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Steal This Idea

daltonlp writes "Many stories under the "patents" topic on Slashdot are about objectionable patents (Amazon's one-click purchase patent, for instance). These stories typically draw comments full of righteous indignation and jeers about the incompetence of the US patent & trademark office. Don't you wish you could package that sentiment in a handy, bound volume? Maybe with a few more hard facts than you're likely to find on /. ? Well, now you can." Read on for the rest of Dalton's review of Michael Perelman's Steal This Idea. It's not a new book, but it seems more relevant every day. Steal this Idea: Intellectual Property Rights and the Corporate Confiscation of Creativity author Michael Perelman pages 272 publisher Palgrave Macmillan (April 2002) rating Worth Reading reviewer Lloyd Dalton ISBN 0312294085 summary A hard-hitting look at the state of the U.S. patent & trademark system.

Most of the themes and arguments in Steal This Idea will be familiar to anyone who's read a Slashdot thread on patents. Michael Perelman is an economics professor at California State University. In Steal This Idea, he takes the position that patents (and trademarks, to a lesser extent) hurt science and the economy more than they help. He makes a pretty convincing case.

Roughly half the book is devoted to the negative effects of patents on scientific research. Perelman claims that tying research to intellectual property skews the balance of study away from basic research on fundamental problems, and toward short-term research geared toward improving existing products. Several real-world examples are given--many of the most potent come from the world of biological and pharmaceutical research:

Two decades ago, Philip Needleman, then a researcher at Washington University, in St. Louis, and his co-workers postulated the existence of two cyclooxygenase enzymes, COX-1 and COX-2. By 1990, Dr. Needleman, then chief scientific officer at Pharmacia, had guessed that the COX-2 enzyme plays a critical role in inflammation. By 1992, three other groups, including one at Rochester, had confirmed the existence of the enzymes by describing the genes that control their production. Although Rochester won the patent, the competing teams at UCLA and Brigham Young University claim that their work was fundamental.

Whether UCLA, Brigham Young, or Rochester deserved the patent is beside the point. More important is the idea that the granting of a patent on a bodily substance permits the owner to demand royalties from any company that produces a medicine that targets the substance.

Perelman gives historical evidence of IP hampering the development of new technology. His best example is the thicket of radio patents that entangled the baby radio industry, until the U.S. government voided many of them in the interest of accelerating radio technology during WWII.

Finally, Steal this Idea makes the case that scientific progress in the last half of the twentieth century owes a greater debt to basic research from academic and publicly-funded scientists and researchers than to corporate research. The concern is based on the large amount of time (decades, rather than years) needed for basic scientific discoveries to become marketable products is largely ignored by corporate research, which is focused on quarterly results.

It's curious that the internet--maybe the most obvious example of this, is barely mentioned. After all, business research has failed miserably at defining network protocols that match the resilience and utility of the network designed by publicly-funded scientists in the 60s. This may be because Perelman is less interested in obvious examples than lesser known ones, of which there are several in the book.

The second half of the book argues against patents (and Intellectual property in general) in terms of economic theory. Economics is Perelman's area of expertise, but it is not mine. I had to read most of these chapters twice before I understood them. They're interesting stuff, though. Perelman illustrates various ways economists attempt to shoehorn non-tangible goods (information) into economic models based on "lumpy objects." He illustrates the flaws in several of these models, and how these flaws translate into inefficiencies in actual markets.

Good: The book isn't just a rant, although it sometimes reads like one. Perelman is firmly biased against IP, and he sometimes uses a few paragraphs to rail against corporations in general. But the book is logically laid out, and presents evidence in well-defined pieces, always clear about what each example is meant to illustrate.

The examples. Those mentioned above are just a few of the many real-life events noted in Steal this Idea. They comprise the bulk of Perelman's case against patent IP. It's always tough to build an argument on anecdotal evidence, but in this case, there's a great deal of evidence.

The scope. I had doubts that a 211-page book could do justice to the issues with every type of intellectual property. Fortunately, Perelman doesn't attempt to cover copyrights, and barely touches trademarks. The overarching theme of the book is that intellectual property (mainly patents) in the hands of corporations works against the original goals of its creators--to encourage innovation and help the economy. The book does a solid job of supporting this claim.

Bad: IP is supposed to be a "limited" monopoly. Patents are, arguably, the most "limited" of the three types of IP in the US (copyrights, patents and trademarks). Perelman could have acknowledged this, and given concrete examples of why the limits aren't enough to balance the monopoly power. He doesn't explicitly do so.

Copyright is nowhere to be found. That's not all bad, since any book would be hard-pressed to do a better job of handling copyright issues than Jessica Litman's Digital Copyright . Still, Steal this Idea might have included a few more references to copyright-specific cases or works, if only to encourage further reading (patent & trademark examples include many references).

Perelman gives some illustrative figures about why the patent mess is so bad, and why the USPTO is unable to control it. But there's not much meat there. Hopefully, someone will take a more in-depth look at the USPTO itself, and how it operates.

Conclusion: Steal this Idea has a great deal of information, packed into a fairly short book. It's a good companion to Digital Copyright, and well worth reading for anyone interested in how IP works (or doesn't work).

You can purchase Steal This Idea from bn.com. Slashdot welcomes readers' book reviews -- to see your own review here, read the book review guidelines, then visit the submission page.

12 of 222 comments (clear)

  1. Thanks... by paranode · · Score: 0, Offtopic

    ...for a free subscription to Slashdot for a day!

  2. Me! by Anonymous Coward · · Score: -1, Offtopic

    IM GAY!

  3. I have a BETTER Idea: +1 Patriotic by Anonymous Coward · · Score: -1, Offtopic
  4. Re:Red Title by gorre · · Score: 1, Offtopic

    I think for once us poor sods are getting the stories early a pleasure usually reserved for subscribers only. Thanks /. :).

    --
    "Madness is something rare in individuals - but in groups, parties, peoples, ages it is the rule." -- Nietzsche
  5. Re:Red Title by Fishstick · · Score: 1, Offtopic

    free subscription day, I guess.

    Subscribers get to see stories before they are posted for the general public and I'm told they appear in red during this period where subscribers-only can preview.

    must be a glitch in the matrix

    --

    There is much cruelty in the universe, John.
    Yeah, we seem to have the tour map.

  6. Re:Red Title by Anonymous Coward · · Score: -1, Offtopic

    "Woah, Deja vu"

    You can see each story 10-20 minutes before it goes "live." (Assuming we posted it that far in advance, which usually we do.) Look for the red titlebar and a timestamp from "The Mysterious Future."

  7. It's RED by ringbarer · · Score: -1, Offtopic
    --
    "Why did they cancel my favorite Sci-Fi show? I downloaded ALL the episodes!"
  8. Steal this subscription! by 42forty-two42 · · Score: -1, Offtopic

    Seriously, what's up with this?

  9. From Martha Stewart to the Slashdot Community by Anonymous Coward · · Score: -1, Offtopic

    To My Friends and Loyal Supporters,

    After more than a year, the government has decided to bring charges against me for matters that are personal and entirely unrelated to the business of Martha Stewart Living Omnimedia. I want you to know that I am innocent -
    and that I will fight to clear my name.

    I simply returned a call from my stockbroker. Based in large part on prior discussions with my broker about price, I authorized a sale of my remaining shares in a biotech company called ImClone. I later denied any wrongdoing in public statements and in voluntary interviews with prosecutors. The government's attempt to criminalize these actions makes no sense to me.

    I am confident I will be exonerated of these baseless charges, but a trial unfortunately won't take place for months. I want to thank you for your extraordinary support during the past year - I appreciate it more than you will ever know.

    For more information, please visit the special website I have established for you at www.marthatalks.com. I will do my best to post current information about the case, and you will be able to contact me there at martha@marthatalks.com. I look forward to hearing from you.

    Sincerely,

    (signature)

    Martha Stewart

  10. *BSD IS DYING by Anonymous Coward · · Score: -1, Offtopic

    It is official; Netcraft now confirms it: *BSD is dying

    One more crippling bombshell hit the already beleaguered *BSD community when IDC confirmed that *BSD market share has dropped yet again, now down to less than a fraction of 1 percent of all servers. Coming on the heels of a recent Netcraft survey which plainly states that *BSD has lost more market share, this news serves to reinforce what we've known all along. *BSD is collapsing in complete disarray, as fittingly exemplified by failing dead last in the recent Sys Admin comprehensive networking test.

    You don't need to be a Kreskin to predict *BSD's future. The hand writing is on the wall: *BSD faces a bleak future. In fact there won't be any future at all for *BSD because *BSD is dying. Things are looking very bad for *BSD. As many of us are already aware, *BSD continues to lose market share. Red ink flows like a river of blood.

    FreeBSD is the most endangered of them all, having lost 93% of its core developers. The sudden and unpleasant departures of long time FreeBSD developers Jordan Hubbard and Mike Smith only serve to underscore the point more clearly. There can no longer be any doubt: FreeBSD is dying.

    Let's keep to the facts and look at the numbers.

    OpenBSD leader Theo states that there are 7000 users of OpenBSD. How many users of NetBSD are there? Let's see. The number of OpenBSD versus NetBSD posts on Usenet is roughly in ratio of 5 to 1. Therefore there are about 7000/5 = 1400 NetBSD users. BSD/OS posts on Usenet are about half of the volume of NetBSD posts. Therefore there are about 700 users of BSD/OS. A recent article put FreeBSD at about 80 percent of the *BSD market. Therefore there are (7000+1400+700)*4 = 36400 FreeBSD users. This is consistent with the number of FreeBSD Usenet posts.

    Due to the troubles of Walnut Creek, abysmal sales and so on, FreeBSD went out of business and was taken over by BSDI who sell another troubled OS. Now BSDI is also dead, its corpse turned over to yet another charnel house.

    All major surveys show that *BSD has steadily declined in market share. *BSD is very sick and its long term survival prospects are very dim. If *BSD is to survive at all it will be among OS dilettante dabblers. *BSD continues to decay. Nothing short of a miracle could save it at this point in time. For all practical purposes, *BSD is dead.

    Fact: *BSD is dying

  11. STEAL THIS FIRST POST! by Anonymous Coward · · Score: -1, Offtopic

    You can do it, I did!

  12. STEAL THIS TROLL! by Anonymous Coward · · Score: -1, Offtopic

    Abbey Hoffman did!