The Man Who Created the Pencil Eraser and How Patents Have Changed

fermion writes "This weeks 'Who Made That' column in The New York Times concerns the built in pencil eraser. In 1858 Hymen Lipman put a rubber plug into the wood shaft of a pencil. An investor then paid about 2 million in today's dollars for the patent. This investor might have become very rich had the supreme court not ruled that all Lipmen had done was put together two known technologies, so the patent was not valid. The question is where has this need for patents to be innovative gone? After all there is the Amazon one-click patent which, after revision, has been upheld. Microsoft Activesync technology patent seems to simply patent copying information from one place to another. In this modern day do patents promote innovation, or simply protect firms from competition?"

Comments

Re:Revised Summary

[tmorehen]

Patents have always protected firms from competition. That has always been part of their purpose. Another part of their purpose is to enable some one ordinarily skilled in the art to duplicate the invention when the patent expires. That's the trade-off that justifies patents, as opposed to treating inventions as trade secrets.

What has changed is the definition of obviousness and consequently innovation. Now something is innovative if no one can point to prior art, notwithstanding that it may be obvious to the proverbial someone skilled in the art. Today, the pencil plus eraser would be patentable.

Another thing that has changed is that patents have become so vague that they cannot be duplicated nor can anyone be certain what they cover. This is particularly a problem for business method and software patents.

"Service economy" became "parasite economy"

[oldhack]

"Service economy" with IP fantasy led to this bullshit world for the West and other developed countries.

And it would. Bureaucratic, parasitic, loophole-exploiting endeavors like lawyering, bankering, lobbying are most rewarded.

The West is rotting from within.

Strategic Warfare

[Somebody Is Using My]

The shift in policy is an intentional, if unwritten, strategy intended to keep America a competitive force in the world's economy.

In the past, America's power was based on its vast, untapped resources; steel, oil, cotton, grain, whatever - we had it and could rip it out of the ground cheaply. We sold these resources to the world and became rich. But these days other developing nations are willing to sell their resources far beyond what we can afford, and we can no longer depend on those resources as the primary engine of our economy.

Later, America's strength came from its industry; our factories produced high-quality goods in vast quantities. And we became rich again (well, even richer). But today, we've sold the technology to poorer nations, and their citizens are willing to work for wages that would starve our own people. So America can no longer depend on its industry to sustain it.

So instead, we've turned to our ingenuity and inventiveness as a way to ensure our dominance; our patents, our copyrights, our trademarks. We've hitched our wagon to the idea that our "intellectual property" will keep us a prominent force on the world stage. Of course, an idea is worthless unless somebody is willing to put it to use (the greatest movie in the world won't bring in a cent unless you get people to pay you to watch it). So we make all our ideas available to the world... for a price. And we have greatly bolstered our laws - and made clear our willingness to use force to defend those laws - to ensure that OUR ideas are not used without our receiving adequate recompense.

Except great ideas - the ones that bring in great wads of cash - are difficult to come by (Sturgeon's Law applies with ideas too) and while inspiration can be encouraged, it cannot be forced. So rather than depend on those rare strokes of genius, we ensure that even our less-stellar conceptions are protected the same way as the truly inspired ideas. Patents are increasingly granted on the most insignificant, inconsequential and mundane ideas because it brings in the money.

This is not to say there is some overreaching planned conspiracy; there was never a shadowy group of power-brokers chortling in some dark room as they moved the nation onto this new path. But America has always followed the path of money, and right now the big money is in intellectual property. Keeping its businesses strong makes strategic sense. Thus, we see an increased strengthening of certain laws (or weakening of others) to protect the interests of those businesses.

That's why there is little incentive to revamp the patent system, or bring copyright back down to sensible terms. It's why the American government is pushing so hard to enforce its copyright laws in other countries. It's why there is such a concern about copyright violations and why the Internet scares the people in power so much. American hegemony, they believe, is directly tied to how much intellectual property it owns, and how well it is protected.