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How to Become a Patent Millionaire
An anonymous reader writes "SF Gate has an article about people who patent ideas for things they have no intentions of building, hoping to license technology or block competitors from doing something similar. As if the patent system weren't screwed up enough already."
Of course, there are legitimate cases for filing a patent without means to produce the product. The inventor may not have the resources, and must have the patent in hand to round up financial backing. Where do you draw the line as to what is being developed and what is not?
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There are quite a number of companies that perpetuate fantasies that the ordinary person can make a lot of money by getting a patent on an idea, and then marketing it to companies. Things go so bad that Congress passed a law to control these invention promotion firms. A form for reporting abusive forms of these services can be found at http://www.uspto.gov/web/forms/2048.pdf
(It is sad to see people who paid $10,000 to have a really bad idea for a dishwasher written up in 10 pages of form paragraphs, and the promotion activity be limited to being told that GE and Whirlpool make dishwashers.)
The reason for the reporting that is required is that many of these companies had never had a patent issue and be licensed to anyone.
Sure, there are the rare exceptions, I know of a couple personally, but for each of those there are 100 people who shelled out $10,000 for pretty much nothing.
1) Start Lord Slepnir beverages. I'll need to scrounge around for startup capital, get a factory, distribution, find a way to market it, etc. If I fail, I have to declare bankrupcy, and wind up having my house and car repoed. If I end up making a lot of money off of it, I have about 7 years to grow enough to compete with Coke and Pepsi, who will push their own knockoff of this flavor as soon as the patent runs out.
2) I contact coke or pepsi and tell them I have a new flavor. They give me a lump of cash, they take all the risk (I'm not ruined if it fails), they market it, and I get a small royality check to live off.
SF Gate has an article about people who patent ideas for things they have no intentions of building, hoping to license technology or block competitors from doing something similar
How about people who buy land they have no intention of building on, hoping to sell it to others while blocking other people from building on this land?
That's a good point - supposedly, shouldn't there be a tighter restriction on patent applications that haven't been "reduced to practice" (as in your example)? Because if they'd enforce that, the problem would be largely solved, I expect.
-Looking for a job as a materials chemist or multivariat
Exactly. Grant the patent and somebody else has to go to court. Deny the patent and YOU have to go to court...
Sorry, but PTO workers are gov-scale paid workers...there ain't enough in their salary to deal with all those lawyers. Better to pass the patent and pass the buck.
"But remember, most lynch mobs aren't this nice." (H.Simpson)
-- Joe
My wife came up with an idea a while back for a product, and we're still trying to get a prototype built. When we went to do an online patent search, we discovered at least 8 or 9 potentially troublesome patents already in place for similar devices to ours. Upon closer inspection though, they all appeared to be filed by people who never sold a product based on any of them. In most of the cases, it looked like they were written up by other people like us, trying to piece something together from parts lying around the house. (One guy described how his unit functioned using such things as an aquarium water pump and a tire inner-tube, for example.)
I can understand why the people wanted to patent their ideas, but as others pointed out - it seems like these unimplemented patents should automatically expire after a period of time. (Perhaps 2 years is enough of a time-frame to say "Show evidence of progress, or the patent gets removed."?)
As it stands now, all of these existing patents place artifical limits on the ways we can opt to accomplish specific goals inside our final product. I'd prefer not to disclose exactly what we're trying to do, but just for example - if we want to heat and distill some water in our product, we might have to use a peltier device instead of a heating coil. Even if the heating coil is the superior solutuon, it might put our device into questionable patent territory, since another (fairly broadly worded) patent already describes a device not too different than ours, using a heating coil for this function.
Otis Elevator Company is the other classic story -- Mr Otis invented the safty brake (which automatically catches an elevator if the cable breaks) and patented the idea. He then gave free license to use the invention to any and all competitors, since it would save lives.
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Case in point. My father was an engineer in the 30's and early 40's. He patented the first working variable pitch propellor. The first two patents were for designs that couldn't handle the stresses involved - he figured out how to solve both problems simultaneously. Chances are you've flown on a plane that used a variant of his invention. He tried to peddle the design but the company he was dealing with didn't like his terms so they just took the idea. The contingency lawyers he talked to wanted such a big slice of any payout that he didn't figure it was worth pursuing that avenue. My father didn't have enough money to fund a lawsuit and that was that. He did a bit more work after that - designed the landing gear for the DC-3 among other things.
It's worth noting that the article is talking about a lawyer patenting his own ideas. That perfectly illustrates who the patent system is set up to benefit.
IANAL (YET!)
So, first of all, a patent can easily cost $15K. Patent a few things that nobody wants and pretty soon, you've got through a lot of cash. Even if you do actually get a worthwhile patent, enforcing it is completely another manner -- your target company can tie you up in court for YEARS (costing tens or hundreds of thousands of dollars), at the end of which you may lose.
Secondly, you can't patent obvious or already existing technologies -- it's one of the reasons people can lose patent fights -- they patented something that somebody else invented or that anybody reasonably knowledgeable in the field would predict.
Finally, though, you can't just patent an idea -- it needs to be "reduced to practice." In other words, Wilbur and Orville couldn't just say "We have this great idea -- a flying machine. Please give us a patent on it." Part of the patent describes exactly how it works. Just patenting an idea while lying to the patent office that you've reduced it to practice is considered fraud.
Now, the problem with all this is that people regularly patent already existing ideas, they regularly patent obvious things and they regularly patent things that don't (or can't) exist. The patent office does not have the ability to make sure that every patent is good (cost, manpower, cost, speed of technology, cost, etc....) Instead, the USPTO effectively relies on patent litigation as a method of getting rid of crummy patents. Very inefficient and leads to people licensing technologies rather than spending the money to litigate obviously bad patents.
If you stake a claim in most states, you're required to do a certain amount of work on that claim - surveying, sampling, etc. in order to maintain your claim. If you fail to do the work, you lose your rights to the claim. This system was instituted back in the gold-rush days to prevent people from just staking up all kinds of property and never doing anything with it. In the patent gold rush, we could certainly stand to learn a few lessons from our past.
I wonder if one could actually use historic mining law as precedent in a defense against offensive patents?
nuke the moon
..as I understand it, is that the PTO gets more money if it actually grants the patent then if it refuses it.
Considering that it gets squat for federal money these days, you can see how this situation leads to the patenting of crap-on-a-stick and so forth.
So to fix this, do it the other way around. Charge slightly more should the patent examiner determine the invention is "obvious" and a lot more should it be determined that there is prior art.
I'd even be willing to give the examiners a direct incentive should they find prior art. (But set up an appeals process if you do that) This would discourage companies and individuals from patenting utter crap, and strongly encourage patent applicants to do a good search of the prior art, rather then (as now) choosing to avoid looking (because if you don't see it, you can say you didn't know)
That Jesus Christ guy is getting some terrible lag... it took him 3 days to respawn! -NJ CoolBreeze
Except that is not really an accurate picture of what the PTO actually *does.* You make it sound as if the PTO merely rubber-stamps any patent application that may have the least bit of potential trouble with lawyers. In reality, the PTO denies many more applications than it allows. For example, from 1996 to 2000 the PTO granted 372,079 patents to US companies and individuals. (http://www.uspto.gov/web/offices/ac/ido/oeip/taf/ us_stat.pdf) During the same period, PTO received 677,440 applications from US companies and individuals. Hardly the results one would expect from "better to pass the patent and pass the buck." And FYI, the average examiner deals with lawyers every day, on the phone and in person.
I don't mean to be argumentative - there is a lot that needs to be fixed with our current system - but it just seems too easy to me to dismiss PTO workers as mindless gov't drones, trying only to collect their paychecks......if that is not what you meant, then I apologize, but that is what it sounds like.....
We have to eat happy eggs from happy chickens.
I had an idea for a web site I like to call my technology wish list. Basically everyone can enter their ideas for products they would like to see, like "a wi-fi access point in a cell phone that my pda, laptop, and my car's on-board computer can use to connect to the internet" and then cross our fingers and hope someone decides to make it. Others could comment on and improve the ideas or tell the person that it already exists and where to find it.
If there is a patent case comes up involving one of the wishes then the postings might serve as prior art.
(If this web site already exists somewhere please post a link to it.)
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