean if someone could build a pet robot dog that is just as intelligent and fun as the Aibo but is priced at 50% of the original Aibo, would the local authorities feel obliged to arrest this guy for patent infringement?

    And while we're at the subject of infringement, who decides whether an infringement has occured? And where will these records be stored? This might be one of the most massive database ever created (if this is feasible in the first place)!

  10. Intellectual property needs broken down by CrazyJim0 · · Score: 4, Insightful

    Theres several categories of intellectual property.

    If someone owns the rights to a song, are you allowed to:

    Re-Record it
    Sing it
    Say the title in public
    Play it in public
    Parody it
    ?

    What if someone designs a part to allow flying cars steer? We don't have flying cars yet... But when we do, should we bow down to the inventor of the steering wheel even though anyone could create one. Oh lord almighty who walks on the earth, we must bow to thee because you wrote some dumb fucking thing on a piece of paper and sent it to the patent office.

    With all the confusion with current patents, and only big corporations having enough to buy expensive lawyers... Maybe a working system should be thought up before applying it to the world.

    Heres how the system currently works. Thousands of little buisnesses try. 90% of them fail. 9% eek out a living. 1% hit it big. A corporation sees the guy who hits it big with a good idea, and steals it for their own.

  11. WIPO by millwall · · Score: 5, Informative

    There is a Swiss based organisation called World Intellectual Property Organization (WIPO) with 179 member states promoting worldwide patents.

    From the Website:

    The World Intellectual Property Organization (WIPO) is an international organization dedicated to helping to ensure that the rights of creators and owners of intellectual property are protected worldwide and that inventors and authors are, thus, recognized and rewarded for their ingenuity.

  12. Send in the tanks, then Hillary Rosen by nagora · · Score: 3, Informative
    Guess who Bush sent into Iraq to help "modernise" its IP laws after the invasion? Good old Hillary Rosen.

    That's how you get a world-wide IP system: tanks and bloodsuckers. Your country could be next...

    TWW

    --
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  13. How about a reversal? by Rande · · Score: 3, Interesting

    How about the Patent Office gets money for every patent denied?

    This will stop a lot of frivilous patents and only the really and assuredly original works will get through.

  14. It ain't so easy at all.. by Mr+Europe · · Score: 5, Insightful

    The problem is real but there are severe diffulties on the road to global patents.
    1. Many developing countries have no interest in commiting to such international agreements. They see the cheap labour their only weapon to get to the international market. And they cannot afford much research.
    2. The consept of patent varies a lot. As a well known example many ideas patented in US could never get a patent in Europe.
    3. Many countries are trying to protect their own industry and reluctant to accept unbiased treatment of foreign and own patents. That the real world situation. And I'm now talking about the "civililized"/rich countries with many international contracts.

  15. Patent issues by 91degrees · · Score: 5, Insightful

    The cost of filing in several different countries is largely irrelevent to a small inventor. The income from one country alone could often result in a significant return on investment. There are other issues though:

    1. The cost of filing in one country. Most inventions are failures. $7000 just for one country is a lot of money to invest in a product that the world just isn't ready for. With careful budgetting, this could support the inventor for another few months, allowing for him to perfect his invention

    2. Timeframes. 20 years is far too long. Nothing that's 20 years old could ever be considered at all modern. Most cars last about 10 years. Computers are out of date in about 3. Even industrial equipment is usually outdated much more quickly than that. If something has not returned the investment cost within 5 years, just about any organisation would consider it a failure.

    3. Lack of protection for independent inventors. It's actually very likely that several people will come up with the same idea at the same time. - for example, Bell beat Edison and others to the invention of the telephone by a short time - Shouldn't others be entitled to actually finish their invention without being charged with breaching a patent that hadn't been granted when they started?

  16. Patents do help by thogard · · Score: 3, Insightful

    Patents do help drive some technology but only when they are low cost (how much did Edison pay for his early patents?) and the patent office does check for prior art. Unless the a patent office has a better database than google, they simply can't do their job.

  17. He was robbed! by Anonymous Coward · · Score: 5, Insightful

    His lawyers advised him badly. I work as a patent attorney for a major automotive systems company and their plan is to patent only in US, UK, France, Germany and Japan.

    Their competitors can knock off as many copies as they like in third world countries like Ghana, Cambodia or Belgium, but if they can't import them into the major markets then it is pointless.

    Always focus your patents on the countries you will sell in, and use them to block imports from elsewhere.

  18. Global patents means global prior art by GerardM · · Score: 3, Insightful

    Yes, you might think that it makes sense. But when a patent is to be granted, there must be no prior art. Therefore a global patent requires a global research for prior art. Consider the current quality of patents granted, how many are bogus. Consider the cost of researching for the admissability of a patent. Now would you want to reexamine ALL patents world wide or would you prefer the status quo? Thanks, Gerard

  19. Re:Whole other idea by tomgarcher · · Score: 3, Informative

    You fool. The idea behind patents is that it gives the inventor a time limited monopoly thus encouraging technological innovation. No patents means that we start to compete on who has most financial/marketing/political muscle - i.e. large firms win every time. Patents and copy right allow small firms to have a chance against larger companies and actually spur on technological development.

  20. World Feudalism by rknop · · Score: 4, Insightful

    We're not heading towards World Democracy or even World Communism, but World Feudalism. It is rapidly getting to the point that if you want to invent or create something, you will need to do so under the aegis of a large corporation. You will need the legal and financial backing of a large corporation (your feudal lord) to protect you (with their own patent portfolio) if you want to create anything-- otherwise, one of the other fedual lords will quash you, and you won't be big enough to defend yourself. In exchange, you will show fealty to your corporate feudal lord by signing over any rights to anything you create, hopefully being reasonably well paid in the process.

    Most people may be relatively comfortable, or at least fed, but the individualist creator simply won't be able to exist. (And, alas, nobody will think there's anything wrong with this. Most of the world doesn't really care about freedom of thought. Once they're fed and comfortable, people seem to care care more about bread and circuses (or SUVs and HDTVs) than actual liberty.)

    Yes, global intellectual property concerns are making the world safe for medieval forms of government and social organization.

    -Rob

  21. Not a good idea by Jeppe+Salvesen · · Score: 3, Interesting

    Such a system would be a disaster for tinkerers and smaller, specialized companies. Frankly, patents should be harder to obtain but quite cheap. That way, we'll get more innovation.

    --

    Stop the brainwash

  22. Patent costs by canpat · · Score: 3, Interesting

    I have been working in the patent field for a few years and I feel bad for the inventor mentioned in the article. There are ways that the costs can be structured to avoid the cash crunch he experienced. The Patent Cooperation Treaty (PCT, which is administered by WIPO) now operates to allow an inventor up to 30 months from filing in their first jurisdiction to decide whether to file in other PCT member nations. Most of the world is part of the PCT (with the exception of much of the Arab world, some of South America, and Taiwan). The PCT process is an application which is subject to a prior art search, like any other patent office, and to an optional examination. Therefore, a current inventor faces the following costs (approximately): Day 0 $7000 for preparing and filing in the US Month 12 File a PCT application (charges about $4000); File in non-PCT countries Month 14 $3000 in legal fees for examination process in US Month 30 File in other PCT countries ($$$$$$) While the costs at Month 30 are huge, as mentioned in the article, the inventor has hopefully been marketing his invention since Day 0. By Month 30, the inventor can decide whether the invention is marketable and to what extent. Depending on his cash flow at that point, he can decide how much he has to spend on getting patent protection around the world. One of the big costs to filing in other countries is the translation costs. Japanese translation costs can hit $7,000, as much as to draft and file the patent. Therefore, you can also target a few major languages such as French, Spanish, German etc. Many countries will accept a patent translation in one of these languages and thus you keep your costs to a minimum. As far as the debate about which countries to file in goes, producers vs. consumers, the answer is "yes". With limited funding, generally you would patent in major consumer countries, because their legal systems are generally more patent friendly. With more funds, you would then start to target producer countries. The reason is that it may be easier to stop one producer than dozens of distributors. However, much of this decision rests with the type of product and the nature of the industry. Remember when we're feeling sorry for an individual inventor (and I work with with many of them) that a patent is an asset and that the cost of assets are part of the startup costs of any business. Most small businesses fail just as most inventions fail. The main reason that inventions fail is not in the patent system, but in the marketing. Just a thought to keep in mind.