Ask Slashdot: When Is Patent License Trading Not Trolling?
LeadSongDog writes "A piece in yesterday's Forbes offers arguments on why not all 'Non-Practicing Entities' are 'Patent Trolls.' Comments here on such businesses are often critical. Is there a right way to trade in patents for profit without abusing the process?"
From the article: "The Founders’ decision to foster non-practicing entities and patent licensing proved crucial to America’s rapid technological progress and economic growth. Patent records from the nineteenth century reveal that more than two-thirds of all the great inventors of the Industrial Revolution, including Thomas Edison and Elias Howe, were non-practicing entities who focused on invention and licensed some or all of their patents to others to develop into new products."
Great example - just not for their cause.
I'm of the opinion that if you didn't create it, and your entity exists to do nothing than extort people for royalties on your patent ... you are a patent troll.
Lost at C:>. Found at C.
okay we have 3 different groups to deal with
1 inventor type that don't market anything (they invent and then sell to a Maker)
2 Makers that have on staff inventor types (they make stuff "with our patented..."
3 Leech types that just beg, borrow , steal and Buy patents (Holding Corps that only send bills around)
Trolls are type 3 not type 1
Any person using FTFY or editing my postings agrees to a US$50.00 charge
America is the country where you know that no matter how horrible and destructive someone's greed is, there will always be a news outlet to defend it.
More of less the article says that NPEs encourage innovation by allowing people to sell patents. Everyone agrees that patent trolls/ NPE by being willing to buy patents help to make having a portfolio of patents a valuable asset. That's not a point in question. The point in question is whether the damage NPEs cause exceeds the benefits of their funding since the money for those buys comes from lawsuits. And Forbes doesn't even attempt to answer that question. Lots of terrible things often have some side advantages that don't come close to covering the downside of the terrible thing.
Those patents covered actual working models, not taking something that already exists, slapping "Mobile" in the description, and suing small businesses that are using it.
This article is out to lunch and written entirely to benefit the patent troll industry (which now finds itself drawing unwanted attention).
-- "So they told me that using the download page to download something was not something they anticipated." - Bill Gates
A company should only be allowed to use a patent in court when it is active in the field the patent describes and the use of the patent by other organizations reduces the market potential of this company. Exception are research organizations of course, for which market value must somehow be redefined. A very effective troll-be-gone method.
Since a patent is a government granted privilege, if you don't market your patented device, you must allow somebody to do so at a reasonable price, set by the government, if need be. If you want to consider patents as property, let's levy taxes on it and use eminent domain where necessary. (See the Wright Brothers patent on lateral control of the airplane)
“He’s not deformed, he’s just drunk!”
The problem is junk patents.
Imagine you invent a device that pulls water out of the air for free (unlike anything cold, which will do it for $$$). Anywhere. Even in a desert. This is a great innovation. I have zero problem with you selling your patent to someone else. The problem I have is that right after you invent this, a horde of lawyers will storm the patent office and patent things like drinking water that came from your device. Watering a lawn with water that came from your device. Making beer with water that came from your device.
The problem is the ridiculous deluge of patents for trivial and obvious things. They litter the business landscape and make it impossible to solve any real problem without tripping over them as you solve 100 trivial problems in obvious ways along the way. Cuz you know, who ever would have thought that the optimal number of clicks to buy something in would be 1? That must have taken a talented team of web developer (singular) literally hours to do.
The difference between licensing and trolling is not actually highlighted in the article which is focused on the history of patent system in barely 200 words.
I want the five minutes of my life back.
Unsatisfied I'm off to av.com to search for real online debate on this issue.
Mostly the difference is real licencing has something useful people pay to use; trolling is trying to license something useful that people already use without paying: eg. when prior art exists from expert groups but the licensing costs are slightly lower than proving it in court.
There are firms who's business model is to hire very smart people to innovate, invent, research, develop, and then patent - with the hopes that some firm will license their IP - and do all the nitty gritty manufacturing and distribution work - and then pay them a fee. It's a perfectly logical arrangement - some are great at inventing while others are great at making and marketing.
Win/Win.
Then there are those who buy or acquire IP - many times very vague IP - with the sole purpose to extort via the legal system.
Acid test: are the principals of the firm JDs (Folks who sat for the BAR?) - Trolls.
Any IP firm run by or owned by lawyers are Trolls.
... is not that patents are bought and sold (this should be perfectly valid for valid patents). The real problem is that there are so many bad patents ... things that are not innovative at all ... things that don't fulfill the need to have a patent system. Once people start to understand what patents really are supposed to be, then we can solve the problem. It's not about trolls or software patents or things like that. It's about what justifies the government taking property rights away, and how that concept has been corrupted by corporations since the middle 1800's.
Read more ...
now we need to go OSS in diesel cars
Troll or not, electricity and the light bulb and such did not suffer the possibility of completely being made unprofitable and undeployable by Edison or Westinghouse. In the sense that they may not have practiced personally, you may have a point.
However, it is important to differentiate between the patent "trolls" of yesteryear, who were actual semi-inventors running shops that did research and generated inventions (even if they claimed all the credit for other's work), and the patent trolls of today, who are almost all strictly law firms with a different name who simply buy the rights off someone else and do their best to make that patent into a robber baron's toll bridge regardless of the damage that the use of the patent will do to the very market that the invention is trying to contribute to.
What if a bank, B, loans money to a startup, S, that is a small company where inventors have a few of their own patents, P. As part of the collateral for the loan, S assigns rights to B for the patents until the loan is repaid.
Startup S goes belly-up. The inventors blow through the cash and have nothing but the patents assigned to B.
B places S into receivership and sells rights to P.
By your definition of "patent troll", B and anyone buying rights to P are "patent trolls", but I don't' see it that way. If you wanted to remove all patent trolls, you will also make it almost impossible for a start-up company that only has intellectual property to get start-up capital.
Until 1880 this was not a problem.
Up until that point, there was a requirement of production of a working model, also known as a Reduction To Practice. After 1880, you could patent whatever, and get away with never having produced anything other than the speculation that your idea might be reduced to practice using some future engineering or technical ability which did not exist at the date of filing.
One common alternative method of patent reform is to bring back this requirement, and to place the model in escrow. In the limit, this permits future study of the model, whether it be hardware, or a process patent for software. This would incidentally remove patent protection from soft processes, such as business model process patents, which people tend to find very objectionable as abuses of the patent system.
In theory what a NPE does is actually quite admirable. You're an inventor and you invented something and you have a patent and big companies rip you off. They know you can't afford to fight them so they just do what they want. So you sell your patent to someone like Intellectual Ventures who goes after the big companies for you. Now no one can make your widget bolt without paying you, as it should be.
And look what's happened - even giant companies are scared shitless to defend against patent lawsuits. In that respect, the idea worked.
In practice though what happens is minute, even trivial things get patented and NPE's go looking for people to sue, using a byzantine series of shell companies and borderline gaming of the legal system. Whereas the inventor of the widget bolt has to make the exact specifications of how his bolt works open to the public (who could also just figure it out by looking at it) software companies don't have to make the source code of their patented inventions available to anyone.
NPE's to me are like the NRA or PETA - organizations/concepts which started out with noble intentions (responsible gun ownership, don't torture animals) and just strayed way off the mark.
Schnapple
What makes a troll a troll is the behavior of trying to get money from people for doing what they are already doing. There is no value add. A legitimate non-practicing entity, on the other hand, gets money by getting people do do something new that they were not already doing.
The distinction is clear and simple. If you approach me and tell me I need a license to do what I'm already doing, you're a troll. That's the only way to be a troll.
"Is there a right way to trade in patents for profit without abusing the process" - as long as it's not illegal, in a capitalist society somebody will find a more 'efficient' way to do things.
You patent things just to patent them and hope to eventually extort money from others as opposed to actually using said patent.
Don't let the ignorant convince you otherwise.
Trolling is when you great a broader patent in order to try to claim royalties on existing patents.
This nonsense about people trying to protect their rights, or license their patent, is trolling is a pile of crap.
Generally supported by anti tort groups(i,e, insurance companies) that want to strip inventors of their rights.
The Kruger Dunning explains most post on
Yes, most of his patents were put in his name, but that's not why he was evil.
1) A Patent Troll is a person or entity who tries to extort payments from any entity for utilizing a patented process or design that should never have been patented.
2) A patent holder seeking to receive compensation for the utilization of a patent shall not be deemed a 'Troll' if said patent holder is me.
Was NOT a great inventor. He was a businessman that took credit for his employees work. He also worked them like dogs, and lied to them. He may have been needed at the time to coordinate/etc, but that doesn't mean he should get credit for what he couldn't do.
Just read some of Tesla's notes about what happened, the guy was a total 'bag.
---- Booth was a patriot ----
Type 3a firms are good--they buy patents from inventors and seek out companies who want to bring in new ideas by buying or licensing a patent.
Type 3b firms are patent trolls--they buy patents and seek out companies already using the patent in order to extort money from them.
The problem is that in many fields (like software and computer design) there are simply so many engineers working on any given problem that it is almost impossible to avoid the simultaneous/independent invention of any given idea. In that environment, telling one inventor that he has to pay someone else because they did the paperwork first is an insult to his intelligence. This is compounded by the fact that so many ideas are either a) mathematically optimal, which anyone could derive and everyone wants to use, and/or b) part of an interoperability standard where licensing constraints reduce competition, derivative works, open-source tools, etc.
I'm not saying that Edison wasn't smart and didn't accomplish anything, but do keep in mind that in a lot of cases he just simply improved what others did before him, profiting off the heavy lifting that others did. He promoted things that weren't really all that good to begin with such as the current wars. It's known that he took credit for things that were actually done by people who worked for him. And finally, it's not well known today, but you can research how his motion picture patents put the early motion picture business under his total control and it took deliberate, illegal violations of his patents to get the movie industry established in Hollywood. In fact, one of the reasons Hollywood got started was to be completely on the other side of the US from Edison and thus in a place harder for him to control. If I remember correctly the US government eventually had a conversion experience and invalidated those motion picture patents when it became convenient for them to do so because Edison was basically using them to prevent all competition. Then again, maybe he is a perfect example for this kind of discussion but not because he benefited society but precisely because his goal was pure old greed and to use his patents to remove competition so he could make more money.
It lists Qualcomm as an NPE!?!?! WTF!?! I guess it's because they don't FAB the chips themselves.
Qualcomm sells chips THEY DESIGN using their IP, they just CONTRACT OUT the device to others to build. How is that NOT an Practicing Entity?!? They also license out their patents for worldwide standards (WCDMA) that they may not have any part in the manufacture of the devices that use that standard.
So by the Authors' definition of NPE, Apple is also an NPE because they contract the assembly of their I-devices to other companies and don't actually FAB their A7 processors?
Meh.
Layman's answer:
It's trolling when the party seeking to enforce their patent rights has no intention of selling an actual working implementation on the open market.
If the purpose of your company is to make money by licensing an idea, rather than selling a product or service that incorporates that idea, then you're a troll. The system shouldn't allow you to feed on other companies and individuals that are using that idea in their own products or services.
Nobody cares if an inventor sells a patent to a manufacturer or a service provider who will actually use it, that's how the system is supposed to work. But holding companies and the builders of defensive portfolios should have no place at the table.
Also, just because business has been conducted a certain way up till now, doesn't mean that's the best way to conduct business. Thomas Edison wasn't a saint, he ruthlessly exploited the inspiration and perspiration of everyone who worked for him and went to great lengths to crush his competitors. WE CAN DO BETTER, is the point.
When you have entities taking advantage of what you invented, and you have no choice but to involve the courts to force them to do the right thing.
Anything else is a troll.
---- Booth was a patriot ----
Perhaps you could explain why that difference is important? Both outcomes seem bad to me.
This is what some media commentators ignore when they try to tar all non-practicing entities with the same brush as abusive patent trolls.
NPEs (non-practicing entities) are people who don't manufacture products based on their patents, they just license the patents. Patent trolls are a subset of NPEs who abuse the patent system by blackmailing the public and companies with obvious, non-innovative and/or overly broad patents. The point being, not all NPEs and their patents are evil.
Rent seeking is not innovation.
No, they are rent seeking for the sake of rent seeking. If they wanted innovation they would produce something or seek out someone to produce the thing.
At some level, they have a point. It's not really patent trolls that are the problem - it's what's being patented. You couldn't sit on a patented idea and wait for implementations to appear before suing if ideas weren't being granted patents in the first place. Of course our corrupt political system isn't about to write unambiguous rules that disallow software patents or gesture patents or file format patents, etc. So cracking down on non-practicing entities is the only solution available at the moment.
I wonder if Forbes would weigh in on bad patents as strongly as they do in their reflexive support for trolls.
Posted from my Android phone. Oh, I can change this? There, that's better...
A Patent Troll is a term used by a practicing entity to describe a patent holder that tries to collect license fees, usually in a hostile fashion, for use of their perceived intellectual property. Instead of calling them a "Weenie" they're a Patent Troll. What we all have to realize is that history has numerous examples of NPEs and Inventors who created novel inventions but weren't necessarily the prime manufacturer involving the technology. Thomas Edison and Rudolph Diesel are two inventors that come to mind but there are many others. What's missing from the conversation is what is a novel invention and that's the crux of the matter. When you start allowing patents for icons and rounded corners that's not a novel invention and it's a glaring deficiency within the patent system that allows it. That's why I don't think you should focus on NPEs or Patent Trolls per sey, but should go back and say "What is patentable?" If software patents are valid, then they need to describe something that's not obvious and novel; they should have a limited life span, say 7 years to ensure that you don't have companies monopolizing whole sectors of technology because they were there first. If you raised the bar and reduced the life span of Software Patents, you'd then find a lot of tech R&D money freed up that's currently feeding lawyers
Harrison's Postulate - "For every action there is an equal and opposite criticism"
they just license the patents.
You make it sound like they hire a salesperson to go around and market their patent to potential customers. Or maybe you think the customers search for useful patents to license and then contact the inventor. Neither of these scenarios is common. What is common, is for the NPE to just sit on the patent, wait for someone to independently come up with the same innovation, and then demand payment. This is not contributing anything positive to the process.
And the cause of junk patents is the distorted economy of issuing patents. USPTO gets paid for every patent they issue, good or bad, yet are immune from lawsuits from the businesses they negatively impact by their bad behavior.
The term for this immunity is royal perogative.
A news outlet most likely owned by the greedy person in the first place.
Newsflash! All businesses are rent seeking. This does not mean rent seeking is illegal/immoral. A professional also seeks rent (salary) based on his knowledge and skill, but he has to put in additional labor himself to extract that rent, whereas business get that labor done with machinery and/or employees.
If you work as an employee and reuse the same knowledge and skills over and over again to perform your job, you are rent seeking. Businesses are just more efficient at rent collecting than employees.
Any company that tries to collect on using XOR to implement a cursor on a bit graphic screen with text is a troll, even if they filed the original patent. This is an example of non-innovation.
now we need to go OSS in diesel cars
Patent is based on the same constitutional clause as copyright. It is meant to promote the progress of science and the useful arts by granting temporary exclusive rights to authors and inventors. A patent held by someone other than the inventor goes against that. Grabbing a buck by stifling progress is what corporations that buy patents do. I am not aware of a single case where a corporation that bought out a patent promoted progress.
The Uncoveror: It's the real news.
Not all businesses are rent seeking. The grocer does not seek rent, nor is salary anything like rent. It is a simple exchange of time for money.
No, frequently it's owned by Rupert Murdoch or the House of Saud.
The obvious distinction is whether they invest a engineering effort in developing things. Most patent trolls just buy up patents and then try to turn them into money. Companies like ARM also don't make things, but the stuff that they license has obvious value: creating it independently from scratch would require a lot of time and money. Typically, these companies don't just license patents, they also provide detailed designs, engineering support, and so on.
I am TheRaven on Soylent News
Not all businesses are rent seeking. The grocer does not seek rent ...
If the grocer does not receive a minimum amount X per month (the rent) from his business to cover his business and personal costs, he will have to shut down his business.
...nor is salary anything like rent. It is a simple exchange of time for money.
Yeah, right. You forgot to mention the skills needed to obtain that salary. The job skills are learnt once and reused throughout the career. Skilled labor -- people collecting rent on supplying skills to customers through their employers. Why should programmers draw a salary of $30-$100/hr when burger flippers pull in only $7.50 or similar? It's about the skills the programmer possesses that allows him/her to be more productive than the blue collar worker.
http://en.wikipedia.org/wiki/Rent-seeking
Please read that. Rent is a specific thing, neither of those are rent. As they actually create wealth.
Of course, the person who invented the LASER would never have been able to gat a patent with Reduction to Practice, and last I checked, the LASER was pretty damn useful.
You are wrong about the laser. You need to read:
The Laser Odyssey
Theodore Maiman
ISBN: 0970292704
The original inventor of the laser almost lost out on his patent because he believed that there was still a "reduction to practice" requirement. The difference in the time to invention to reduction as a period of a bout 3 years.
Patents slowing down progress by discouraging use and hindering competitors is not new, but has been going on since the beginning of the patent system. The beginning chapter of Against Intellectual Monopoly details the case of the steam engine, where progress in efficiency and adoption of the steam engine was effectively halted for the duration of Watt's patents, only to take off right after they expired.
Once Watt’s patents were secured and production started, a substantial portion of his energy was devoted to fending off rival inventors. In 1782, Watt secured an additional patent, made “necessary in consequence of ... having been so unfairly anticipated, by [Matthew] Wasborough in the crank motion.” More dramatically, in the 1790s, when the superior Hornblower engine was put into production, Boulton and Watt went after him with the full force of the legal system. During the period of Watt’s patents the U.K. added about 750 horsepower of steam engines per year. In the thirty years following Watt’s patents, additional horsepower was added at a rate of more than 4,000 per year. Moreover, the fuel efficiency of steam engines changed little during the period of Watt’s patent; while between 1810 and 1835 it is estimated to have increased by a factor of five. After the expiration of Watt’s patents, not only was there an explosion in the production and efficiency of engines, but steam power came into its own as the driving force of the industrial revolution. Over a thirty year period steam engines were modified and improved as crucial innovations such as the steam train, the steamboat and the steam jenny came into wide usage. The key innovation was the high-pressure steam engine – development of which had been blocked by Watt’s strategic use of his patent.
The above is just a short section, they go through the case very thoroughly (with references), and it is worth a read. Interestingly, the steam engine is often quoted by patent proponents as an example of patents working like they are supposed to.
Upon the death of the patent holders, the IP will still be transferred to either personal estates or will be retained by their companies. Mafia-style hits will not gain the IP in this way.
The next step to turning a "licensing organization" into a legitimate business is to have it advertise its portfolio, in a market analogous to Programmer's Paradise, rather than remain silent until ambushing real businesses with threatened litigation.
Imagine if you got ads instead of C&D letters! "We hear you're working on nails for building houses in hurricane-prone areas. We can save you tons of expensive R&D and get you to market quicker if you license our patent that documents the measurements and manufacturing process for Hurriquake® nails."
No, they are rent seeking for the sake of rent seeking. If they wanted innovation they would produce something or seek out someone to produce the thing.
Which is the distinction the Forbes quote makes. Some NPEs license their patents to manufacturers and make money that way. Other NPEs don't license anything, they just sit there for a few years until someone comes up with a similar product on their own, and then sue them for patent infringement.
In other words, the group "patent trolls" is a subset of the group "non-practicing entities". On that basis, I fail to see what your problem really is.
.
And please stop with the "rent seeking" crap. Not everything boils down to Karl Marx.
If you think I voted for Trump because of this post, you're wrong. I voted for Dr. Jill Stein of the Green Party. Again.
What is wrong with the term rent seeking?
Adam Smith the father of modern capitalism used the term, do you have a problem with him?
Do you think Marx did not have an accurate critique of capitalism? He might have not understood history or been able to predict the future but his critique of capitalism was first rate.
Adding to this, companies like ARM provide even more than that. They research and design new equipment. That's the most important part, IMO. If there's a company that does a lot of research, and patents a lot of things, ala Bell Labs, then licenses out those patents, the company isn't trolling.
Newsflash - they did. By licensing it to someone who DID have the capability to produce it.
by putting in the labor, the professional is creating some amount of wealth, which is contrary to the definition of "rent seeking". If he weren't creating some amount of wealth, his employer wouldn't have any reason to pay him.
I have no problem with licensing of patents. What I find absurd is the notion of transfer of patents. If someone invents something they ought to be able to profit from it even if they don't produce. But what sense is there in allowing trolls to buy innovation rights from others?
"Patents: license them or lose them. No sales or transferes allowed." Soon as they make me king.
The term 'rent seeking' is archaic in modern monetary policy. It was from a time when very few people owned property, and therefor could charge someone 95% of their profit for use of land or a building. That is no longer the case. Many people own land. Even if a business owner doesn't own the land/building he uses, he is able to negotiate between many land owners to get a price that allows him to run the business and make a profit, while still putting food on his family's table.
Alternatively, a business owner with a little money built up can finance buying a piece of land, of the thousands of parcels available, with and without buildings.
So, do I have a problem with someone 300 years ago describing their contemporary situation accurately? No, I have no problem with someone doing so.
Do I have a problem with someone now describing their contemporary situation as if it is still the 1700's? Yes, I have a problem with that.
And on the mention of someone describing their contemporary situation as if it was the same as before, Karl Marx had many insightful ways of looking at business, labor, mankind, and society. He also abused that insight by pretending it was still the 1700s, and making up great scenarios that hadn't existed for decades.
I'm going through my copy of "Economic and Philosophic Manuscripts of 1844, Karl Marx", as translated by Martin Milligan and published by Prometheus Books in 1988, ISBN 0-87975-446-X. Marx quotes Smith extensively as a basis for the philosophy behind rent, and reasons for higher and lower values of rent.
Marx writes, "The rent of land is established as a result of the struggle between tenant and landlord. We find that the hostile antagonism of interests, the struggle, the war is recognized throughout political economy as the basis of social organization." (p. 55)
I wish I could quote the whole of his essay here, but it is too long to do so, and to complicated for me to abridge. Suffice it to say it is based on "feudal landed property", which hardly exists today, and for a large part was on its way out when he wrote about it.
If you think I voted for Trump because of this post, you're wrong. I voted for Dr. Jill Stein of the Green Party. Again.
A company can be a non-practicing entity in the sense of not producing an actual product and still be a valid and useful part of the economy if they are genuinely providing the know how that goes along with the patent. The quoted article makes reference to Thomas Eddison, and it is true that he primarily focused on actually inventing rather than building and selling his inventions. But (at least most of the time) when he licensed the patent he also provided the knowledge and advice needed to actually produce those inventions.
Todays patent trolls do not do that. They often don't actually know how to create the product in question or how to use the patent if some possible licensee actually wanted to pay for consulting. Instead they wait for someone else to build something that sort of looks like it might be covered by the patent and then sue. Eddison provided value to the world, they do not.
Software Engineering is pure logic, filtered through languages, APIs, etc. Given this problem and this desired outcome, there exists only a limited set of possible "logical devices" that will get there. In this sense, all programs are math, and thus should not be subject to patenting at all.
There is also the very blurry line between patents and copyright re software. Google vs Oracle comes to mind.
That' a bit of a stretch of the definition. Neither Edison nor Howe fit the common definition of NPE since they actively promoted their patents. In contrast, the NPE hides it in a deep dark corner and sits back until some poor slob steps in it.
Most NPEs don't even do the inventing, they just buy up patents from people too broke to ever get their patent into practice.
Did we pass an amendment that no one remembers? Patents are not part of the free market--they are the complete opposite conceptually. A patent is a limited monopoly enforced by government. Also the U.S. Constitution specifies the original author and no one else. There is no provision for trading or hoarding them, because they are not private property to dispose of at the whim of the applicant, much less a rights-less tax entity like a vulture capital corporation. And U.S. code doesn't supersede constitutional requirements, despite Disney's objections.
I think the USPTO should collect a $100,000 transfer fee every time a patent moves between owners other than the original author. All these patent disputes cost the taxpayer millions. I am all for punitive, predatory taxation of extra-constitutional activities.
You have a valid point. It's also worth noting that the NRA regularly supports bills requiring background checks, mandatory training to get a CHL, etc. Of course as you said they also have to watch out for slippery slopes.
MOST patent suits are filed by one of twelve companies. There are hundreds of companies who actively try to license their IP, like Arm and Bell Labs do.
The "good" scenario is in fact the common one. The bad scenario is the one you see covered on Slashdot.
Also from time to time Slashdot covers a story of proper patent use, but in a totally misleading way so as to make it sound bad. For example, last week we had the story of Cisco wanting to come to the rescue when a big bad patent troll was suing defenseless defendants. The big bad wolf in that case is a nonprofit organization and the "defenseless victims" are AT&T, Comcast, Level3, and Time Warner.
On a whim, and not being an economist, I decided to see what the term 'rent seeking' means beyond the common sense parsing of the words.
Sure enough, a quick look at wikipedia shows it is used to mean "an attempt to obtain economic rent, (i.e., the portion of income paid to a factor of production in excess of that which is needed to keep it employed in its current use), by manipulating the social or political environment in which economic activities occur, rather than by creating new wealth."
Just below that, is mentions the origin of the term, which is in line with what I posted in my response: "The term itself derives, however, from the far older practice of appropriating a portion of production by gaining ownership or control of land."
So, as far as I was ignorant of the meaning of the term, and assumed it referred more directly to the concepts of Marx and others before him, I was wrong to jump on h4rr4r about it. I apologize.
If you think I voted for Trump because of this post, you're wrong. I voted for Dr. Jill Stein of the Green Party. Again.
Most patent trolling is done using obscure "inventions" that barely (if at all) satisfy the criterion "innovative".
No, they are rent seeking for the sake of rent seeking. If they wanted innovation they would produce something or seek out someone to produce the thing.
Yeah, cos Dolby Labs, the example NPE quoted in TFA (you did RTFA, didn't you?) never innovate at all, do they?
This sort of "non-practicing entity" is actually better for innovation than many practicing entities, because they actively license to multiple parties, as it serves to get them greater profit. As a result, the invention is more widely available. Meanwhile, many actually practicing entities use patents far more abusively, more troll-like, than an NPE like Dolby Labs, using their patents to actively block other manufacturers from competing with them, stifling innovation.
Got them moderator blues I blieve I walk out the do', With these mod-points I been gettin', I 'most never post no mo'
I wonder if Forbes would weigh in on bad patents as strongly as they do in their reflexive support for trolls.
RTFA. The final line:
This is what some media commentators ignore when they try to tar all non-practicing entities with the same brush as abusive patent trolls.
They do not support trolls.
Got them moderator blues I blieve I walk out the do', With these mod-points I been gettin', I 'most never post no mo'
http://www.forbes.com/sites/harrybinswanger/2013/09/17/give-back-yes-its-time-for-the-99-to-give-back-to-the-1/ I'm sure nobody needed to point out a fantastic example, but I'm going to anyway. This article honestly pissed me off. I thought I had wandered on to The Onion, but nope, its Forbes. And yup, that was a %100 percent serious article.
Ever heard of the Fraunhofer Institute (of MP3 fame) or its sibling, the Max Planck Society?
These are dedicated research centers, partly financed by the tax payer. Their very goal is to invent and create patents and license them.
No need to apologize. I was rather confused when you stated it was an outdated term. I would have responded, but I was not allowed to by slashdot. Silly 30 posts in 4 hours limit. I agree the term is confusing to someone who is not familiar with it.
Not true. Variations of the first scenario are quite common. Your argument is circular. If you define "NPE" as an entity that engages exclusively in trolling abuses, then the only conclusion is that NPEs are abusers. It is certainly possible for a small inventor to create something new and valuable, but not have the resources to manufacture it. Here, the patent system allows the inventor to attempt to license the idea to a larger entity who is able to develop, market, manufacture, and distribute the resulting product. The fellow working in the office next to mine, e.g., is presently doing just that with a clever consumer product he recently patented. How is such a partnership an abuse of anything? And doesn't such a system promote innovation by encouraging an inventor to create a new technology despite the fact that she's just an average person with a dollar & a dream?
The term just brought that piece to mind, and how outdated its basis is nowadays. But the woman use coined the term "rent-seeking" in the 1970s should have used a different phrase, because it isn't about rent.
This article has a rebuttal I can agree with. http://www.econlib.org/library/Enc/RentSeeking.html
They use the term to describe people’s lobbying of government to give them special privileges. A much better term is “privilege seeking.”
Anyhow, thanks for the lesson, and have a nice weekend. (For myself, the Magic Pre-Release is tomorrow night. That's where my rent money is going this month. ;^) )
If you think I voted for Trump because of this post, you're wrong. I voted for Dr. Jill Stein of the Green Party. Again.