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Cato Institute Critique of Software Patents
binarybits writes "I've written an article for the free-market Cato Institute about how patents impede innovation in the software industry. It points out that people tend not to realize how vast the software industry is. It's not just Google and Microsoft; virtually every organization has an IT department producing potentially-infringing software. Organizations as diverse as J. Crew and the Green Bay Packers have been sued for patent infringement. It's crazy to expect all these organizations to worry about potential patent infringement. Hopefully the Supreme Court's Bilski decision will lead to new limits on software patents."
Even from that perspective, it might be of some use. I'm not always a big fan of the Cato Institute, but they're influential among free-market conservative politicians. When it comes to entrenched interests with lots of lobbyists, Cato is one of them, so them lining up on this side could be useful. Of course, it remains to be seen how strong the support is--- will Cato actively lobby against software patents, or just publish the occasional article?
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This particular argument from the article is oft-repeated but weak:
"Software developers already enjoy strong copyright protections for their work, rendering patent protection largely redundant."
The exact same argument could be made for several classes of patent, such as chemical process patents, that people seem to generally consider legitimate patents in pretty much every country that has patents. If I am to believe that this is a compelling argument against software patents, then it is also a compelling argument against some other patentable areas. (Most arguments against software patents have this feature.)
On the other hand, a much more compelling argument can be made against "business method" patents (a subset of the suitcase called "software" patents) because they do not strictly define a machine. The reason algorithm patents (also part of the "software" patent suitcase) have long been acceptable just about everywhere is that they are strict abstractions of novel circuits (patentable material in virtually every country). As a general observation, most proponents of software patents are thinking of algorithm patents while most opponents of software patents are thinking of business method patents. The ambiguity of the term "software patent" muddies the context and makes intelligent discussions more difficult. It would help if everyone was more precise in their selection of terms.
Patent attorney here. Yes, software patents shouldn't be there. Patents are there to stop people from sitting on their ideas. Stopping people from sitting on their ideas helps society, because it give society more knowledge. However, for software there is no need for this mechanism.
[Citation needed].
Here's a bunch of citations I once collected (note that it also includes a few opinions of political committees, but those are clearly marked).
Since State Street, there has been immeasurable innovation in the field of software. You've got nothing to back up this assertion.
I think we can indeed agree that software patents have not killed the software industry. That's however not a very strong argument if you claim that software patents are necessary or even helpful.
There is no shortage of innovation because of lack of progress. If one person doesn't think of it, another one will.
The same could be said about any field of invention, including machines and compositions of matter.
It's however doubly so applicable to software, because software innovation requires much less investment in materials, works with an idealised abstraction (rather than with finicky physical bits), and consists almost exclusively of incremental innovation. A.o., the FTC report and the report by the National Research Council cited above go into more detail.
Well, you could read the claims of the patent. That would make it very easy to figure out whether your program is off the hook.
Of "the" patent? You mean of all the granted patents, right?
And actually, the risk of whether or not you infringe on a patent (software or otherwise) is simply not manageable in practice. How do I know? Because you cannot insure yourself against such risks. AIG, Lloyds and others have tried for a short while to offer such policies, and suffered losses up to 3000%! So if even those guys specialised in risk management can't determine the risk of infringing on a patent, what makes you think Joe the Programmer can do so with any degree of accuracy?
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