FTC to Examine Patent Application Process
Armchair Dissident writes "The BBC is running an article that suggests that the FTC is to look into the way that patents are reviewed and issued. If this article is correct it seems that many guesses as to how patents are issued were correct; with 95% of patent applications being approved. They may also address the issue of "patent trolls"."
Here's an editorial discussing and explaining exactly the patent issuing problem in US.
It doesn't go without saying.
It is not illegal to have a monopoly. It is illegal to use your monopoly in certain ways to squeeze more money out of your customers or to stop competitors from appearing.
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You are correct. Most US patents get an initial rejection - a list of prior patents with similar-sounding words in the titles. Then your high-priced patent attorney answers each objection with why your patent is bigger, faster and cleaner. Then it gets accepted. The PTO makes no search of the literature in the field, trade magazines, or current practice, only prior patents.
How could this be fixed? Only hire experts in the field as examiners? Search google for each patent and trust the information that you get off the internet? Keep a big pile of old Scientific Americans, and Popular Science lying around at the PTO?