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Lawmakers Take Another Shot At Patent Reform

narramissic writes "Patent reform legislation was introduced yesterday (PDF), which, if it passes, would be the first major overhaul of US patent law in more than 50 years. (It should be noted that the new legislation is very similar to the Patent Reform Act of 2007, which died on the Senate floor last year.) The legislation would bring US patent law in line with global laws, and introduce 'reasonable royalty' provisions, which change the way damages are calculated and would reduce the likelihood of massive payouts for some patent holders. Representatives from Google, HP and Intel were quick to say that the changes would cut down on frivolous patent lawsuits. But the Innovation Alliance, a group representing patent-holders that oppose the legislation, said that it would 'devalue all patents, invite infringement — including from companies in China, India and other countries — and generate more litigation that will further strain the courts.'"

45 of 154 comments (clear)

  1. changes by Anonymous Coward · · Score: 3, Interesting

    0. Any patent not being sold in a current product line shall pass into public domain.

    Might as well add this to copyright reform too.

    1. Re:changes by techno-vampire · · Score: 2, Insightful

      So you think that a company has to develop a product and put it on the market before getting a patent? By your reasoning, that's the only way they could get one, and doing that leaves them open to having other people a)copy their idea and then b) using that copy as "prior art" to fight the eventual patent. Do you even take one second to think before posting?

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    2. Re:changes by erroneus · · Score: 3, Insightful

      YES. That is why a whole bunch of products are protected by those "Patent Pending" labels and the like. At the very least, a patent needs to have been applied for but not necessarily granted.

      There are a LOT of "inventions" that can be imagined for which adequate materials have not yet been developed. What if I were to patent "antigravity panel that uses an unknown material that acts against gravity when power is applied"? This panel material is critical to the invention and I can claim to have first thought of its use even before the material with said properties has been developed.

      Patents need to GET USED not trolled. A great test for using a patent is actually producing a product for sale that works.

      So the "protection" you are looking for is the "patent pending" label.

    3. Re:changes by sir_eccles · · Score: 3, Insightful

      For a start your anti gravity patent wouldn't get granted because you haven't reduced it to practice. In simple terms this means you haven't worked out all the details and written them down.

      But just suppose you knew of a new material that made your thing work. You can make it in teeny tiny amounts on your kitchen table. But you need a big pile of cash, time, a large lab and a team of research scientists to take that kitchen table process and scale it up.

      You could go round to some banks (ha!) or maybe a venture capitalist or some bored millionaire asking for help. But they all turn you away because under your system, you can't get patent protection until you have a product. So they all walk away because the risk is too great.

      There are many inventions like this that are filed for by people who don't have the means to commercialize or even build a single prototype. For them, patents offer a valuable thing they can get that has value to investors.

    4. Re:changes by SCHecklerX · · Score: 4, Insightful

      which is why IMHO:

      1) get rid of software and business method patents
      2) in order to patent something, you need to have a working model, or show that you have the means to produce said model within a certain timeframe.

      I've had plenty of ideas. Some of them I could have patented. Why didn't I? I had no intention of going through the effort of building any type of prototype. If someone else does all of the work without ever seeing your work, then you should have no right to any type of money from that work, squatter.

    5. Re:changes by coolsnowmen · · Score: 2, Informative

      You should look into what an "invention disclosure is"
      http://www.patentapplications.net/disclosure/index.html

      I believe you can begin the patent process WAY before actually receiving a patent, and thereby protect yourself from people copying your product (in USA atlease) if/when you are given your notice of allow-ability.

      Then if someone has decided to copy your product you can force them to stop, or license it to them and sit back and make money off of their work (because they are making money off of yours).

    6. Re:changes by srleffler · · Score: 2, Insightful

      The trouble with that is that some technologies take effort to develop from the concept stage to the "marketable product" stage. Unless devices can be patented before this development is done, there is no way to secure financing to develop the product. Prototyping is expensive and takes time. Designing a final product takes further time and money. Building production capacity to actually make that final product takes still more time and money. Who is going to pay for that if someone else could start selling them two days before you're ready to ship your product, and invalidate your patent?

    7. Re:changes by techno-vampire · · Score: 3, Informative
      YES. That is why a whole bunch of products are protected by those "Patent Pending" labels and the like

      You do realize, don't you, that all the words Patent Pending do is put people on notice that they may be liable for damages later, if and when the patent is granted? In the US, at least, the phrase has no legal effect whatsoever, and is only used as a warning that borrowing the idea now might lead to trouble later.

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    8. Re:changes by digitalunity · · Score: 2, Informative

      It is not completely without legal ramifications. For instance, the very same Wiki entry you linked cites this:

      35 U.S.C. 292 False marking.
      (a) Whoever, without the consent of the patentee, marks upon, or affixes to, or uses in advertising in connection with anything made, used, offered for sale, or sold by such person within the United States, or imported by the person into the United States, the name or any imitation of the name of the patentee, the patent number, or the words "patent," "patentee," or the like, with the intent of counterfeiting or imitating the mark of the patentee, or of deceiving the public and inducing them to believe that the thing was made, offered for sale, sold, or imported into the United States by or with the consent of the patentee; or Whoever marks upon, or affixes to, or uses in advertising in connection with any unpatented article the word "patent" or any word or number importing the same is patented, for the purpose of deceiving the public; or Whoever marks upon, or affixes to, or uses in advertising in connection with any article the words "patent applied for," "patent pending," or any word importing that an application for patent has been made, when no application for patent has been made, or if made, is not pending, for the purpose of deceiving the public - Shall be fined not more than $500 for every such offense.

      (b) Any person may sue for the penalty, in which event one-half shall go to the person suing and the other to the use of the United States.

      In other words, marking products "Patent Pending" does not protect the patent applicant but if misused does result in up to $500 in fines per offense.

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    9. Re:changes by Eskarel · · Score: 3, Insightful

      It's not so much the Patent Pending label that's important it's actually having the pending patent.

      There's no reason we can't have provisional approval for products that don't exist quite yet. The problem is patent protection for products which don't exist and which the patent holder never intends to actually create, or which are actually impossible to build beyond theory.

      Essentially the basic question comes down to whether patents are designed to protect and promote ideas or whether they're designed to protect and promote implementation.

      If you put stringent requirements on actual implementation of patents, you have the potential to shaft the little guy. You'd have to ensure a number of additional protections such as ensuring that large companies can't just refuse to fund new ideas and then develop them after the patent has expired due to lack of implementation. That's certainly possible to do though.

      The flip side of that argument is that patents which aren't turned into products stifle innovation because they stop anyone else from developing said product, and harms society as a whole.

      All that aside, patents which are overly generic, vague, or which even given full funding the "inventor" couldn't actually create, should not under any circumstances be granted, and should be culled where they have already been granted. To use an example that's been mentioned earlier. If you can build a tiny anti-gravity machine, but it's prohibitively expensive to build a full scale one without some other development, you should probably get a patent. If your full scale one cannot function without some additional development, then you haven't actually invented anything and you shouldn't.

  2. Huh? by Savage-Rabbit · · Score: 5, Informative

    ...it would 'devalue all patents, invite infringement -- including from companies in China, India and other countries...

    Pardon my ignorance, but even if that is true does it matter? These countries, especially China, have a long history of not respecting patents and they don't look set to change that attitude.

    --
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    1. Re:Huh? by TubeSteak · · Score: 2, Insightful

      Further, since when is a patent's value determined by how big of a legal payday (triple damages) you receive for infringement?

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  3. What? No Child Porn & Terrorism? by Bob9113 · · Score: 5, Funny

    But the Innovation Alliance, a group representing patent-holders that oppose the legislation said that it would 'devalue all patents, invite infringement -- including from companies in China, India and other countries -- and generate more litigation that will further strain the courts.'

    These guys really need a new PR firm. Vague insinuations about the threat of SEAsia and clogged courts is soooo pre-9/11. It's all about child porn and terrorism now, guys - get with the program.

    1. Re:What? No Child Porn & Terrorism? by soren202 · · Score: 3, Funny

      Reforming patent laws would flood the market with cheap knock off products of currently patented technology. This flood would spur the growth of child porn leading to more abused children, as well as allow terrorists in the middle east to purchase newer, up to date technology.

      Don't support perverts and terrorists! Help the children and support America! Don't pass patent reform laws!

    2. Re:What? No Child Porn & Terrorism? by mcgrew · · Score: 2, Interesting

      That comment was soooo 2002ish. Child porn, drugs, gambling, and prostitution ARE terrorism these days, Bob - get with the program.

  4. Booting the troll from under the bridge? by AuralityKev · · Score: 2, Insightful

    I'd rather go one step further - instead of measures that will reduce patent troll-filed lawsuits, why not add a punitive measure?

  5. A good first step, but . . . by defile39 · · Score: 3, Interesting

    This is a good first step. The US *should* be on a first to file system. Venue for patent suits *should* be restricted to venues that make sense (rarely ED TX).

    But some provisions go too far. Damages should be linked to some market definition - NOT what the trial court thinks is reasonable. Also, we need a change to the laws that provide incentive for innovation in regulated industries. Patents are most valuable in the life sciences. We need reform here. We need to better align value with innovation. We've still a long way to go.

    1. Re:A good first step, but . . . by Valdrax · · Score: 2, Insightful

      The US *should* be on a first to file system.

      Why?

      Why shouldn't the person or company that actually invented it first get the reward? Why should we put a premium on getting your legal paperwork in order first over getting your research and development done first? While I like the bit about people working on the same type of invention at the same time getting some immunity from patents issued to one of the parties, I don't see why the person with the fastest lawyers should be the one to profit from everyone who comes later.

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    2. Re:A good first step, but . . . by defile39 · · Score: 3, Insightful

      Let me explain the debate a bit -

      The bill proposes to link reasonable royalties to what the court deems is the value of the technological innovation of the patent. This removes any market valuation of the patent, i.e. what a patent holder can extract from a potential infringer through a negotiated settlement. Instead, the court will assign the value of the patent by sitting back and thinking about how valuable the technology is in this instance. What it fails to take into consideration is that, in most cases, patents can be used to PREVENT someone from making, using, selling, etc. the invention.

      This inherently devalues the patent. If you can only extract the value of the added quantum of technology added by the patent, you sometimes won't be able to get damages at all. For instance, if an infringer used your patented technology, but they could've alternatively used some public domain non-infringing technology, you won't get much in the way of a damages award. There is a problem with this arrangement - it changes the fundamental nature of a patent.

    3. Re:A good first step, but . . . by defile39 · · Score: 2, Informative

      There are many ways outside of patents. Be the first to market. Be the best implementer. Be the most frequent innovator. Be most in touch with consumers. Generate the strongest brand. Solidify dominance, through branding, in a certain market segment.

      Some of these actions require more resources than others, but there is almost always a way to do them well on the cheap . . . depending on how broad or how narrow your marketing plan is. The broader your targeted market, the more you're going to have to spend. Talk to a business/marketing consultant. Frankly, a good marketing plan is MUCH more valuable than a patent.

    4. Re:A good first step, but . . . by holmstar · · Score: 2, Insightful

      Yeah, but patents are damn expensive. If Joe Blow invented a thingamabob in his garage, there is little chance he could afford to patent it.

      So Joe goes out and tries to find a financier to pay for the patent. But one of his prospective financiers decides to cut joe out and just "invent" the thingamabob themselves. They file for a patent and Joe is screwed. Since first to invent doesn't matter, he can never invalidate the financier's patent.

      Granted, most patents are filed by companies, not Joe Blows, but it certainly doesn't seem fair to the Joe Blows as long as it costs ridiculous amounts of money to file for a patent.

    5. Re:A good first step, but . . . by russotto · · Score: 2, Insightful

      The US is (I believe) the only country with a first to invent system. Why stay that way?

      For the same reason the US switched to first to invent. (The US used first to file in the past)

    6. Re:A good first step, but . . . by shutdown+-p+now · · Score: 5, Insightful

      Why?

      Because "first to invent" encourages the tactics similar to that of submarine patents:

      1. Invent something.
      2. Wait for others to invent it too and start using it.
      3. File for the patent.
      4. Sue everyone who had been using your invention.
      5. Profit!

    7. Re:A good first step, but . . . by princessproton · · Score: 2, Insightful

      The fees for the patent filing itself are less of an issue than the skills needed, which is where the patent attorneys or patent agents make the big bucks and the cost of obtaining patents rises sharply. There are extremely stringent application requirements, and small errors or the failure to include minor details can disqualify the entire patent application. It is often beneficial to the Joe Blow or small company without experience with the process to hire someone if they can afford it (which is a big "if") because the basic knowledge/time/effort needed for a successful outcome can itself be prohibitive.

      --
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  6. Innovation Alliance == Patent Trolls by morgan_greywolf · · Score: 5, Informative

    The Innovation Alliance, which opposes these patent reforms, include some of the best and brightest in patent/IP trolling. One prominent company is the Canopy Partners, which is famous for its previous ownership of The SCO Group and Tessera, which is suing everyone in the wireless industry right now.

    1. Re:Innovation Alliance == Patent Trolls by techno-vampire · · Score: 3, Funny

      Didn't you know? Innovation Alliance is just a cover name. The group's real name is Patent Troll Association of America: PTAA.

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    2. Re:Innovation Alliance == Patent Trolls by StikyPad · · Score: 3, Funny

      Great New Association Acronym. Too bad they'll get sued by the Patent Infringement Troll Association.

      BTW, New Acronyms Make Baby Lesus Angry.

  7. NO, Faster-issued, shorter lifetime patents. by gravos · · Score: 2, Interesting

    If there is a problem with the patent system, it is not that patents are issued too hastily, but rather that many are issued too slowly. On the other hand we need to ensure that the quality of patents that actually ARE issued is very high, and that they only last for a brief period of time (maybe 2-4 years, tops).

    So overall, I'm not sure this is the right direction that we want to go.

    1. Re:NO, Faster-issued, shorter lifetime patents. by defile39 · · Score: 5, Insightful

      Arguably, a problem with the patent system is that all technologies are treated the same. This is, of course, necessary because of treaties obliging member states to treat all technology the same, but it causes problems with incentives. We need long patents in regulated industries (namely, bio and pharma). We don't need long patents in EE industries where changing technology makes patented technology obsolete more quickly. This, however, is a hard issue to address. We're mired in international treaties that protect the status quo.

    2. Re:NO, Faster-issued, shorter lifetime patents. by Anonymous Coward · · Score: 2, Insightful

      We need long patents in regulated industries (namely, bio and pharma).

      Yeah because they never abuse the patent system. They really need to patent 20% of our genes to protect their massive profits because the
      5000% markup on AIDS drugs doesn't earn them enough.

    3. Re:NO, Faster-issued, shorter lifetime patents. by von_rick · · Score: 2, Interesting

      Oftentimes there are patents that cover several technologies - a patent in medical imaging can cover the field of medicine, engineering and sometimes even natural sciences. There will always be an uncertainty in deciding the shelf life of any technology and even more difficult in determining how long before it gets obsolete in a given discipline.

      The duration of a given patent is an issue best left alone. However it would be nice if we make the process a little faster and have some way to filter out patents that are in no way innovative.

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    4. Re:NO, Faster-issued, shorter lifetime patents. by defile39 · · Score: 2, Interesting

      Hence the need for longer patent terms in REGULATED industries. With regulation, you put up huge barriers to innovation. Patents are good for surmounting these barriers. The weaker the patent for these technologies, the less "activation energy" donated by the patent system. Face it - you want safe and effective drugs, proven by substantial clinical evidence? It's going to cost you. Without the ability to extract monopoly prices, we can't afford to innovate in regulated sectors. Unless you want to come up with an alternative compensation system. Good luck with that, though.

    5. Re:NO, Faster-issued, shorter lifetime patents. by Austerity+Empowers · · Score: 4, Insightful

      Ok, so no one should be patenting "genes" period. It's a separate discussion the list of things that may be considered patentable that shouldn't be.

      His point is valid, patents are intended to promote innovation. In many industries they're actually retarding it, particularly in many EE/CS/ME areas. Investment in these areas is pretty cheap, and the innovation alone is its own reward in most cases. The real issue is that these patents are often obvious enough and essential and trivial such that they really shouldn't have ever been granted. The right thing would be to toss them out a window...

      In bio/pharm, I'm still not sure 17 years or whatever it is, is the right number, it seems awfully long for the way things are today... but it does cost a crapload of money to research and test and create the new ideas. Patents are still needed to keep companies interested in R&D.

    6. Re:NO, Faster-issued, shorter lifetime patents. by jonbryce · · Score: 3, Informative

      In pharma, it takes a long time after the patent is granted before you get your product onto the market, because you have to do lots of tests on it to satisfy the regulators that it is safe. Generally they have about five years of sales under patent before the generic manufacturers can move in.

      If tech patents lasted 5 years, that would take us back to around the time WIndows XP SP2 was released. I think we could live with that.

    7. Re:NO, Faster-issued, shorter lifetime patents. by Moryath · · Score: 3, Informative

      In pharma, you generally get 5 years of sales under patent.

      In electronics/tech, you generally get 5-10 years before the tech is "stale." Unless you're like Intel or IBM or some other big company that can get their patent into the "root" of a tech standard and force everyone else to pay for the use of your patent. This is why Sony put DVD drives in the PS2 and Blu-Ray in the PS3, and spent tons of money pushing Blu-Ray on everyone: if they can get their stuff to be "the standard", then they stand to make a mint. They've also managed this with certain other technology (Beta, for instance, survived quite well in the TV production industry where quality mattered more than relative price).

      In manufacturing/tech, you can sometimes have the full run of your patent to make money, either by being the "exclusive" provider or (again) by getting people to license it.

      What's absurd isn't those limits, but the oddly strange "copyright" limits. If copyright terms were the same as the current patent terms, you'd see a lot less DRM and other foolish bullshit-crap being forced on consumers, because the primary reason for a lot of DRM (think, for example, printer cartridges) is to try to "copyright" what should, at best, be covered under a patent.

  8. Are you kidding me? by Weaselmancer · · Score: 5, Insightful

    But the Innovation Alliance, a group representing patent-holders that oppose the legislation said that it would 'devalue all patents, invite infringement - including from companies in China, India and other countries

    Yeah, because our American patent system has certainly stopped China and India from infringing thus far! Are these people nuts? Why the hell should these countries obey our patent laws regardless of whatever they happened to be? We're not the law there!

    And another thing while I'm at it:

    The legislation would bring U.S. patent law in line with global laws

    This legislation would have the best chance for getting China and India to respect our patents, since we'd be adhering to a global standard and not a local one.

    So this Innovation Alliance is, as far as I can tell - arguing against the very legislation that would have the best chance of supporting its agenda. In other words - yeah. They're nuts.

    --
    Weaselmancer
    rediculous.
    1. Re:Are you kidding me? by Weaselmancer · · Score: 5, Informative

      I don't need luck - it happened at my last job. We used to make an OBD2 car code scanner.

      The Chinese would buy them, disassemble them, reverse engineer them, and then sell clones. Not just patent infringement but blatant theft of IP. They'd copy our units even down to the bugs.

      And there are loads of patents in this particular product space. I worked on a team that wrote about half of them.

      Good enough?

      --
      Weaselmancer
      rediculous.
    2. Re:Are you kidding me? by Weaselmancer · · Score: 3, Interesting

      And you are showing your naivete. China knows there is no way to enforce this.

      Examples, you ask? Sure.

      Here is the family of devices I worked on.

      Here is an absolutely infringing device being sold. It is as blatant of a ripoff as you could possibly get. They didn't even change the freaking color of the unit.

      They reverse engineered our unit and built clones. We know this because we bought one and used it. It duplicates subtle bugs in our unit. It is absolutely 100% certainly an illegal copy. And the patent space in the OBD2 market is carved up VERY tightly, so they are certainly breaking patent law by selling this unit. Not to mention the whole "theft of IP" issues.

      And you'll notice that nobody is kicking down any doors to get these people to stop.

      Face it - this sort of thing is absolutely unenforceable. It's naive to think otherwise.

      --
      Weaselmancer
      rediculous.
  9. Re:Ridiculous arguments against, obvious need for. by mcgrew · · Score: 3, Informative

    Do you think the Chinese patent-infringing manufacturers care about US laws?

    They do if they want to sell their wares here.

  10. Parallel development is a poor use of resources by Pinky's+Brain · · Score: 3, Interesting

    Patents should reward putting your invention out in the open. Having a huge period in which to do secret development is the anti-thesis to what patents should reward.

    The only problem with first to file is that there is no grace period.

    Lawyers hate grace periods, because if a paper without a million of legalese claims holds any value in court that diminishes their contribution to patents ... they see the exact wording of those legalese claims as somehow more important than the subject covered. Which is ridiculous ... in the areas I'm an expert I can recognize the innovative parts of a paper better than a lawyer can capture it in claims.

    I think the first to file vs first to invent difference is just being played up by lawyers to disguise the fact that the real thing they want to get rid of is the grace period.

  11. The JPEG patent is not trivial ... by Pinky's+Brain · · Score: 3, Informative

    The problem with the JPEG patent was it's non enforcement for all those years.

    AFAICS the inventor in question was the first to combine RLE+VLC coding and the first to use zigzag scanning of DCT coefficients. Both pretty inventive steps for which I see no real prior art at the time. Nothing at the time could get anywhere close to his results.

    Although I'm opposed to software patents in general, I think this one was more deserved than most.

  12. don't touch it by Maxo-Texas · · Score: 2, Insightful

    17 years is bad. but it ends comparatively soon.

    i'm sure if they touch it , it is going to come out at 50 years or longer.

    --
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  13. Re:The Best Form of Patent Reform by TheTurtlesMoves · · Score: 2, Insightful

    Patents only give you a right to enforce. Hence you need to come up with legal costs. aka a corporations knows that you can't afford to litigate, they may not even bother offering a crap deal and just infringe. I know of one person personally where this was the case.

    So in summary if you are poor forget patents. You just told everyone your invention.

    The only winners in the current system are the lawyers.

    --
    The Grey Goo disaster happened 3 billion years ago. This rock is covered in self replicating machines!
  14. if only it was that easy. by bzipitidoo · · Score: 2, Interesting

    This whole thread has a lot of assumptions about how easy it is to define, delineate, and value so-called intellectual property. If it was so easy to do all that, as easy as marking the boundaries of a bit of land, then the patent system could be patched up. It's not that easy, and the patent system needs serious rolling back, starting with at the very least no more patents on software or "business methods".

    As things stand, the system has led to very expensive and endless arguing and litigation about whether an idea is novel enough to warrant patenting, or is too broad and basic a concept of nature to be patentable, or whether two or more ideas are really the same idea, or even what exactly a particular patent covers. These questions are extremely difficult, and largely beside the point, which is to encourage innovation. It's guaranteed income for lawyers, without any clear net benefit to society. It's led to an informal truce where all the players spend to stockpile patents in the same way hostile nations expend resources to stockpile weapons. This is the "Tragedy of the Blood Sport" so to speak where the manner of the competition does such damage in finding out who's the most righteous that when it's all over the issue is likely moot because no one is left fit enough to be any good. The players would have been better off not playing. And they know it, and that's why the informal truce and cross licensing deals. In ancient Rome, a big point of blood sports was to have a bit of "fun" killing off the condemned, but in today's patent system, that is most definitely not the point. Why carry on maintaining this blood sport gig? And it is a blood sport, with the patent office issuing weapons as fast as they're allowed, and the courts dragged into officiating. There's a certain horror in seeing the Joe Theismann of the patent wars, RIM, taken for an incredible $612 million in damages. Innovators have little choice but to go ahead and hope they aren't sued by too many trolls, aren't called out to go fight in the Colosseum. You can't write a program without violating not just 1 or 2 patents, but hundreds of patents.

    In your drug example, we can't know which version of two nearly identical drugs is better. It may be that one version is better for some people, and the other is better for the rest of the population. Or it may be that it depends on the environment, with one drug being better at sea level, or in winter time, or who knows? It can takes years to gather enough data to spot such trends. It may even take years to think to look for such correlations and discover that they were there all along, in decades old data. Patents interfere with this process of discovery, motivating companies to hold back data, or bury old generics so they won't compete with new patent protected drugs. Doctors are subtly and unsubtly pushed to use the new regardless of whether an old generic might actually be better.

    --
    Intellectual Property is a monopolistic, selfish, and defective concept. It is "tyranny over the mind of man"
  15. Re:Ridiculous arguments against, obvious need for. by steelfood · · Score: 2, Insightful

    But they're usually satisfied with selling in the Chinese market. There's little money and a lot of red tape here. There's a lot more money in China. Which is why a lot of established, 1st world companies are trying to break into China. There are companies trying to do the reverse, but that's much rarer, and they probably operate in a market segment where IP is not an issue.

    --
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