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Google and Apple Spent More On Patents Than R&D Last Year

parallel_prankster writes "NYTimes has an interesting article about how patents are really stifling innovation in the tech industry. Today, almost every major technology company is involved in ongoing patent battles. Of course, the most significant player is Apple, industry executives say, because of its influence and the size of its claims: in August in California, the company won a $1 billion patent infringement judgment against Samsung. Former Apple employees say senior executives made a deliberate decision over the last decade, after Apple was a victim of patent attacks, to use patents as leverage against competitors to the iPhone, the company's biggest source of profits. At a technology conference this year, Apple's chief executive, Timothy D. Cook, said patent battles had not slowed innovation at the company, but acknowledged that some aspects of the battles had 'kind of gotten crazy.' It is a complaint heard throughout the industry. The increasing push to assert ownership of broad technologies has led to a destructive arms race, engineers say. Some point to so-called patent trolls, companies that exist solely to sue over patent violations. Others say big technology companies have also exploited the system's weaknesses. 'There are hundreds of ways to write the same computer program,' said James Bessen, a legal expert at Harvard. And so patent applications often try to encompass every potential aspect of a new technology. When such applications are approved, Mr. Bessen said, 'the borders are fuzzy, so it's really easy to accuse others of trespassing on your ideas.'"

8 of 119 comments (clear)

  1. This is what happens... by WGFCrafty · · Score: 4, Insightful

    This is what haappens when we let attorneys build the system. It's almost written for them. No matter who gets screwed, an attorney wins, somewhere.

  2. Re:history question. by Anonymous Coward · · Score: 3, Insightful

    In other words, the US patent system has been shit for a long time but for some stupid reason we have yet to get around to fixing it.

  3. Re:The Source of This Headline? by WGFCrafty · · Score: 4, Insightful

    Are they including Google's purchase of Motorola Mobility?

  4. Indirect R&D by Grond · · Score: 4, Insightful

    Most of Apple and Google's patent-related spending was not on litigation but rather patent purchases, such as Google buying Motorola primarily for its patent portfolio. But the value of those patents is part of what enabled Motorola to invest in the R&D that produced those inventions in the first place. Effectively, Apple and Google financed R&D done at other companies. I don't think it's meaningful to draw such a bright line between "spending on patents" and "spending on R&D."

  5. Re:Because stupid people haven't realized by Anonymous Coward · · Score: 2, Insightful

    Sure! Use the idea and do something with it! Like, build something?

  6. Simple math by JoeMerchant · · Score: 4, Insightful

    Good engineer: $60-80/hr

    Crappy lawyer: $300/hr

    Good lawyer: OMG$/hr

    If you're going to bring in the suits, you'd better have the wheelbarrows of cash ready - which Google and Apple both do.

  7. Re:Just stop giving out math patents by hovelander · · Score: 3, Insightful

    Looks like the only thing that will come close to fixing it will be from having gone over the buggering edge of ridiculousness.

    http://www.mondaq.com/unitedstates/x/156824/Patent/First+To+Invent+First+To+File+Or+First+To+Disclose+Patent+Reforms+Real+Incentive

    First to file will bring on the Patent Armageddon, most likely. That change is such a BLATANT swing to the rich I still have a hard time fathoming how the decision was even made. "Hmmmmmm, how can we make sure that no one has a business outside of serving my elite buddy Chad some low wage service commodity? Oh, I know! Let's tip the scales completely towards the armies of lawyers who sit around all day spamming the patent office."

    Hate to mention the movie Brazil again, but Gilliam had prophecy there...

  8. Software patents do the opposite of their design by GoodNewsJimDotCom · · Score: 4, Insightful

    The idea that the patent system was founded on was protecting an idea so it can get to market without being stolen.

    I think we've found with software patents, the opposite holds true. Software patents protect the big guys so little guys can't make any product.

    Lets face it: Programming software is illegal. If you make any non trivial software, you trip over dozens, hundreds, or even thousands of patents you're not even aware even exist! This is because people are awarded patents on trivial things that everyone else already knows how to do. So programming is illegal, we just try and make aps with the hopes that no one is going to sue us. But at any time, someone could sue if they wanted to.

    Because the big guys patents so many trivial things, non-trivial software trips over many patents. Patents do not protect the little guy. Patents protect the big guy from the little guy having a chance to compete.