The Sewing Machine War
lousyd writes "Volokh has hosted a paper by George Mason University law professor Adam Mossoff on the patent fracas a century and a half ago surrounding the sewing machine. A Stitch in Time: The Rise and Fall of the Sewing Machine Patent Thicket challenges assumptions by courts and scholars today about the alleged efficiency-choking complexities of the modern patent system. Mossoff says that complementary inventions, extensive patent litigation, so-called 'patent trolls,' patent thickets, and privately formed patent pools have long been features of the American patent system reaching back to the antebellum era."
From wiki:
You learn something new every day.
Drill baby drill - on Mars
As far as the argument goes that the patent structure has been litigious, complicated, and obnoxious for a long time, I think we can all agree. Slashdot often discusses copyright as it applies to digital music, and it's interesting that the digital music industry began at a time in which there was heavy litigation over the copying of sheet music; this was in the late 1800's.
But the argument that this complex patent superstructure doesn't reduce efficiency seems a little far fetched to me. Just because we've done it this way for a long time doesn't automatically mean that it's the best system. Who can say what would have happened over the last century and a half with less complicated patent laws? I'm sure there would be no consensus as to whether we would have done better or worse.
The most compelling case for copyright, for me, comes from Joseph Schumpeter's concept of creative destruction. In essence, he argues that copyright creates more innovation because it does not allow people to use the status quo of ideas. However, I'm not sure that the complexity of the copyright system is what he had in mind, since adding complexity increases barrier entries to innovators without increasing incentives to monopolists (i.e. copyright holders) to improve as well.
The main point is that many people say the patent issues we have now are unique to the times, which as shown is not the case since the same patent issues (patent thickets, patent "trolls") existed 100 years ago).
Thus by studying the history of how that event turned out, we can better decide how to approach our current issues. As the article states there are assumptions about patent issues today that people make that this history shows to be incorrect - by knowing that we can avoid fixing the wrong things or moving in the wrong direction.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
two fold...
neither reason had anything to do with how good the machines were, Singer failed miserably to make it a viable business until he took a lawyer on board, and the two unique business methods were implemented.
1/ Singer sewing machines introduced the idea of buying a sewing machine on credit, and pushed this as the preferred way to purchase.
2/ The list price of each machine was extremely high, but you got a huge discount for trading in your old machine.
What this means was that everyone traded in, they would even buy an old used machine specifically to trade it in... Singer scrapped every single machine that was traded in.
So on the one hand they were the only company who offered easy credit, and on the other hand they were wiping out the market of competing marques as second hand machines.
From a business perspective, brilliant.
http://slashdot.org/~GuyFawkes/journal
Summary of his conclusion:
Industry in the United States has suffered from patent thickets and patent trolls almost since the inception of patent laws. We can expect to continually see patent thickets and patent trolls as many inventions and innovations today are incremental and based on prior patents. And since the Sewing Machine Wars were solved without changing the patent system or intervention of the government there is no reason to react today.
After reading the paper, my conclusion:
He is correct on all counts except the last one about the system taking care of itself. His paper provides two salient historical events that prove contrary to the last conclusion; first the only means by which the sewing machine manufacturers were able to break free of the patent litigation war and finally get to the business of making sewing machines, making profits, and innovating further was to circumvent the patent system by placing patents in a pool, and second he notes the patent thicket and trolls that plagued the newly born aircraft industry and was only solved when the government stepped in and created a patent pool so the industry could get to the business of aircraft instead of litigation.
Yes, the patent system was fscked from the beginning, all one has to do is read up on Benjamin Franklin's opinions of the new patent system, but assuming it will simply take care of itself is ludicrous. If such a conclusion is valid then we can also conclude that we can simply eliminate the patent system altogether and what comes of it will simply take care of itself.
Based on the patent pools as a solution it appears that patent law is in violation of the United States Constitution as the objective was "To promote the Progress of Science and useful Arts" and yet the patent laws are impeding progress.