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The New Yorker on Business Process Patents

caledon writes "The New Yorker has a clear, concise, nontechnical essay by its finance columnist James Surowiecki criticizing business process patents: Patent Bending. 'Although we have always had a vibrant patent system, we've managed to strike a balance between the need to encourage innovation and the need to foster competition. As Benjamin Day, Henry Ford, and Sam Walton might attest, American corporations have thrived on innovative ideas and new business methods, without owning them, for two centuries. In the past decade, the balance has been upset.' Makes the argument persuasively."

8 of 315 comments (clear)

  1. Re:an elegant solution by usotsuki · · Score: 5, Insightful

    I wouldn't abolish them altogether, but they should be restricted to physical devices that must be built from components. Not chemicals, not software, and most certainly not business methods!!

    -uso.

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    Dreams, dreams, don't doubt dreams, dreaming children's dreaming dreams. Sailor Moon SS
  2. Greed != Good anymore. by Trigun · · Score: 5, Insightful

    Previously, there were checks and balances placed in society to prevent the atrocities of the Industrial Revolution from happening again. And life was good.

    As more and more people forgot about the conditions of labor which were impressed upon the workforce, these checks and balances were overlooked and neglected, and big business took over. Like a kid in a candy store, these entities destroyed the system which fostered competition, and made it a tool to oppress the people. Big Business became Government, and further cemented the position as our overlords.

    The current patent system is just a tool used for this purpose.

  3. Now everyone wants a turn... by TWX · · Score: 5, Insightful

    "As Benjamin Day, Henry Ford, and Sam Walton might attest, American corporations have thrived on innovative ideas and new business methods, without owning them, for two centuries."

    Yes, and now every idiot who went through business school wants to get in a piece of the action, despite frequent majoring in "Business" is more like highschool++ rather than serious post-secondary education for many. I'd have a lot more respect for "businessmen" if several of the small businesses that I've worked for didn't ignore their employees when it came time to make technical decisions, and would consider long term effects. These people even have a financial stake in what they're doing, compared to those that control other peoples' money, and they still are screwups. I don't see why we should let any company or business person patent a business plan, when they think that one good idea without heavy technical implementation should be something that they can solely profit on.

    Besides, most of the actually successful business people that I have met don't feel a need to patent business ideas or processes. Of course, these generally are people who liked working in a field and started their own companies because of that, and knew the tech and work, not simply how a spreadsheet worked.

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    Do not look into laser with remaining eye.
  4. So where do you draw the line? by beavis88 · · Score: 5, Insightful

    Using your example, if you've implemented your new process properly, you should have a BIG leg up on the competition -- even if they do copy your innovation. While you're selling your cheaper-to-produce widget (either undercutting your competition, or reaping higher margins), they are scrambling to work the new business process into their existing assembly lines, figuring out how to pay for it, etc.

    You say that "the idea of renting DVDs over the Internet does not seem unique to me" -- to which I say, a streamlines manufacturing process to produce widgets does not seem unique to me. You're still producing the exact same widget as your competitor, albeit at a lower cost.

    I could see patenting a method of creating a widget with the same functionality, but using different components. But I'd have to drink an awful lot to be convinced of the merits of patents on business processes.

    Black and white solutions rarely work as well as was intended, but this is one place where I think a gray area may be a killer.

  5. Re:Nice to see in popular media by siskbc · · Score: 5, Insightful
    (if anyone tries quoting the 'all software is produced by a turing machine, so is all obvious argument, I'll hit them!),

    Best comeback to that inane crap is "Turing thought the brain was a Turing machine - therefore, all innovation of any kind is obvious and unpatentable." See how they like that.

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    -Looking for a job as a materials chemist or multivariat

  6. Re:an elegant solution by PickaBooga · · Score: 5, Interesting

    The idea that patents help the individual inventor is a myth.

    The best resource I know is Don Lancaster's "The Case Against Patents":
    For most individuals and small scale startups, patents are virtually certain to result in a net loss of time, energy, money, and sanity.

    One reason for this is the outrageously wrong urban lore involving patents and patenting.
    A second involves the outright scams which inevitably surround "inventions" and "inventing".
    A third is that the economic breakeven needed to recover patent costs is something between $12,000,000.00 and $40,000,000 in gross sales. It is ludicrously absurd to try and patent a million dollar idea.
    Don Lancaster is a old-school hardware/AppleII hacker. On his website he lists a lot of alternatives to patenting that are actually helpful to the individual inventor.

  7. Basic Problem by Jerf · · Score: 5, Insightful

    I think the basic problem is the patent system is not designed to handle software or business method patents. It was set up from day one to handle physical objects and processes, and it does that tolerably well. It's possible to look at two processes or objects and make a reasonable determination whether they are the same. The equivalent is not really possible for software or business method patents.

    Remember one of the purposes of patents was not to lock up entire ideas, but lock up one implementation, encouraging others to create other implementations to stimulate market competition. Since the patent system is fundamentally unsound in this domain, and has no reasonable way to determine if two things are the same, the patent system has "defaulted" to the broadest possible interpretation of "same" (as opposed to the narrowest possible, in which case it would be virtually impossible to violate a patent, patents would be nearly worthless, and by extension, the Patent Office would be nearly worthless and powerless, which is the Number One Anathema to a beauracracy). As a result it's not possible to create alternate implementations without automatically infringing.

    Patents do not belong in this domain, they are downright oxymoronic.

  8. Re:Business patents and time to railroad by molarmass192 · · Score: 5, Insightful

    You're obviously confused over the meaning of the word communism. If we were "whiny little communists" we wouldn't have money and neither would the other guy. In fact, the state would have everything and would distribute goods to people as they needed them. Reality is that there has never been a communist government, rather they were all Marxist governments with no intention of ever progressing into communism. The unattainable goal of a "communistic society" was just a carrot used to make totalitarian rule more palatable to those they were oppressing. Marx and Engles were social idiots who probably drank way too much absinthe while in Paris to even realize that their crappy papers were based on anything but reality. Back to the subject ...

    Under capitalism, the goal of the state is to promote open competition. You can reconcile this with anti-trust law since it's goal is to restore open competition. However, patent law prevents open competition. It creates state controlled monopolies whose sole purpose is to prevent free market competition. State granted monopolies are a facet of fascism, not capitalism. I don't see how you can call yourself a free market capitalist but still believe in patents.

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    Good people do not need laws to tell them to act responsibly, while bad people will find a way around the laws-Plato