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90 Percent of Businesses Say IP Is "Not Important"

langelgjm writes "In 2009, the National Science Foundation teamed up with the Census Bureau to ask U.S. businesses how important intellectual property was to them. Now, after three years of surveys, the results are in. Astonishingly, it turns out that when asked, 90 percent of businesses say intellectual property is 'not important'. While some very large businesses and specific sectors indicate that patents, copyrights, and trademarks are important, overall, the figures are shockingly low. What's more, the survey's results have received hardly any press. It appears that formal intellectual property protection is far less important to the vast majority of U.S. businesses than some federal agencies, such as the patent office, are willing to admit."

185 comments

  1. Reminds me of spoilers by kruach+aum · · Score: 3, Insightful

    Most people don't care about spoilers, but people who care about spoilers REALLY care about spoilers.

    That said, it is an interesting result, and I wish it were more widely reported (and that it influenced policy, but oh who am I kidding).

    1. Re:Reminds me of spoilers by next_ghost · · Score: 1

      I think he means spoilers as in telling how a film/book/game ends to somebody who didn't see/read/play it yet.

    2. Re:Reminds me of spoilers by Anonymous Coward · · Score: 2, Insightful

      I'm pretty sure he meant spoilers as in "the stupid metal things people attach to the back of their cars in a failed attempt to make the cars look cooler".

    3. Re:Reminds me of spoilers by Anonymous Coward · · Score: 1

      It's meaningless, 90% of companies aren't innovators either, and as such would have no interest in IP. IP laws in turn, not surprisingly only benefit those who have IP to benefit from.

      What sector are these businesses in? It stands to reason retail companies, grocery stores, etc don't care much for IP as they don't tend to produce any.With this in mind, it'd be entirely nonsensical to base IP policy on these findings, and you're only kidding yourself by thinking otherwise.

    4. Re:Reminds me of spoilers by davester666 · · Score: 4, Funny

      hey. that helps makes sure I don't lose traction when I drive around town. it's not just for looks.

      --
      Sleep your way to a whiter smile...date a dentist!
    5. Re:Reminds me of spoilers by sirlark · · Score: 1

      Not strictly true. All companies have a brand. Brands are a form of intellectual property, and trademarks are the legal representation thereof. Almost every company has IP to benefit from, but most companies don't care because even if someone rips of "Joe's plumbing" brand, he's so small and has enough business anyway that it doesn't affect him. It will only affect Joe when when someone mistakenly sues him instead of "Jo's plumbing"... And this is an unlikely mistake, since the identity of a company isn't just it's name/logo, but it's contact details, physical address etc, when it comes to law suits.

    6. Re:Reminds me of spoilers by Anonymous Coward · · Score: 0

      So, people who don't use IP in their work don't care about IP. Surprising.

      I bet most businesses don't care about stock options either. Except, of course, those that are publicly traded.

    7. Re:Reminds me of spoilers by Dr+Max · · Score: 1

      It's not all that suprising. IP isn't important if you can buy hundreds of laywers. The problem is, it stops any small/new players (most likely not surveyed) from getting a good foot hold, because the big guys can drown them in court costs.

      --
      Rocket Surgeon.
  2. how get on internet then? by Anonymous Coward · · Score: 5, Funny

    a business not on internet will fail. everyone should call and get IP from local ISP

    1. Re: how get on internet then? by Anonymous Coward · · Score: 0

      IP, in this context, means Intellectual Property.

    2. Re:how get on internet then? by mellon · · Score: 1

      HAR!

    3. Re: how get on internet then? by Anonymous Coward · · Score: 1

      Nah, too obvious. It's probably referring to interactive polynomial time.

    4. Re: how get on internet then? by Anonymous Coward · · Score: 0

      No, it stands for "innovative products" which explains why so many businesses didn't consider them important.

  3. Shockingly? by Opportunist · · Score: 4, Insightful

    I'd say logically.

    When is IP important to you, as a business? If you hold patents and if you're heavily invested in R&D, and copyright is something that you care about strongly if you're creating content, be it music, movies or software. Else, at best, it's uninteresting to you. At worst, it is a headache to you since you always have to watch out whether or not something trivial you do steps on someone' patent toes.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    1. Re:Shockingly? by epiphani · · Score: 4, Insightful

      I work in the technology space, where we're heavily investing in R&D. And we don't own a thing - it's all open source, apache software.

      Fundamentally I think people are realizing that owning IP is a short-term strategy for many businesses. If the value you provide is entirely locked up in your IP - and not in your customer service and skills, eventually someone is going to come along with a cheaper or free version of your IP. Then your only advantage is the lock-in you already have.

      In the long term, companies have to function based on their ability to support their customers - not just throw IP at them. This is especially true in software.

      --
      .
    2. Re:Shockingly? by AK+Marc · · Score: 1

      Shocking is the logic. "Because Safeway cares about trademark, we need better protections on patents and longer terms for copyright." Those are the assertions being found with millions of dollars of taxpayer money spend to artificially support IP.

      When you exclude trademark, the number who care about "IP" becomes Hollywood, and not much else. It's just a rich and important "not much".

    3. Re:Shockingly? by kanweg · · Score: 5, Informative

      Patents/patent applications are open source knowledge before the term open source was coined. You are free to build on those ideas (and are free to take a patent on any non-obvious improvement, if you want that or not if you don't want that). Patent databases are freely accessible (as in beer); they may even have free machine translators so you can read the information in a language you don't speak. Want to know how something can be made, alternative ways of solving problems? Patent documents are your friend. No books to buy. No subscriptions needed. The documents are well-organized, in a standard format and can be searched using keywords from the comfort of your home. (You don't need to register and sell your soul to get the information you want.).

      The information in patents becomes freely available to the public in on average about 7 years (drugs take longer, other stuff shorter). No shitty near-infinite term like copyright.

      The applicant paid quite a bit to put an accurate description of the invention into words, and it becomes public after 18 months. That may be before the actual product hits the market. You couldn't have know about it otherwise.

      Bert
      Patent attorney (oh, and patents on software? Yes, I agree. They're a bad and unnecessary thing)

    4. Re:Shockingly? by Sique · · Score: 2

      When is IP important to you, as a business? If you hold patents and if you're heavily invested in R&D, and copyright is something that you care about strongly if you're creating content, be it music, movies or software. Else, at best, it's uninteresting to you. At worst, it is a headache to you since you always have to watch out whether or not something trivial you do steps on someone' patent toes.

      You should actually read the report. Then you would stumble upon such results as:

      Even when looking at a sector where one would expect heavy reliance on intellectual property, the results do not match expectations. For example, take one of the most copyright-dependent sectors we can imagine: “R&D active” software publishing. In 2010, 51.4% of respondents in this sector said copyright was “very important”; 34.6% said it was “somewhat important”; and 13.9% said it was “not important.” That is, only about half of respondents in a purportedly heavily copyright-dependent sector describe copyright as “very important” to their business.

      Or look at this:

      Overall, businesses report that trade secrets are the most important form of intellectual property protection, with 13.2% of businesses calling trade secrets “very important” or “somewhat important.” Trademarks are a close second, with copyrights and patents significantly farther behind.

      --
      .sig: Sique *sigh*
    5. Re:Shockingly? by tepples · · Score: 1

      If the value you provide is entirely locked up in your IP - and not in your customer service and skills, eventually someone is going to come along with a cheaper or free version of your IP.

      And if you're The Tetris Company, you go ahead and successfully sue that someone. Tetris v. Xio.

    6. Re:Shockingly? by Anonymous Coward · · Score: 1

      except that in practice, people writing up patents seem to see it as a challenge to make them as broad as possible, and have no qualms about patenting prior art; patent databases are searchable but it is damn hard to know if you're infringing. When they were invented (ha!), dissemination was slow, and knowledge comparatively localized. Patent databases don't serve as knowledge centers, more the other way around; those first things, combined with heavier penalties if you knew you were infringing, makes people *not* look at them for information.

      I get the original sales point; if you invent something you don't want some big corp with and existing distribution channel and way more development capabilities to go and steal your idea; but in practice, it seems to me that patents in their current form are way more damaging to progress and free markets than they are helping. And of course, there still isn't a decent solution to the problem that you *could* invent something entirely on your own, and still infringe because someone else happened to file a patent about it; similar inventions tend to happen independently at different places. The overly broad patents don't help; and neither do the incentives for patent offices ("more patents = good")

    7. Re:Shockingly? by Desler · · Score: 1

      When you exclude trademark, the number who care about "IP" becomes Hollywood, and not much else.

      The technology sector is run by Hollywood?

    8. Re:Shockingly? by argStyopa · · Score: 1

      Yes, sometimes I think the slashdot community is guilty of forgetting that the bulk of the world doesn't function in the somewhat-rarified air of "IT".

      The bulk of companies actually make something; in that case, it's a matter of people and machines: who can make it the best (most efficiently, highest quality, etc.), not about some 'secret recipe' that they need to hide from anyone else. Others serve people - forwarders, brokers, any service industry - again, a business where there's no secret recipe but a trade in knowledge, relationships, experience that's worth something.

      --
      -Styopa
    9. Re:Shockingly? by JoeMerchant · · Score: 1

      In the medical device space it's amazing how short a timeframe 20 years is. Lots of good ideas that are on their way to becoming obvious today still have decades before they can achieve commercial viability in the open market. Too bad (or good?) that med-tech doesn't have the kind of legal muscle that Mickey Mouse does.

    10. Re:Shockingly? by sakonofie · · Score: 1

      I thought the same thing initially, after all 1 IBM counts the same as 1 local coffee shop right? Of course most businesses don't care. But after digging into the survey's methodology details this 90% number is really bizarre. I suspect the actually number is quite a bit higher. By design, the companies they are strongly biased towards talking to R&D active companies. But the percentage of firms that don't care about IP among people that are actively invested in R&D is surprisingly high.
      Looking into the importance question on just utility patents it turns out R&D inactive companies overwhelmingly do not care. R&D active companies tend to care significantly more. And unsurprisingly some industries really do care. For Computer and electronic products with active R&D, 44% say these are very important, 21 somewhat important, and 34 not important. (For nonactive R&D not important rises to 88%.) That 34% not important surprised me.

    11. Re:Shockingly? by lgw · · Score: 1

      None of which matters in the long term. Patents just don't last that long. The fad in ridiculous patents for stuff like "exercising a cat with a laser pointer" was around 2000, and most of those patents will expire in the next few years.

      Yes, the patent office could do a better job in weeding out the obvious, but the problem is self-correcting. Sorry if not everything happens as internet speed.

      The problem with infinite copyrights is the "infinite" part, not the "copyright" part.

      --
      Socialism: a lie told by totalitarians and believed by fools.
    12. Re:Shockingly? by Anonymous Coward · · Score: 0

      Spot on... couldn't agree more.

    13. Re:Shockingly? by AK+Marc · · Score: 1

      Much of the technology sector doesn't care about IP. What I do in the tech sector would see no effect if copyright and patent were abolished tomorrow.

    14. Re:Shockingly? by Anonymous Coward · · Score: 0

      No, copyright is far more important to publishers, labels et.c. than it is to content creators. There are many ways to finance creative work without copyrights. Just look at kickstarter, patreon and more. Without copyright, hobby-publishing (piracy) may outcompete professional publishing.

    15. Re:Shockingly? by sjames · · Score: 1

      Yes, that year's patents will expire in another 4 years. Alas, they just keep coming. The individual symptoms eventually self-correct but the problem continues unabated.

  4. There is no such thing as Intellectual Property by Kleokat · · Score: 2, Insightful

    Thinking otherwise is counter-productive.

    1. Re:There is no such thing as Intellectual Property by Oligonicella · · Score: 1

      Oddly enough, your opinion on this matter is only an opinion.

    2. Re:There is no such thing as Intellectual Property by Anonymous Coward · · Score: 1

      That's a stupid answer....

      IP implies that someone can't use it unless giving you credit or some other payment. You're not allowed to know my password, but you are allowed to think up, your own password, which can be the SAME as mine, without you giving me credit or something.

      If people are designing something, in different places in the world, it is possible that more people are coming up with the same idea. But in an IP world the first one, want to get the money, and the rest has to pay.

      I don't care to invent something the first time, I just invent something when I need it. Which could be a few years later or 100 years later, before someone else invents it, why should I pay him for something I invented after him?

    3. Re:There is no such thing as Intellectual Property by bunratty · · Score: 1

      It doesn't seem that you know much about IP. The fomula for Coca-Cola is IP, and it is protected by trade secret. You can make up exactly the same formula, and the Coca-Cola company would not be able to stop you from selling the same product, because their formula is protected by trade secret. To allow inventions to become widely known, they can be protected by patent, which allow exclusive rights to an invention even though it is public knowledge. That's why patents exist -- to allow innovations to become public knowledge.

      --
      What a fool believes, he sees, no wise man has the power to reason away.
    4. Re:There is no such thing as Intellectual Property by Anonymous Coward · · Score: 0

      The fomula for Coca-Cola is trivially discovered using cromatography . . .

    5. Re:There is no such thing as Intellectual Property by Anonymous Coward · · Score: 0

      This is like the fat middle-aged slob ragging on how professional athletes are way overpaid and should be happy to make a working class salary for doing what they love.

      What about GPL enforcement? That's someone defending "intellectual property rights", although I'm sure that Stallman and the EFF would call it something else (the "Four Freedoms". Whatever, RMS!)

    6. Re:There is no such thing as Intellectual Property by Anonymous Coward · · Score: 0

      123456 is my password. I claim it. No one else can use it! It's my intellectual property and i will sue you if you use it.

    7. Re:There is no such thing as Intellectual Property by tomhath · · Score: 1

      Actually, there is such a thing as Intellectual Property. And it can be protected under the laws of most countries. Just because you want something for free doesn't mean you are entitled to it for free, sorry.

    8. Re:There is no such thing as Intellectual Property by gnupun · · Score: 1

      Thinking otherwise is counter-productive.

      To paraphrase the post demanding your password, all businesses claiming IP is useless and unimportant, please hand over your list of suppliers, and the prices at which you buy your raw materials/products from them. Also, we would like the entire list of your customers, the names of your employees, their job descriptions and salaries. It would also be great, if we could get detailed plans about all the products you'll be introducing next year

      I suspect most businesses have no idea what IP really means (other than patents and copyright). All their trade secrets are also IP. If they were to release their trade secrets, they would not have profitable business for long.

  5. Reason by mwvdlee · · Score: 4, Insightful

    90% of businesses are in fields that don't have the type of IP you see in new fields like IT.
    I'm sure a small, local bakery would care about IP too if he had to pay license fees for every bread he bakes, simply because his oven has a digital timer.

    --
    Slashdot social media options: AIM, ICQ, Yahoo, Jabber and Mobile Text. Why no MySpace?
    1. Re:Reason by Opportunist · · Score: 1

      Look at the bright side. It means that the economy is not as bad off as it could be, at least 90% of businesses out there still provide goods&services instead of trying to IP troll.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    2. Re:Reason by Luckyo · · Score: 1

      The point is that to most businesses IP is an expense. A harmful existence. Your example of bakery is a good one.

      Such companies are unlikely to be invested in the concept. It wouldn't be surprising if they were opposed to it in fact, as it increases their cost of doing business.

    3. Re:Reason by dbarron · · Score: 1

      However, if you asked the local baker for his recipes....I think you'd hear a different story.

    4. Re:Reason by mwvdlee · · Score: 1

      But if I invent the exact same recipe all by myself, he's not going to sue me.
      Nor does he have to do extensive research into patented and copyrighted recipe's before he can legally use his own recipe.

      --
      Slashdot social media options: AIM, ICQ, Yahoo, Jabber and Mobile Text. Why no MySpace?
    5. Re:Reason by Anonymous Coward · · Score: 0

      Most business people would say it was important if 14 of their neighbors opened identical bakeries with identical names selling the identical recipes that they sell.

    6. Re:Reason by ScentCone · · Score: 1

      I'm sure a small, local bakery would care about IP too if he had to pay license fees for every bread he bakes, simply because his oven has a digital timer.

      They might also care if, as a bakery, they decided to invest thousands of man hours in developing a new product or producing a series of books on new techniques, and then someone else who "doesn't care about IP" just ripped them off and started profiting from the other bakery's investment and creativity without having to do any of the hard work.

      --
      Don't disappoint your bird dog. Go to the range.
    7. Re:Reason by Sique · · Score: 1

      However, baking recipes don't fall under any legal protection. Also fashion is not protected by the law.

      --
      .sig: Sique *sigh*
    8. Re:Reason by kramerd · · Score: 1

      The bakery does have to pay license fees for bread, they are just built into the cost of ovens, yeast, eggs, milk, and so forth.

    9. Re:Reason by mwvdlee · · Score: 1

      The point is, they can still use that oven, yeast, eggs and milk to create bread. They don't have to pay some southern Texas company a license fee because they want to use a different speed on their blender, making it a patented recipe.

      The point is that in most of the business world, IP is treated a lot more reasonable. It's just the relatively new fields (IT, tech, bio) that seem to redefine the rules of what can be legally protected.

      --
      Slashdot social media options: AIM, ICQ, Yahoo, Jabber and Mobile Text. Why no MySpace?
    10. Re:Reason by Desler · · Score: 1

      Sure they do: trade secrets.

    11. Re:Reason by fa2k · · Score: 1

      Yes, this is not a surprise. quite possibly, 90 % of business say that IP as in the internet is not important either. There are many small non-tech businesses

    12. Re:Reason by Anonymous Coward · · Score: 0

      Yeah, he wouldn't want you to know that his recipe is "use standard mixture X from company Y, and maybe add a little bit of some specific ingredient to make it different. ;-)

  6. Of Course! by Anonymous Coward · · Score: 0, Insightful

    Well, of course 90% of business say intellectual property(IP) is not important. That's because 90% of businesses, or more, don't develop or produce products and therefore have no need to protect IP. Most businesses are distributors, retailers, or resellers. They don't design a new product and they don't manufacture anything. Furthermore, a good percentage of manufacturers don;t design the products that they manufacture either.

    But, if you are the inventor or designer of a new product, IP is absolutely essential to you ability to make a profit from your idea. If you can't protect your IP, then some third world mass production facility will essentially take your product away from you by mass producing it and selling it for a price that you cannot possibly match or profit from. Duh!

    I'm opposed to some IP stuff. Software patents, especially, are mostly ridiculous. But, the freetard mentality that all IP protection should be eliminated is ludicrous and clearly indicative of the fact that they themselves have never produced anything of their own.

    1. Re:Of Course! by Opportunist · · Score: 2

      Making content free will probably not be a good idea. But it would still beat the current situation.

      But either extreme is bad. We have to get back to an IP law that follows the idea behind them: To give people an incentive to create and to create a balance between those that create and those that want to enjoy that creation.

      Right now, the IP law fails in every of these aspects. It does not promote creation, since it allows an author to milk his success forever. Not only that, but also his heirs to do just the same. And please don't come with the "but a true artist will create even if he is rich already" argument. The same argument can be fielded for abolishing IP laws altogether.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  7. But IP also includes trademarks by langelgjm · · Score: 1

    But IP also includes trademarks, which in theory are relevant to virtually every business... unless maybe you supply a purely fungible commodity.

    That said, I think you're right. When I considered my experiences with small businesses (a cabinet shop and a veterinary hospital), I realized that not even trademarks were particularly relevant. There was simple no real danger of someone ripping off the name of the business... it wouldn't really make sense to do so.

    I'd love to see how politicians and government officials react when confronted with this kind of survey data.

    --
    "Anyone who [rips a CD] is probably engaging in copyright infringement." - David O. Carson
    1. Re:But IP also includes trademarks by Oligonicella · · Score: 1

      But IP also includes trademarks, which in theory are relevant to virtually every business...

      In theory, perhaps. In reality, no. Most small businesses do not need trademark at all.

    2. Re:But IP also includes trademarks by next_ghost · · Score: 1

      I'd love to see how politicians and government officials react when confronted with this kind of survey data.

      All you'll hear will be the crickets chirping. Politicians an government officials only react to surveys presented in the form of small green papers with pictures of former presidents on them.

  8. Survey specifically targets businesses doing R& by langelgjm · · Score: 4, Informative

    The problem with this logic is that the survey specifically targets businesses performing R&D. From TFA:

    "The target population for BRDIS consists of all for-profit companies that have five or more employees and that perform R&D in the United States.”

    --
    "Anyone who [rips a CD] is probably engaging in copyright infringement." - David O. Carson
  9. Because most people don't invent stuff by sandbagger · · Score: 1

    My example is this. In the automotive industry the car manufacturers make new intellectual property. Everyone else is in inventory, logistics, or repair. The same thing goes with software. Most people in technology are in the integration and configuration business.

    --
    ---- The above post was generated by the Turing Institute. Maybe.
    1. Re:Because most people don't invent stuff by Anonymous Coward · · Score: 0

      My company, (Lighting Industry) has a policy that any idea I come up with belongs to them, so if it isn't going to benefit me, then there isn't a real push to bring forth new ideas unless they just make my day easier.

  10. That sounds about right. by rmdingler · · Score: 1

    The 10%, however, care quite a lot.

    --
    Happiness in intelligent people is the rarest thing I know.

    Ernest Hemingway

  11. Summary left out "to them". by Oligonicella · · Score: 1

    Those things weren't important *to them* in their business, not that they thought those things weren't important. Big difference.

    1. Re:Summary left out "to them". by next_ghost · · Score: 1

      Those things weren't important *to them* in their business, not that they thought those things weren't important. Big difference.

      They actually asked the correct question to measure overall importance of intellectual monopolies to the economy.

  12. Gums up the narrative that IP is for everyone by langelgjm · · Score: 3, Insightful

    It is logical... unless you're the U.S. Patent Office, which claims that IP is responsible for 40 million jobs and 35% of the U.S. GDP.

    The survey results throw a wrench in the narrative that IP is critical to "the economy." It's clearly critical in certain industries, or for certain companies, but if 90% of businesses say its not important, blanket statements about how IP an economic "engine", etc. need to go.

    --
    "Anyone who [rips a CD] is probably engaging in copyright infringement." - David O. Carson
    1. Re:Gums up the narrative that IP is for everyone by Anonymous Coward · · Score: 3, Insightful

      It is logical... unless you're the U.S. Patent Office, which claims that IP is responsible for 40 million jobs and 35% of the U.S. GDP.

      The survey results throw a wrench in the narrative that IP is critical to "the economy." It's clearly critical in certain industries, or for certain companies, but if 90% of businesses say its not important, blanket statements about how IP an economic "engine", etc. need to go.

      90% of businesses saying X is important or not need to go then, they aren't premised on an analysis that demonstrates substantial rigor.

      For one thing, 90% of businesses doesn't correlate with the same amount of employment, it could be far less, same with GDP and other things.

      Get back to me when you're ready to show the whole data set.

    2. Re:Gums up the narrative that IP is for everyone by click2005 · · Score: 1, Insightful

      IP is only valuable & important to a business when it has enough patents to create a stranglehold in their sector.

      --
      I am a free slashdotter. I will not be modded, blogged, DRM'd, patented, podcasted or RFID'd. My life is my own.
    3. Re: Gums up the narrative that IP is for everyone by tsqr · · Score: 3, Insightful

      The owner of the local car wash (15 employees) doesn't care about IP. Ditto for the florist (3), bakery (5), and bar (4), or five other small businesses engaged in buying and selling commodities. But the CEO of the aerospace corp (4000 employees locally) with a huge annual R&D budget -- he cares a lot.

    4. Re:Gums up the narrative that IP is for everyone by Sarten-X · · Score: 1

      Quick calculations...

      As I recall, the US workforce is about 155 million people, so 40 million is about a quarter of that. That means 75% of jobs don't rely on IP, according to the USPTO. Per this survey, that figure is 10% of businesses. TFA notes that larger businesses are more likely to value IP, so it makes sense that 10% of businesses could employ 25% of employees.

      Not a very big wrench. To me, it looks like the figures likely corroborate each other. The message I get is that we shouldn't start panicking whenever we see a big number.

      --
      You do not have a moral or legal right to do absolutely anything you want.
    5. Re:Gums up the narrative that IP is for everyone by drinkypoo · · Score: 3, Interesting

      It is logical... unless you're the U.S. Patent Office, which claims that IP is responsible for 40 million jobs and 35% of the U.S. GDP. [...] if 90% of businesses say its not important,

      No. And also no. I mean, I'm as skeptical of the patent office's numbers as the next guy, but seriously. If I'm the guy who buys the solution, I might not think the patents are that important, because I'm not explicitly licensing them. I buy a product from someone who's licensed the patent, all that is abstracted away from me. But if I'm dependent on that thing, and the thing wouldn't have been created/marketed without a patent, then I'm dependent on the IP. The real question then becomes how much of this stuff would be designed, built, and sold even if anyone could build it. Some things clearly fall into that category, and there's probably plenty the USPTO is taking credit for there that they shouldn't.

      On the other hand, exports of American media are wholly dependent upon IP. If anyone could legally profit from copying your movie, then you wouldn't spend a lot of money making one. Whole classes of entertainment involving costly special effects would not exist at all. Clearly, there are industries wholly dependent upon it.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    6. Re:Gums up the narrative that IP is for everyone by ShanghaiBill · · Score: 4, Insightful

      IP is only valuable & important to a business when it has enough patents to create a stranglehold in their sector.

      Or any business that has an identifiable name. Your local "Quickie Laundromat" may say they don't care about IP. But if I open another business right next door called "Quickie Laundromat", and if I copy their ads and signs word-for-word, they might change their minds. IP is more than just patents. It also encompasses trademarks and copyrights. 10% say they care about IP. The other 90% don't understand what IP is.

    7. Re:Gums up the narrative that IP is for everyone by Sarten-X · · Score: 1

      Shouldn't post just after waking up.

      Per this survey, that figure is 10% of businesses.

      "That figure" refers to the 25% of jobs that do rely on IP.

      --
      You do not have a moral or legal right to do absolutely anything you want.
    8. Re:Gums up the narrative that IP is for everyone by JoeMerchant · · Score: 1

      But, how important are the 10% of businesses in the survey? Are they employing 90% of the workforce, are they producing 90% of GDP, how about export/import balance - what % of exports are produced by those 90% of US businesses which don't care about IP?

      There are lots of ways to spin numbers like these. I'm not surprised at all if 9/10 strip mall stores I pass don't have any interest in IP. I am surprised if even 20% of cutting edge, innovative global tech companies don't care about IP.

    9. Re:Gums up the narrative that IP is for everyone by JoeMerchant · · Score: 1

      IP is important for attracting investment.

      IP is important for ramping up product development and sales channels without hundreds of millions of dollars to ensure "first mover advantage" and potential returns for investors.

      IP is important to small businesses who play in big businesses' turf - at least they have a chance of getting bought out, instead of crushed outright once they've discovered, invented, or proven a new market's potential value.

      But, yeah, other than that, who cares?

    10. Re:Gums up the narrative that IP is for everyone by CastrTroy · · Score: 4, Insightful

      IP is only valuable if you can afford to protect it in court. I think that's the big problem here. If you own Quickie Laundromat, and another guy opens Quicky Laundromat across the street, you can either spend tons of money on lawyers trying to defend your business, or spend tons of money on better machines, or just try to keep prices low. Or try to compete on things that actually matter to customers, Maybe add free Wifi. If you make your business good enough, eventually people will figure out that the they Quickie Laundromat on the North side of the street is the good one. For businesses like this, it isn't the name that matters anyway, but the quality of service. You could call it "Don't Come To This Laundromat", but if you had better machines, cheaper rates, and better overall services, people will visit your business. For most businesses, defending IP would cost more than any profit it could possibly bring in, so it's just not worth worrying about it.

      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    11. Re:Gums up the narrative that IP is for everyone by Anonymous Coward · · Score: 0

      Whole classes of entertainment involving costly special effects would not exist at all. Clearly, there are industries wholly dependent upon it.

      They probably think that they rely on it more than they actually do. A huge part of their market doesn't give a shit about IP but buys their product because they are the first source for it. The counterfeit products usually lags a bit behind.

    12. Re:Gums up the narrative that IP is for everyone by VortexCortex · · Score: 2

      Get back to me when you're ready to show the whole data set.

      Hey, Genius, speaking of data sets, where's the data that shows patents and copyrights are beneficial for society? There are none. So, you're operating under an unproven hypothesis. Datasets, yes, indeed. Give me proof that the car will not kill me by testing them before we drive them, but oh, let's just plop the whole tech economy in the "IP" wagon and zip around without a care in the world, never bothering to think if this isn't an egregious risk of harm to progress.

      Why a wagon you say? Oh, that's easy. You see, the automotive industry isn't allowed copyrights or design patents, and yet sells primarily on design and is very profitable; Wouldn't want to be hypocrites, eh? Why am I nude you say? Ha! I'm wearing the IP Tzar's new clothes, because the very profitable fashion industry also sells primarily on design and they also have no copyright or design patents... heathens!

      NA na na NA na NANA NAAAAA I can't hear you! IP is Wonderful! Na na Na na I don't need any evidence for my beliefs, Show me YOUR data sets!

    13. Re:Gums up the narrative that IP is for everyone by swillden · · Score: 1

      Bah.

      Small businesses sue each other all the time. It's not that expensive to sue. It can be incredibly expensive if the parties choose to make it so, and if you sue a megacorp they'll either write you a check to make you go away, or they'll bury you in lawyers, which means you'll need your own big pile of lawyers. But when Quickie Laundromat sues Quickie Laundromat it doesn't cost very much. The parties do much of the legwork themselves to keep the attorneys' time (and bills) low, and they hire cheap lawyers.

      --
      Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
    14. Re:Gums up the narrative that IP is for everyone by Warhawke · · Score: 1

      No, you're missing the whole point of trademark law. Trademark law is supposed to protect against consumer confusion. Let's say the owner of Quickie decides to dump tens of thousands (businesses are expensive) into revamping machines, improving QoS, adding WiFi and a cable subscription, etc. I think this is a dumb assumption because you're assuming Quickie can even afford to invest in better business practices both in terms of start-up costs and in terms of margins based on revenue generated, but let's even put that aside. We'll pretend Quickie can out-compete Quicky through better business practices.

      Quicky, on the other hand, runs a dump. One of the machines electrocuted a guy and their dryers burn clothes. The place is a dump. People get robbed in the parking lot.Cynthia's friend Karl is new to the neighborhood and asks her, "Hey Cynthia, I need a good local laundromat. Know any good ones in the area?" She responds, "For the love of God, don't go to Quicky. Those guys are awful." Karl responds, "Quickie is that bad, huh? Okay, I'll avoid them." He then goes to Bumble and Tumble Laundromat a few blocks over.

      No matter how much Quickie improves its business, Quicky will always hurt their business by confusing customers into thinking that they are actually Quickie or into thinking that they are the same business. That is why trademark law exists, and protection is surprisingly affordable to most businesses. Registration is only $275 for federal protection. Quickie's battle is not the same as EA, and they don't have to spend the same gobs of money on lawyers and court fees. 1) It's not going to be litigated beyond the trial court, most likely; 2) there aren't gobs of corporate e-mails to pore through in discovery; and 3) the neighborhood IP attorney isn't going to be as expensive because he or she won't have to specialize in that form of law.

    15. Re:Gums up the narrative that IP is for everyone by Anonymous Coward · · Score: 0

      IP is only valuable if you can afford to protect it in court.

      Here in the UK you can enforce a trade mark in a small claims court these days. This has a few consequences:

      * You can do it without a lawyer.
      * If you prefer to hire a lawyer, they will often agree to limit their fees to those that are recoverable under the small claims limited costs regime, which means the entire process should cost no more than about £500 or so (which will be paid by the defendant if you win).
      * While you may end up paying costs if you lose, the costs you end up paying will always be limited to the same kind of value as above.

    16. Re:Gums up the narrative that IP is for everyone by sjames · · Score: 1

      It could actually be the best thing to ever happen to the good Quicky Laundry. People will go out of their way to distinguish betwen the good and bad Quicky. They will naturally exaggerate until the good one becomes the best laundromat they have ever seen and the bad one will be just slightly better than swimming in toxic waste.

    17. Re:Gums up the narrative that IP is for everyone by sjames · · Score: 1

      Keep in mind that as much as Hollywood likes to self-promote, they are a spit in the ocean from an economic standpoint.

    18. Re: Gums up the narrative that IP is for everyone by Anonymous Coward · · Score: 0

      in other words, IP is something that protects the big guys... who don't really need to the protection as they have the required economic mussle to protect themselves

    19. Re: Gums up the narrative that IP is for everyone by cbiltcliffe · · Score: 1

      You're focusing on the number of employees/company, rather than the number of employees/industry sector.

      There's only 1 aerospace corp with 4000 employees locally; but there are dozens of florists, bakeries, bars, and other small businesses that employ a LOT more than 4000 people locally.
      SMEs generate a significant amount more economic activity than large businesses, in virtually every geographic area.

      --
      "City hall" in German is "Rathaus" Kinda explains a few things......
  13. But the survey targeted businesses doing R&D by langelgjm · · Score: 2

    From TFA:

    According to the NSF, the Business Research and Development and Innovation Survey (BRDIS) “is an annual, nationally representative sample survey of approximately 43,000 companies, including companies in manufacturing and nonmanufacturing industries. The target population for BRDIS consists of all for-profit companies that have five or more employees and that perform R&D in the United States.”

    --
    "Anyone who [rips a CD] is probably engaging in copyright infringement." - David O. Carson
  14. Your rhetoric here by TheloniousCoward · · Score: 0

    Round up the usual "software patents are evil" suspects.

  15. Fuck off with your pseudo-intellectual crap. by Anonymous Coward · · Score: 0

    When the fuck did he ever claim that he does have an exclusive right to his password? Oh, that's right, HE NEVER MADE THAT CLAIM.

    OBSCURITY is not the same as OWNERSHIP.

    Passwords aren't registered with some central authority. There's no legislation giving him control over the use of a specific password by others. They are not intellectual property in any sense.

    You can use the same password for your account that he's using for his account, even if you don't realize it, and even if you do. There's nothing he can do to prevent you from using the same password as him. It's not property.

    For crying out loud, if you're going to try to form an argument here, at least make it cogent. Don't go off on a tangent spewing fecal matter that's without any basis whatsoever.

    1. Re:Fuck off with your pseudo-intellectual crap. by bunratty · · Score: 0

      Exactly. He claimed no exclusive ownership to his password. So he'll let me have it, rather than keeping it secret, as in a trade secret.

      --
      What a fool believes, he sees, no wise man has the power to reason away.
    2. Re:Fuck off with your pseudo-intellectual crap. by AK+Marc · · Score: 1

      He doesn't "own" it. You can have the same one, if you like. Good luck in guessing it.

    3. Re:Fuck off with your pseudo-intellectual crap. by Anonymous Coward · · Score: 0

      He claimed no exclusive ownership to his password.

      Correct

      So he'll let me have it, rather than keeping it secret, as in a trade secret.

      Incorrect, and non-sequitor. He claims no exclusive ownership to his password AND he won't tell you. Those two propositions are entirely compatible.

    4. Re:Fuck off with your pseudo-intellectual crap. by Qzukk · · Score: 1

      He claimed no exclusive ownership to his password. So he'll let me have it

      So that means you're going to give me the Golden State Bridge, right? Or are you claiming exclusive ownership of it?

      --
      If I have been able to see further than others, it is because I bought a pair of binoculars.
  16. IP is not Important by Anonymous Coward · · Score: 0

    Ip is not Important. Especially if you are still using UUCP.

  17. IP is only important if you are a patent troll by dtjohnson · · Score: 0

    Make of that what you will.

    1. Re:IP is only important if you are a patent troll by ScentCone · · Score: 1

      IP is only important if you are a patent troll ... Make of that what you will.

      It matters to me, and I'm not a patent troll. So what I make of it is that you are yourself a troll.

      --
      Don't disappoint your bird dog. Go to the range.
  18. Why is this surprising? by j.+andrew+rogers · · Score: 1, Interesting

    The vast majority of businesses have no significant branding to speak of, publish no significant media, and do no significant R&D. To put some perspective on it, there are more companies in the US than there are individual engineers and very few companies produce anything where copyright is central to the business.

    Most businesses are built almost entirely on individual customer relationships. Restaurants, contractors, specialty manufacturers, agriculture, etc. In all of these areas there are a few outliers that develop a substantial brand that they trademark but more often than not the "brand" is the individuals that work there or run the business so trademarks simply are not that important to their success.

    I think this is surprising to people only because most of the largest and most visible American companies do have substantial investment in IP, so it is an availability bias. It overlooks the myriad smaller companies that have little investment in IP. It would probably be fair to say that IP is important to a significant percentage of the American economy but only because it tends to be concentrated in many of the largest and most successful companies. It is not evenly distributed across all companies.

  19. Of course by sugar+and+acid · · Score: 1

    Lots of business are just in the business of selling stuff. So there is very little IP to be had.

    Similarly there is very little IP to be protected in the vast majority of services businesses. That's everything from dog walkers to hotel chains, law firms and banks.

    The building industry has very little IP as well apart on certain widgets used.

    That pretty much leaves high tech manufacturing, software, and something that is probably best describes as "media".

  20. Article is about R&D intensive businesses ... by MacTO · · Score: 4, Insightful

    While surprising, the results do make some sense. IP laws are only meaningful to companies that have the means to sue. They would also have to look at the return on investment for launching legal action. A small business on the east coast is unlikely to sue another small business on the west coast simply because there is no return (i.e. no overlap in potential clients).

    IP is mostly geared towards the interests of large entities and multinational entities: businesses that have both the means to sue, and where their market is large enough that it is likely to overlap with someone else's market.

  21. BS. They would mind a competitor using their name by raymorris · · Score: 2

    I'm still waiting for the pdf to download, but I can smell the BS from here. Does anyone really believe that most businesses wouldn't mind if a competitor misappropriated their name and opened a competing establishment with the same name across the street?

    Someone said that small businesses don't build a brand and don't care about their names (trademarks). I've owned a couple of small businesses and in two of those all of my customers were small businesses. For most small mom and pop businesses, the reputation attached to their trademark is EVERYTHING. They don't have national ad campaigns, their business comes from friends telling friends "go to ShoeDoc to get that fixed, they do a great job." If someone else opened a shoe repair place down the street and violated their IP by calling it ShoeDoc that would be a VERY big deal to them.

  22. Load of statistics by Anonymous Coward · · Score: 0

    The methodology used to determine the significance of IP to the economy relies on the assumption that a business that generates IP, views that IP as important to competitiveness.

    This survey undermines that assumption. So, we are left with the question, if IP is view as generally unimportant, why are these companies generating IP?

    Someone needs to ask this question in their survey.

  23. "Minding" and caring about IP are different by langelgjm · · Score: 1

    I'm still waiting for the pdf to download, but I can smell the BS from here. Does anyone really believe that most businesses wouldn't mind if a competitor misappropriated their name and opened a competing establishment with the same name across the street?

    No, no one believes that. However, apparently this isn't a big enough concern for most businesses to get them to respond that trademarks are "somewhat" or "very" important. I wonder how realistic the "You've Got Mail" scenario of theft of goodwill for the Shop Around The Corner bookstore actually is.

    For most small mom and pop businesses, the reputation attached to their trademark is EVERYTHING.

    Well, their reputation may be everything, but I'm guessing many businesses don't even bother filing a trademark registration. I think one of the takeaways from the survey may be that formal intellectual property protection isn't always valuable to most businesses, even though intangible things like reputation may be very valuable.

    --
    "Anyone who [rips a CD] is probably engaging in copyright infringement." - David O. Carson
    1. Re:"Minding" and caring about IP are different by TheVelvetFlamebait · · Score: 1

      I think one of the takeaways from the survey may be that formal intellectual property protection isn't always valuable to most businesses, even though intangible things like reputation may be very valuable.

      You do realise that trademark protection exists with or without registration, right? Registration confers additional rights to your trademark, but even without registration, other businesses are not permitted to imitate you.

      Therefore, even without taking the step of registration, there is still formal intellectual property protection, which the GP is correct in saying that businesses that trade on their reputation rely on. If a business wasn't able to have exclusivity over the name tied to their reputation, such a reputation would be very difficult to foster in the first place. It's easy to take things like the concept of a business's reputation for granted when we are so used to the idea of a trademark.

      --
      You know, there is a difference between trolling and pointing out the flaws in your reasoning. Just saying.
    2. Re:"Minding" and caring about IP are different by langelgjm · · Score: 1

      You do realise that trademark protection exists with or without registration, right? Registration confers additional rights to your trademark, but even without registration, other businesses are not permitted to imitate you... Therefore, even without taking the step of registration, there is still formal intellectual property protection, which the GP is correct in saying that businesses that trade on their reputation rely on.

      Yes, I've take several IP law courses. The problem with this logic in my mind, however, is that there is no way to directly trace the effects of formal protection to the empirical outcomes we witness in the world.

      E.g., you could say the same exact thing about copyright. Copyright applies whether you register or not, but registration confers important advantages. Does this mean that everyone who creates anything copyrightable "relies" on copyright?

      If a business wasn't able to have exclusivity over the name tied to their reputation, such a reputation would be very difficult to foster in the first place.

      That's obviously true, but it assumes that trademark law is the only thing providing exclusivity. Or to put it another way, it assumes that every competitor is waiting to jump in and rip off someone's name and image, and the only thing preventing them is trademark law. I don't buy into that logic for tangible property: I don't assume that everyone is planning to steal from me, and the only thing restraining them is the law.

      --
      "Anyone who [rips a CD] is probably engaging in copyright infringement." - David O. Carson
  24. TFA clueless, thinks Coke brand is worthless by raymorris · · Score: 2, Insightful

    The author shows their complete ignorance of how the economy works when they select GROCERIES as their example of an industry where they claim IP doesn't matter. Imagine if you were to walk into the grocery store and all of the cola made by different companies was labeled "Coca-Cola". It's trademark, intellectual property, that allows you to tell the difference between Coke, Pepsi, and RC cola. Were it not for IP, the generic stuff that sells for under a dollar would also be labelled "Coca-Cola".

    Do you think it's important to grocers that customers can distinguish Guiradelli and Hershey from Z corp "chocolate flavored bar"? Of course! The grocery industry is ALL about trademarks. The author proves they are completely clueless by claiming IP doesn't matter in the grocery business.

    1. Re:TFA clueless, thinks Coke brand is worthless by whoever57 · · Score: 1

      Do you think it's important to grocers that customers can distinguish Guiradelli and Hershey from Z corp "chocolate flavored bar"? Of course! The grocery industry is ALL about trademarks. The author proves they are completely clueless by claiming IP doesn't matter in the grocery business.

      Chocolate and other luxury goods are an exception. In just about every packaged product category in a supermarket, there is an "own brand" option, which the supermarket would much prefer you buy. Branding is important to the supermarket's suppliers, not so much for the supermarket itself.

      --
      The real "Libtards" are the Libertarians!
    2. Re:TFA clueless, thinks Coke brand is worthless by rts008 · · Score: 1

      It's trademark, intellectual property, that allows you to tell the difference between Coke, Pepsi, and RC cola.

      No, it is not.
      It is my nose and taste buds that tell me the difference.
      Lipstick(trademark) on a pig doesn' change the fact your still dealing with a pig.

      --
      Down With Slashdot BETA!!! I've been around the corner and seen the oliphant; you can only abuse me from your perspecti
    3. Re:TFA clueless, thinks Coke brand is worthless by devent · · Score: 1

      I think the original USPTO study was on purpose mixing all IP protection into one basked. Trademarks, patents and copyrights are vastly different laws. Anyone who just mix such different laws into one basked called "Intellectual Property" is just conflating them on purpose for their own agenda, in case of the USPTO to show how much important IP laws are.

      As the article points out:

              In 2010, 87.2% of businesses reported that trademarks were “not important” to them.
              90.1% of businesses reported that copyrights were “not important” to them.
              96.2% of businesses reported that patents were “not important” to them.

      this makes sense that trademarks are more important as you pointed out with the case of Coca-Cola. The article is on the point that it doesn't make sense to compare I.P. and pointed out the ridiculousness by showing that groceries stores are the most one to have a benefit from I.P. laws.

      --
      http://www.mueller-public.de - My site http://www.anr-institute.com/ - Advanced Natural Research Institute
    4. Re:TFA clueless, thinks Coke brand is worthless by Andreas+Mayer · · Score: 1

      It's trademark, intellectual property, that allows you to tell the difference between Coke, Pepsi, and RC cola.

      No, it is not.
      It is my nose and taste buds that tell me the difference.
      Lipstick(trademark) on a pig doesn' change the fact your still dealing with a pig.

      Yes it is. Because you can't taste every bottle of Cola before you buy it.

    5. Re:TFA clueless, thinks Coke brand is worthless by Theaetetus · · Score: 2

      It's trademark, intellectual property, that allows you to tell the difference between Coke, Pepsi, and RC cola.

      No, it is not. It is my nose and taste buds that tell me the difference. Lipstick(trademark) on a pig doesn' change the fact your still dealing with a pig.

      Yes it is. Because you can't taste every bottle of Cola before you buy it.

      So that's why the store manager keeps chasing me out.

    6. Re:TFA clueless, thinks Coke brand is worthless by Anonymous Coward · · Score: 0

      Distribution != production

      With fast moving consumer goods (an entire sector), most of the producer companies extract higher profits through be value-driven companies (in offering something intangible associated with customers ... see starbuck and fair trade coffee). But consider the percentage of firms (by employees) in the US who are in the distribution channel? There is it more oriented about logistics, service quality and if customer facing, response and social awareness. The latter falls into social capital and as a collective instrument (eg trust in the rule of law ... eg OpenSource) tends to be collective rather than proprietary. Factor in that most of the existing IP (industrial property) derived from Anglo-saxon land laws (real property) and evolved in an era of industrial revolution requiring large capital investments. From that perspective, IP is only a narrow subset of intangible personalty (legal rights) which are becoming more nuanced (eg celebrity rights).

      Sometimes it is not the answer that matters but how the question is phrased.

    7. Re:TFA clueless, thinks Coke brand is worthless by viperidaenz · · Score: 1

      So you're the guy who licks the bottles at the supermarket?

  25. local baker has IP by Anonymous Coward · · Score: 0

    And, I'm sure that local baker has house recipes and processes that they would rather their competitors not have. Trade secrets are IP.

    1. Re:local baker has IP by Sique · · Score: 1

      No. Baking recipes are not protected by the law. No one can sue me for using a gas chromatograph to figure out the recipe for food and then prepare the same food. Trade secrets fall within contract law, it's just a contract between two parties that they won't reveal the recipes to any third party.

      --
      .sig: Sique *sigh*
    2. Re:local baker has IP by drinkypoo · · Score: 1

      No. Baking recipes are not protected by the law.

      Sure, but if you discovered a previously unknown gastronomic technique for making some kind of odd food derivative, and it required the slightest bit of equipment, you could patent that, and have a restaurant with a [legally] unique food item. The process would be uncopyrightable, but patentable.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    3. Re:local baker has IP by Anonymous Coward · · Score: 0

      Trade secrets don't need contracts between two parties, it can be a secret known by only one party.
      Trade secrets are the cheapest and most common form of IP and the oldest of all, it doesn't require registration and it occurs spontaneously all the time someone has an idea that will give an edge over competition. The KISS (Keep It Secret Stupid) of IP.

    4. Re:local baker has IP by mwvdlee · · Score: 1

      You might be able to patent the specific bit of equipment if you had invented that too.
      Nobody would be stopped from making a bit of equipment that effectively produces the same result using a different bit of equipment
      If you're using a previously existing bit of equipment, you wouldn't be able to patent the recipe because it uses that equipment.

      --
      Slashdot social media options: AIM, ICQ, Yahoo, Jabber and Mobile Text. Why no MySpace?
    5. Re:local baker has IP by Desler · · Score: 1

      No. Baking recipes are not protected by the law.

      Go steal KFC's secret recipes and see how much they aren't protected by law.

    6. Re:local baker has IP by Desler · · Score: 1

      No, it is not "sure". Secret recipes are considered trade secrets and you can be sued for publicly disclosing them. And, yes, "trade secrets" are IP.

    7. Re:local baker has IP by radarskiy · · Score: 1

      "Baking recipes are not protected by the law."
      "Trade secrets fall within contract law,"

      So you admit they are protected by law. But you're still wrong, since trade secrets are covered under US Code Title 18 Chapter 90 which makes no reference to contracts.

      "No one can sue me for using a gas chromatograph to figure out the recipe for food and then prepare the same food. "
        Which is just like any other type of trade secret, where independently deriving the same information is not a violation of the secret.

  26. Re:Article is about R&D intensive businesses . by Anonymous Coward · · Score: 1

    It's also important to businesses that get sued. Mine got a couple strongly worded letters of how we allegedly infringed on patents. Next thing you know, we're patenting up our stuff to protect ourselves against other assclowns.

  27. Matches my limited mid-sized-company experience by dpbsmith · · Score: 4, Interesting

    I worked for over a decade at a midsized company, founded in the late sixties, whose business was the manufacture of $30,000-$100,000 high-tech products. The development process included internal firmware, quite a lot of interesting and non-obvious mechanical and optical engineering, and driver software.

    To say they were casual about intellectual property was putting it mildly. The mindset seemed to be, basically, that they copied good ideas from the competition and expected the competition to copy ideas from them. (I do mean IDEAS though, nothing more). They felt their business success depended on getting needed products to market in a timely way, and that it was all about good execution of ideas, not exclusive possession of ideas.

    All of us software people put copyright notices on our code because we just thought it was good practice, but nobody told us to do so or send out memos on how to do it or monitored us to make sure we were doing it right.

    I created a mini dust-up once when the head of marketing told me to send the complete source code to one of our software drivers to another company--a 200-age listing--and I said sure, but that I wouldn't do it without written directions from an officer of the company. He was furious that I would even question his directions and insisting that it was inappropriate for me to demur because it was no big deal, and I replied, sincerely, that I didn't think it was a big deal, either--in context it really wasn't--but that nevertheless I thought I needed to have that level of authorization, and that since it wasn't a big deal it shouldn't be hard to get it. It's not that he was being a PHB, either--the point is that nobody in the company quite got it that maybe you didn't just send out half a pound of listing on a casual say-so.

    For a while, there was one mid-level manager who liked patents and embarked on a semi-systematic effort to get things patented, and recognize engineers by posting framed notices about the patents that they had gotten--there were maybe about ten such frames on the wall by the time he left. But it was not part of the corporate culture.

    I don't remember ever hearing about the company suing or being sued over a patent except for one case, where it was embroiled as a party in a lawsuit involving some software components they had purchased and licensed from another firm.

    1. Re:Matches my limited mid-sized-company experience by Anonymous Coward · · Score: 0

      I created a mini dust-up once when the head of marketing told me to send the complete source code to one of our software drivers to another company--a 200-age listing--and I said sure, but that I wouldn't do it without written directions from an officer of the company. He was furious that I would even question his directions and insisting that it was inappropriate for me to demur because it was no big deal, and I replied, sincerely, that I didn't think it was a big deal, either--in context it really wasn't--but that nevertheless I thought I needed to have that level of authorization, and that since it wasn't a big deal it shouldn't be hard to get it.

      Generally it's sufficient to get your first line manager's direction in writing. Provided what they're asking you to do is not unlawful, they accept full liability.

  28. Re:BS. They would mind a competitor using their na by Anonymous Coward · · Score: 0

    I'm still waiting for the pdf to download, but I can smell the BS from here. Does anyone really believe that most businesses wouldn't mind if a competitor misappropriated their name and opened a competing establishment with the same name across the street?

    Someone said that small businesses don't build a brand and don't care about their names (trademarks). I've owned a couple of small businesses and in two of those all of my customers were small businesses. For most small mom and pop businesses, the reputation attached to their trademark is EVERYTHING. They don't have national ad campaigns, their business comes from friends telling friends "go to ShoeDoc to get that fixed, they do a great job." If someone else opened a shoe repair place down the street and violated their IP by calling it ShoeDoc that would be a VERY big deal to them.

    Don't confuse a trademark with a patent...

  29. You can't attribute all grocery employees to IP by langelgjm · · Score: 2

    The article doesn't claim that IP doesn't matter to grocery stores. It just points out that it doesn't make sense to attribute the entire employment figures of all grocery stores across the U.S. to intellectual property. Which is precisely what the Patent Office's report did.

    It may be fair to call grocery stores an IP-intensive industry, but if it is, that's a definition of "IP intensive" that most people aren't thinking of when they talk about patent and copyright policy.

    --
    "Anyone who [rips a CD] is probably engaging in copyright infringement." - David O. Carson
  30. You have a lot to learn, my friend. by Anonymous Coward · · Score: 0

    He knows more than you do, clearly.

    Trade secrets are not considered intellectual property in many jurisdictions. The differences from patents, copyright and trademark are quite clear. There's generally no registration of trade secrets. Their transferability is quite limited, if not non-existent. They do not share the same pseudo-tangibility that other forms of actual IP have.

    In fact, the concept of "trade secret" arises out of contract law, rather than intellectual property law. It's the act of disclosure, contrary to a previous agreement of non-disclosure, that is the issue in cases involving trade secret. Once the information is public, regardless of how this came to be, it is generally considered to be reusable without consequence by third parties.

    While some may ignorantly lump trade secrets in with intellectual property, trade secret is conceptually a result of the lack of, if not a complete rejection of, intellectual property rights. It arises because the parties involved resort to contract law to try to merely limit the dissemination of the information, rather than control it as a from of intellectual property.

  31. Re:BS. They would mind a competitor using their na by Anonymous Coward · · Score: 1

    Don't confuse a trademark with a patent...

    Don't confuse subsets of intellectual property for intellectual property as a whole.

  32. Businesses are not a monolith... by NicBenjamin · · Score: 1

    Pretty much the only thing they all agree on is that excessive taxes and unreasonable regulations are evil. Even then they don't actually agree on what that sentence means. The guy whose job is to sell coal thinks any carbon tax is excessive by definition and renewable energy requirements are inherently unreasonable. The guy who sells solar panels disagrees strongly.

    In this case what's going on is that your local yogurt shop doesn't give a shit about patents or copyright because it sells yogurt. They don't have patents or copyrights. They do have a trademark, but unless some other yogurt shop has recently moved in and adopted a similar name they probably don't think of their trademark as important to their business. And their one vote is as important as Exon's.

    It would be interesting to do a study weighting the response by the actual economic importance of the business. But that would be really fucking hard, particularly if you're only trying to tease out a couple aspects of IP law. The article mentions a government study that tried to do this, and criticizes it for including grocer's as important users of IP, but if you think about it for a second grocery stores use IP a lot more often then anybody else. If you're a geek obsessed with the IP implications of file sharing and the Samsung/Apple patent battles that sounds like ridiculous BS, but that's only because you aren't counting trademarks as Intellectual property. Coke is more expensive then RC Cola or the house brand for the same reason. Most people who buy Coke couldn't tell the difference between it and the house brand, but the grocery store probably charges double or triple for Coke, particularly if the House Brand is sold in 3-litre bottles. That markup is 100% due to the intellectual property of the Coca-Cole trademark. Yeah the music industry and software will use this trademark info to claim all Walmart associates will be fired the second that copyright is weakened, but that does not mean the government scientists were technically wrong for saying those Walmart associates are working for a business that is very dependent on the IP of trademarks.

    1. Re:Businesses are not a monolith... by viperidaenz · · Score: 1

      If most people can't tell the difference between Coke and house-brand, why do they pay a premium?

    2. Re:Businesses are not a monolith... by NicBenjamin · · Score: 1

      Convenience, and brand loyalty. The big soft drink brands make it really easy to buy their products, frequently paying for choice shelf space right by the exit. Moreover in absolute terms you don;t actually save much money if you buy the house brand because the worst price you'll see on a 2-liter is $2.50. Yeah the house brand may only be $0.50, but the $2.00 you save won't get you bus-fare in Cleveland.

      Coke brand loyalty has to be seen to believed. Large sections of thew country refer to any carbonated beverage as "Coke." In the early 80s Coke was losing taste-tests (and market-share) to Pepsi left and right so they changed the flavor to eliminate the distinctive bitter after-taste. There was a consumer rebellion, which didn't end until hated New Coke was removed from the store shelves and old Coke (now referred to as "Coke Classic") returned grocery stores throughout the land. And it's almost entirely based on that red label and being the brand you drank when you were kids:

      http://www.thrillist.com/drink/nation/blind-taste-test-ranking-9-classic-colas-from-mexican-coke-to-zevia
      Quotes from this taste's panel of coke-drinkers included "I like that, it's less chemical than the others."; "Sort of RC Cola-esque."; and "That flavor is brown." Again most of these people are Coke-drinkers, in a taste-test that they knew included Coke, were unable to tell which one was Coke. Coke made with cane sugar (aka: Mexican Coke) was referred to as Coke, despite the fact American Coke hasn't used cane sugar for decades.

  33. Not the size of your IP but what you do with it by EmperorOfCanada · · Score: 1

    I have 3 problems with today's IP. Most IP is completely obvious; the one click patent is 100% crap. Any web developer with 3 months training would stumble upon that as completely obvious if they were building a large online sales site. Things like patents and trademarks should be reserved for something innovative. Monster suing people for using monster as a synonym of big or great should be punished with their losing the trademark. There is definitely room for some patents and trademarks such as Xerox (completely made up). And inventing the transistor. But if someone invents a new way to generate light, nobody should be able to patent putting that into a flashlight.

    But even in music and books there should be much shorter limit on the copyright. It just seems bizarre that someone who came up with an innovative guitar riff 60 years ago should be able to go after some indy band who "re-invented" the same riff and worked it into their song. To me copyright should start wearing out in stages. The wholesale copying of say a song or book should have a fairly long lifespan. But works based upon it or derived from it should be fine even after 5 or 10 years.

    If you are looking for a simple historical precedent just look at Hollywood. Basically one of the main reasons they went out into the wild west to make movies was that movie technology was new and the patents were controlled by a few capitalist robber barrons who ruled east coast movie making with an iron fist. So people went out west and made movies where the federal government had far less control to enforce the dictates of east coast judges. Not only did an industry boom but free of IP they innovated and innovated. Stole the latest ideas from each other and everyone got rich.

    IP is not always bad but generally where the best IP is applied is when it protects the public. Is the drug you bought actually made by the original company? Is it even the drug you think you are buying? When I buy a HEAD tennis racket I don't want something crappy that is painted with the HEAD logo. But when IP only serves to protect the profits of the company such as MS being able to protect some obvious file system patent to keep Linux out of the market then it should be eliminated.

    People blah blah about China stealing so much IP. But the reality is that they have thrived doing so and if anything are probably laughing at us stupid westerners who have shackled ourselves to a few parasitical lawyers. Think about it. If every computer or robot innovation is locked up for 20 years then this might explain why we read about things in the science journals and then it stagnates for 20 years. A simple example would be 3D printing; a handful of key patents run out this year and I suspect that we will see a genuine 3D printing revolution that starts the week they run out.

    1. Re:Not the size of your IP but what you do with it by Theaetetus · · Score: 1

      I have 3 problems with today's IP. Most IP is completely obvious; the one click patent is 100% crap.

      Obviousness is a legal conclusion, like "guilty", and must be supported by evidence. You wouldn't throw someone in jail for murder because you have a gut feeling, would you?
      There was a $10,000 bounty for prior art that would invalidate the one click patent. Since you think it's total crap, why didn't you show your art and collect that bounty? Why didn't anyone? Why was there a reexamination conducted for that patent, with all of the art that the EFF and Slashdot and others could throw at it, that still confirmed it as patentable? Because, contrary to what some would have you believe, it's not a patent on clicking once. It's a patent on a specific implementation of a workaround for a shopping cart model.

      Any web developer with 3 months training would stumble upon that as completely obvious if they were building a large online sales site.

      And yet, large online sales sites existed for many more than 3 months before Amazon, and no one did it. Reality seems to contradict your gut feelings and hindsight.

      Things like patents and trademarks should be reserved for something innovative. Monster suing people for using monster as a synonym of big or great should be punished with their losing the trademark. There is definitely room for some patents and trademarks such as Xerox (completely made up). And inventing the transistor. But if someone invents a new way to generate light, nobody should be able to patent putting that into a flashlight.

      So transistors are patentable but light emitting diodes are not? Do you have a specific list of patentable electronics components and non-patentable ones, or is this just another gut reaction thing?

      But even in music and books there should be much shorter limit on the copyright. It just seems bizarre that someone who came up with an innovative guitar riff 60 years ago should be able to go after some indy band who "re-invented" the same riff and worked it into their song.

      They can't. The indie band must have actually copied the earlier guitar riff. It's right there in the name "copyright". For example, remember the Men at Work copyright suit over "Land Down Under" with that flute riff? The copyright owners of "Kookaburra Lives in the Gumdrop Tree" had to show not only that the riff was identical, but that Men at Work had previously heard it. If, by some random happenstance, you sat down and wrote Larry Snotter and the Wizard's Stone, a story about a boy wizard who was raised by non-magical foster parents and who gets brought to a magic school by a message from a flying owl, and you had been living in a shack in the woods and had never heard of Harry Potter, you would not be liable for copyright infringement.

      But yes, copyright probably shouldn't have the same term for direct copying as for derivative works and sampling.

    2. Re:Not the size of your IP but what you do with it by Anonymous Coward · · Score: 0

      Obviousness is a legal conclusion

      A self-serving conclusion in this case. Obviousness has a clear meaning which the legal profession and the PTO have chose to ignore.

      And yet, large online sales sites existed for many more than 3 months before Amazon, and no one did it.

      There are a host of reasons why something is not done. Non-obviousness is far down the list and the legal profession and the PTO's automatic and perpetual assumption that it is the only reason is telling.

      They can't. The indie band must have actually copied the earlier guitar riff.

      You're being ignorant. The space of possible musical tunes is small enough (it's been calculated) that numerous reinventions of tunes have regularly duplicated previous tunes.

      you would not be liable for copyright infringement.

      Not in the real world. Only after a substantial court case enriching the legal profession would it start to be possible and even then it's unlikely.

    3. Re:Not the size of your IP but what you do with it by EmperorOfCanada · · Score: 1

      But my key argument is that the entire patent and copyright system is almost entirely structured to benefit a very few. It also seems that the damage is far worse than the good it provides. But eliminating the patent system would be bad in that there are many cases where long hard risky efforts need to be rewarded. But stuff that you can conjure up in a 15 minute brainstorming session should not. So my key point is that the invention of the LED should be protected but the obvious idea that to put it into a flashlight should not be protected. If I tell you that I have discovered that you can make a tiny portable generator that runs on water and I patent only the generator itself, think of all the uses you can put that generator to. If you and your IP Lawyer are able to type quickly and live near the patent office then you will be able to patent all those ideas. So of course I will list all the probable uses of my impossible generator but if I miss one or something new like cell phones come along then you can potentially reap huge rewards. All you have to do is say in 1980, "I think these mobile phones might have a future" then run out and patent that use of the generator in mobile phones. This is not good because A parasitically gaining while not contributing to the greater good, and two you are actually harming the person who did by intercepting money that might have gone to the real inventor.

    4. Re:Not the size of your IP but what you do with it by EmperorOfCanada · · Score: 1

      Your last point is probably the most important point in this whole patent debate. That a the legal profession is the main benefactor of this whole IP protection scheme. Some companies think they can be bullies with their IP such as the MPAA but as we have seen their attempts to suppress competition through legal assaults on their own customers has only blown up in their faces. But the lawyers involved are getting very fat encouraging their customers that they don't need to change their business model if they just see these lawsuits through.

    5. Re:Not the size of your IP but what you do with it by Theaetetus · · Score: 1

      But my key argument is that the entire patent and copyright system is almost entirely structured to benefit a very few. It also seems that the damage is far worse than the good it provides. But eliminating the patent system would be bad in that there are many cases where long hard risky efforts need to be rewarded. But stuff that you can conjure up in a 15 minute brainstorming session should not.

      But that's the point of the patent system - it's not a reward for hard work, it's a payment in exchange for public disclosure. Look at it this way - say you make a revolutionary new invention, which, absent your invention, no one might come up with for another hundred years. We're talking about a super rare idea. You're going to tell everyone about it, and you'll probably win a Nobel prize and some other awards. We don't need to give you a patent too, because the public gets nothing out of it.
      But, on the other hand, say you come up with something that only takes you a day of hard work, and others might also come up with in a similar amount of work. If you keep it secret (which you might do, because it's such a "minor" idea), then everyone else has to re-invent it. So, if you've got an industry with a thousand competitors, that's 1000 engineers independently recreating the same invention, wasting 999 days of effort. But if you publish your invention, then the others can learn from it, and go on to spend their 999 days working on the next 999 inventions.

      Patents give you an incentive to publish your idea, and take away the disincentive by replacing your trade secret rights with another exclusive right. The public benefits, because by having you publish your idea, we don't have to waste time and money reinventing it.

      All you have to do is say in 1980, "I think these mobile phones might have a future" then run out and patent that use of the generator in mobile phones. This is not good because A parasitically gaining while not contributing to the greater good, and two you are actually harming the person who did by intercepting money that might have gone to the real inventor.

      Considering that someone else invented the generator and another someone else invented the mobile phones, then you can't get that patent. If A is known and B is known, then A+B is obvious by definition, unless there's some reason why A and B can't be combined.

  34. Trademarks and trade secrets by davidwr · · Score: 2

    For most companies, trademarks and trade secrets are much more important.

    The local bakery probably doesn't care about the copyrights on its secret recipes (yes, making and testing new recipes is a form of R&D). But if an employee pilfers them and leaks them to the competition, they would care very much that their trade secret was compromised. Likewise, if another bakery started using a nearly-identical logo or other "trade dress" in a way that caused confusion in the marketplace, they would care.

    --
    Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
  35. only after you buy it. Trademark lets you know wha by raymorris · · Score: 2

    You can only taste it after you've bought it.
    It's the Coke trademark on the bottle that allows you to know what it's going to taste like. Without trademark, all of the different sodas would be labeled "Coke" and all of the different companies making them would call themselves "Coca-Cola".

    There is a real life example of that here in Texas. A company in Elgin, Tx made great sausage and built a reputation for the best sausage in the state. If you were driving through Elgin on the way to Austin, you'd stop and get some "Elgin sausage". The problem was, you normally can't register your city name as your trademark. So four other companies opened up selling "Elgin sausage". Some of it isn't great. Most people no longer stop in Elgin because you never know whether you're getting the good Elgin sausage or not. The lack of trademark protection (because they chose a bad trademark) really hurt their business, and ruined customer's ability to pick up extra yummy sausage.

  36. They don't use networking? by Moskit · · Score: 1

    You know, that transmission thingy using IP.
    Internet Protocol.

  37. How important are those businesses? by Anonymous Coward · · Score: 0

    The vast majority of businessmen are not billionaires. Those who are billionaires probably consider IP important. This may be only coincidence...

  38. But results include companies not performing R& by Theaetetus · · Score: 1

    The problem with this logic is that the survey specifically targets businesses performing R&D. From TFA:

    "The target population for BRDIS consists of all for-profit companies that have five or more employees and that perform R&D in the United States.”

    Continuing in TFA:

    If you examine the details, the survey results begin to make more sense. Larger companies tend to report intellectual property as being more important; businesses designated as especially “R&D active” also place more importance on various kinds of intellectual property.

    And if you follow the link to the actual data tables in the report, you'll see that the various numbers pulled into the article - 96% say patents are not important, 54% in the "information" fields say copyright is not important, etc. - are all including the non-R&D active sets. If you do look at the target population that performs R&D, those numbers change, respectively, to 34% and 69% saying that they are important.

    More telling, go to the data chart for new or improved products or processes by businesses who performed or did not perform R&D. For companies that did not perform any R&D, 88% did not create or improve any products or processes. Accordingly, it's pretty reasonable to consider that they wouldn't see much value in IP over that time. For companies that did perform R&D, 65% created new products or processes, and that starts getting a lot closer to the percentage saying that IP is important.

    So, sure, depending on what numbers you cherry pick, you can "support" almost any conclusion, but you're not telling the entire story.

  39. Re:But the survey targeted businesses doing R& by Theaetetus · · Score: 1

    From TFA:

    According to the NSF, the Business Research and Development and Innovation Survey (BRDIS) “is an annual, nationally representative sample survey of approximately 43,000 companies, including companies in manufacturing and nonmanufacturing industries. The target population for BRDIS consists of all for-profit companies that have five or more employees and that perform R&D in the United States.”

    From TFA:

    If you examine the details, the survey results begin to make more sense. Larger companies tend to report intellectual property as being more important; businesses designated as especially “R&D active” also place more importance on various kinds of intellectual property.

    The survey is not confined just to the target population, as it includes non-R&D active companies.

  40. How often does this actually happen? by langelgjm · · Score: 1

    Your local "Quickie Laundromat" may say they don't care about IP. But if I open another business right next door called "Quickie Laundromat", and if I copy their ads and signs word-for-word, they might change their minds.

    Thing is, this survey probably suggests that your scenario doesn't happen that often. In your example, I'd suspect laundromats tend not to open up right next to each other unless there's adequate demand (e.g., next to a university). And even if they do, washing clothes is not a particularly differentiable product. Sure, maybe one laundromat has machines that always work and a change machine that is well stocked, and the competitor wants to trade on the good name of Quickie Laundromat... but that ruse is only going to work one time, if that.

    IP is more than just patents. It also encompasses trademarks and copyrights. 10% say they care about IP. The other 90% don't understand what IP is.

    TFA states that when directly asked about trademarks, "87.2% of businesses reported that trademarks were 'not important' to them." Perhaps most business owners don't know what trademarks are (though that seems a bit unlikely), or perhaps they just don't see value in the formal protection offered by trademark law. Instead they're probably relying on informal branding, reputation, word of mouth, the community, etc. There are certainly intangible aspects here, but they don't require trademark law to function. Trademark law helps deal with disputes, but perhaps those disputes are less likely than we might think.

    --
    "Anyone who [rips a CD] is probably engaging in copyright infringement." - David O. Carson
    1. Re:How often does this actually happen? by countvlad · · Score: 1

      But do they not happen very much because of IP laws in this country? How would this change if the US didn't provide companies with legal ways to protect themselves?

    2. Re:How often does this actually happen? by Anonymous Coward · · Score: 0

      Sure, maybe one laundromat has machines that always work and a change machine that is well stocked, and the competitor wants to trade on the good name of Quickie Laundromat... but that ruse is only going to work one time, if that.

      However a customer who has made bad experiences at the false Quickie Laundromat might as result avoid all Quickie Laundromat shops, including the real ones, because he can't tell the difference. And since bad experience tends to spread better than good experience, that might considerably harm the true Quickie Laundromat.

  41. 90% don't know what they're talking about by radarskiy · · Score: 1

    For IP to not be important, your business could not have any of these things:
    a name and logo
    a customer list
    a supplier list
    a product distinguishable from that of competitors
    a way of making a product distinguishable from that of competitors
    a plan for dealing with an employee absence

    The overwhelming majority of the comments here, either for or against, assume IP is only something you consume. IP is also something you produce.

    1. Re:90% don't know what they're talking about by Areyoukiddingme · · Score: 1

      Why do customer lists and supplier lists keep coming up in this thread? These are nothing but databases and databases can not be protected by anything. Their contents are not patentable, trademarkable, or copyrightable. In some cases there is case law to prove it. In other cases, it's black letter law. If your competitor gets a hold of your customer list without breaking and entering or hacking a computer, there's not a damn thing you can do about it.

    2. Re:90% don't know what they're talking about by radarskiy · · Score: 1

      a) The direct question was about intellectual property, not intellectual property protection.
      b) If you have intellectual property that you value but is not protected by law, you'd be interested on changes to law that would add protection.
      c) If your intellectual property in not in directly protected by law, you'd be interested in access controls that can be backed up by criminal charges, e.g. "breaking and entering or hacking a computer".

  42. Percentages that don't add up by Anonymous+Brave+Guy · · Score: 1

    As I recall, the US workforce is about 155 million people, so 40 million is about a quarter of that. That means 75% of jobs don't rely on IP, according to the USPTO.

    That doesn't follow at all. Just because 75% of jobs don't make their money from creating IP, that doesn't mean those 75% of jobs would be done as well, or even possible at all, without the creations of the other 25%.

    This is why the whole framework for this discussion is silly, really. Political considerations aside, as economic tools the various kinds of IP aren't there just as a boon to creative industries, they are there because having those creative industries be creative is valuable for others as well and so giving them incentives to to create is in the general interest of society.

    It doesn't surprise me that businesses that consume rather than create these works don't report that IP is important. If IP went away, their costs might go down, at least in the short term. That doesn't mean a small business of tradesmen who build houses for a living won't benefit from the R&D that leads to a more efficient building method, and thus benefit indirectly from any IP-based incentives that made that R&D economically viable.

    --
    If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
    1. Re:Percentages that don't add up by a_n_d_e_r_s · · Score: 1

      Actually the reverse is probably more true.

      The fact that 25% of jobs are claimed to be dependent on IP does not mean that those job will get lost if no IP existed. There is alot to suggest that most of those jobs would still be in demand even if IP does not exists. Because someone need to program that software. someone need to write that music and someone need to write that book.

      The business would change yes - but there still would be a demand for the products so how much loss in jobs would one see if all IP was no longer enforaceble ? And how many new business oppurtunies and new jobs would we not see if IP was abandoned ?

      Removing IP can lead to a world with even more jobs available then before.

      --
      Just saying it like it are.
    2. Re:Percentages that don't add up by Anonymous+Brave+Guy · · Score: 1

      Sorry, but I just don't buy this argument.

      You seem to be concentrating mostly on works subject to copyright now, so let's stick with that. Any fool with a bit of programming skill can create a basic game engine. Anyone with a basic command of their language and the slightest imagination can write a story, and anyone with a basic command of their language and some knowledge of a useful subject can write a textbook. Millions of people can play a bit of piano or guitar and make up a song.

      But creating a good game or writing a good book or producing a good musical performance take more than that. They take time and hard work, and a lot of it isn't glamorous, and a lot of it isn't particularly enjoyable but needs to be done anyway, and a lot of it isn't necessarily done by the author or musician or game designer who takes most of the credit at the end of the day.

      IMHO, the biggest advantage of economic incentives is that it creates a motivation for the editors and the sound technicians and the fact checkers and the typesetters and the hair and make-up people and the guy who drives all the props to today's set. Writers will always write and people who love music will always play, and plenty of them would do it even if they never got paid at all, and the good ones wouldn't need to worry because they'd get paid somehow anyway being the recognisable face of their work. However, there wouldn't be nearly as many good works without everyone else who works behind the scenes, and those are the people who would really lose out if copyright disappeared before some other economic model evolved to replace it.

      To me, Open Source represents the perfect example of what happens when you take away the major commercial incentives. Lots of geeks still write software for fun and/or the satisfaction of solving some problem. Some of that software is technically very good, because it's written by geeks who care about that sort of thing. On the other hand, poor to non-existent documentation is almost universal, user interfaces are often unpolished, many of the most successful OSS projects are merely imitations of successful commercial products rather than truly innovative alternatives, and ultimately the software is more driven by the needs or wishes of its creators than anyone else who might use it. There's nothing wrong with that, of course -- the world doesn't owe anyone their perfect software -- but the wider market isn't generally as well served by this model as by traditional commercial development where there is a direct financial incentive to give the market what it wants.

      And now, here's the kicker. The exceptions, the big success story OSS projects that are run more professionally and do produce more polished results on par with other commercial offerings, are mostly developed by people whose funding comes from other sources (often backed by commercial IP) and then shared with GPL-style licences that prevent others from taking advantage in certain ways (also protected by IP).

      --
      If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
    3. Re:Percentages that don't add up by next_ghost · · Score: 1

      IMHO, the biggest advantage of economic incentives is that it creates a motivation for the editors and the sound technicians and the fact checkers and the typesetters and the hair and make-up people and the guy who drives all the props to today's set.

      All of them are hired by the production company. They don't get any share of the copyright. As long as the film is made with decent budget, they'll get hired whether or not copyright exists.

      Writers will always write and people who love music will always play, and plenty of them would do it even if they never got paid at all, and the good ones wouldn't need to worry because they'd get paid somehow anyway being the recognisable face of their work. However, there wouldn't be nearly as many good works without everyone else who works behind the scenes, and those are the people who would really lose out if copyright disappeared before some other economic model evolved to replace it.

      Do you realize that the existence of current copyright-backed content industry leaves very little space for evolution of any alternative economic model? The copyright industry gets to set the rules for everybody else. Do you really expect that the challengers can win a game that's been rigged against them from the very beginning? Or is this just your way of saying "I want copyright to stay here forever"?

      To me, Open Source represents the perfect example of what happens when you take away the major commercial incentives. Lots of geeks still write software for fun and/or the satisfaction of solving some problem. Some of that software is technically very good, because it's written by geeks who care about that sort of thing. On the other hand, poor to non-existent documentation is almost universal, user interfaces are often unpolished, many of the most successful OSS projects are merely imitations of successful commercial products rather than truly innovative alternatives, and ultimately the software is more driven by the needs or wishes of its creators than anyone else who might use it. There's nothing wrong with that, of course -- the world doesn't owe anyone their perfect software -- but the wider market isn't generally as well served by this model as by traditional commercial development where there is a direct financial incentive to give the market what it wants.

      And now, here's the kicker. The exceptions, the big success story OSS projects that are run more professionally and do produce more polished results on par with other commercial offerings, are mostly developed by people whose funding comes from other sources (often backed by commercial IP) and then shared with GPL-style licences that prevent others from taking advantage in certain ways (also protected by IP).

      Any open-source software that's widely used in business environment reaches commercial quality pretty quickly. Simply because bigger companies that use it as mission-critical software usually assign somebody on full-time development, bug fixes and internal support. All the rest of open-source software suffers from very small adoption by the general public. Lots of independent open-source developers also don't even try raising money for developing their software which doesn't help either.

      But software world will be taken over by open-source software anyway because current proprietary software giants don't have the same power over the entire software market as Hollywood does over culture. Though the change will happen on office workstations before it comes to consumer desktops.

    4. Re:Percentages that don't add up by Anonymous+Brave+Guy · · Score: 1

      All of them are hired by the production company. They don't get any share of the copyright. As long as the film is made with decent budget, they'll get hired whether or not copyright exists.

      Those words "made with a decent budget" are where I have trouble with this argument. Of course the supporting staff are paid out of an overall project budget, but if anyone is free to copy and redistribute a work as soon as it's available, do you really think it's going to be worth investing the same scale of money in making it? I just don't think that is a credible position to take.

      Works like feature films could still make some money, of course, for example via cinematic release where your customers are paying for the experience and never have direct control of the material. But things like DVD/Blu-Ray and on-line distribution are dead, and those increasingly represent the bulk of the profits in the movie industry.

      Do you realize that the existence of current copyright-backed content industry leaves very little space for evolution of any alternative economic model?

      Nonsense. There is absolutely nothing about today's copyright landscape stopping someone from funding a new work via pre-copyright mechanisms like patronage. With the ability to crowdsource on the Internet, there are potentially interesting new options as well. And yet so far, the biggest successes from the likes of Kickstarter are still orders of magnitude smaller than Hollywood blockbusters or AAA games, and the closest example we have to major patronage is probably big commercial contributors to Open Source in the software world, which usually have self-interest as a significant motivation and then share the results because they have no reason not to.

      One of the most promising alternative models today is that a single creator or small group who know what they're doing can now viably go it alone and make real money by marketing and selling on-line. Old middleman services like book publishers and music studios are under a real threat of being out-competed by (or turning themselves into) service providers that work for the creative people, not the other way around. This is great news for returning the power and lost of the rewards to the people actually doing the creative work, and bad news for anyone who's been comfortably brokering deals but adding little real value for years. But this approach doesn't scale to large team, high production value, mass market products as it stands.

      Any open-source software that's widely used in business environment reaches commercial quality pretty quickly.

      For geek tools -- servers, software development, networking tools, that kind of thing -- sure.

      For mainstream business use, I contend that no Open Source software exists today that is widely used in business environments, and that the Open Source software that is used in small parts of the business world outside of geekdom is rarely of the same quality as traditional commercial alternatives and is chosen for other reasons. I hate coughing up for Office and Creative Suite as much as the next business owner, and I have a pretty low opinion of both Microsoft's and Adobe's recent offerings compared to what they've made in the past. Even so, the idea that LibreOffice and the GIMP are credible replacements for general business use is still as absurd today as it always has been.

      But software world will be taken over by open-source software anyway because current proprietary software giants don't have the same power over the entire software market as Hollywood does over culture.

      The proprietary software giants don't need the same kind of power. They make better products, and will continue to do so for a long time. Most of the people who would chose the OSS alternative were never going to pay the proprietary/commercial vendors for their product anyway, because piracy.

      This might change in the long term, but I'm not

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      If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
    5. Re:Percentages that don't add up by next_ghost · · Score: 1

      Those words "made with a decent budget" are where I have trouble with this argument. Of course the supporting staff are paid out of an overall project budget, but if anyone is free to copy and redistribute a work as soon as it's available, do you really think it's going to be worth investing the same scale of money in making it? I just don't think that is a credible position to take.

      Consider an alternative legal framework (payright) instead of copyright: When a movie (or any other work currently eligible for copyright) is released to the public, anybody would be completely free to copy and distribute it under the condition that he pays an unspecified share of revenue to the creator (production company etc.).

      In such system, it's impossible to stop somebody from distributing the work as long as he pays what he owes to the creator. In effect, big distribution companies will lose their power over production and the framework will spawn lots of distribution services competing among themselves. This will give end users much better products and creators will get money that the current copyright industry can't be bothered to even ask for (because they'd have to give up their fascist control of content in order to do so).

      Works like feature films could still make some money, of course, for example via cinematic release where your customers are paying for the experience and never have direct control of the material. But things like DVD/Blu-Ray and on-line distribution are dead, and those increasingly represent the bulk of the profits in the movie industry.

      As it is, if a movie doesn't break even on production costs during its opening weekend in cinema, it's already considered a failure by the entire movie industry. So I don't really see your point.

      Do you realize that the existence of current copyright-backed content industry leaves very little space for evolution of any alternative economic model?

      Nonsense. There is absolutely nothing about today's copyright landscape stopping someone from funding a new work via pre-copyright mechanisms like patronage. With the ability to crowdsource on the Internet, there are potentially interesting new options as well. And yet so far, the biggest successes from the likes of Kickstarter are still orders of magnitude smaller than Hollywood blockbusters or AAA games, and the closest example we have to major patronage is probably big commercial contributors to Open Source in the software world, which usually have self-interest as a significant motivation and then share the results because they have no reason not to.

      You didn't get my point. Creating the work in question is the easy part. The hard part is getting it to the audience and that's where the copyright-backed industry stands in the way. They control all the mainstream distribution channels and they get to say who gets distributed through them and under what conditions. This leaves independent creators locked out and fighting for tiny niche audiences. How do you suppose they get paid if they don't have an audience in the first place? For solution see payright proposal above.

      For mainstream business use, I contend that no Open Source software exists today that is widely used in business environments, and that the Open Source software that is used in small parts of the business world outside of geekdom is rarely of the same quality as traditional commercial alternatives and is chosen for other reasons. I hate coughing up for Office and Creative Suite as much as the next business owner, and I have a pretty low opinion of both Microsoft's and Adobe's recent offerings compared to what they've made in the past. Even so, the idea that LibreOffice and the GIMP are credible replacements for general business use is still as absurd today as it always has been.

      I agree that GIMP is still waaay behind Photoshop but I don't see any problem with LibreOffice ot

  43. Obligatory by Anonymous Coward · · Score: 0

    Ninety percent of ANYTHING is crap.

    - Theodore Sturgeon

  44. Re:Why the fuck is that +4, Insightful? by Anonymous Coward · · Score: 3, Funny

    A contextual explanation for GP's post can be found here.

  45. The realities of patents by Anonymous+Brave+Guy · · Score: 5, Informative

    I've recently been involved with the patenting process, at it applies in the US and Europe.

    In some respects, I was pleasantly surprised. The patent lawyer genuinely seemed to want to use the system as it was intended, do a good job of writing everything up, and secure some real protection for the inventors of something genuinely new and useful.

    In other respects, I was disappointed. I think the biggest downer for me was when we were formally advised that reading other patents in the field was potentially dangerous. Clearly the reality is that a patent lawsuit in the US is a very uncertain proposition for all concerned, particularly if the patent itself is of the broad-but-possible-not-enforceable variety and/or if the parties involved have substantially different resources to spend on the case. We were warned that having read anyone else's patents would mean if we were ever found to have infringed them in one of those uncertain lawsuits, that infringement would incur greater penalties as it would then be considered wilful.

    That seemingly minor detail did more to damage my belief that at least the principle of various kinds of IP is worth having than any arguments about awarding trivial patents for nonsense inventions with vague descriptions ever have. Perversely, the very people who would most benefit from being aware of inventions -- those working in the same industry, who might want to license them or otherwise collaborate with other inventors -- appear to have a substantial incentive not to actually explore the disclosed knowledge the system is designed to share.

    --
    If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
    1. Re:The realities of patents by swillden · · Score: 3, Informative

      In other respects, I was disappointed. I think the biggest downer for me was when we were formally advised that reading other patents in the field was potentially dangerous.

      IMO, the way to test whether or not the patent system is accomplishing its constitutional goal is to look at how much time practitioners spend looking through the patent library to find solutions to their problems, or ideas they can build upon, with the idea that it's better/faster/cheaper to find a developed patent and license it rather than do the hard work of inventing it yourself. If the patent database is heavily used as a research library, then it has accomplished its goal of contributing to the progress of the useful arts and sciences.

      Your comment is exactly what corporate attorneys have told me as well, and the fact that it's good advice proves that the system utterly and completely fails the test.

      --
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  46. Silly study by Anonymous Coward · · Score: 0

    What a silly study and one whose results are hardly surprising. Some 90% of businesses have nothing to do with IP. They don't create or make anything that's protected by IP. Similar studies would find what the FCC or FDA don't matter to their business.

  47. News flash by viperidaenz · · Score: 1

    businesses that deal in intellectual property care about intellectual property, those that don't, don't.

  48. moronic by Anonymous Coward · · Score: 0

    90% of US firms are hairdressers, grocery stores, plumbers, etc
    I mean, does anyone in their right mind think their plumber cares about IP
    Or has the money to get, let alone defend, a patent ?
    Or the knowledge to right decent, defendable, worth while claim language (if u don't know why this is important, the SHUT UP)

  49. It is important by PPH · · Score: 3, Interesting

    But if you think strategically important IP is going to be put into a patent, you're nuts. That just gives the competition a head start on working around the technology or business method. If I have a better way of doing business, I'm going to do my best to keep that to myself. Perhaps plant a few false leads and use some misdirection to keep my competitors guessing as to why we are so successful.

    So, when asked, I'm going to say, "No. No special IP here. Just lots of hard work, blood, sweat and tears."

    This is also one reason so many people are nervous about the NSA. You think Snowden was the only person making off with intelligence? It has been standard practice among various businesses (particularly those doing work in the military/intelligence area) to have a few buddies in intelligence agencies who can slip you some info. on what the competition is up to.

    --
    Have gnu, will travel.
    1. Re:It is important by swillden · · Score: 1

      IP isn't just patents. It also includes trade secrets, which is what you're talking about. Trade secret law puts some legal teeth behind your efforts to keep your ideas to yourself.

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  50. Re:99% of law firms say IP laws are important by Anonymous Coward · · Score: 0

    IMO
    and is there any reason to think your opinion is worth 2 cents ?
    I have found, that most people - perhaps not you- are pretty hypocritical: their attitude toward patents depends on which side they are sitting; if you own a valuable patent, you think one thing; if you are impeded by someone elses patent, you think another thing

    as to your non valuable opinion: in biotech, it can take years and millions of dollars to develop something.
    I should just let someone copy, and all my hard work is for naught ?
    why would people invest ?
    go educate yourself, and comeback

  51. Wow by Anonymous Coward · · Score: 0

    This is the reason business is so fucked up and no one gives a shit about the NSA

    people had to have been dumb monkeys who's DNA was fiddled with by ET intelligence - it's the only conclusion who man is so retarded.

  52. Yes, Meaningless by Jane+Q.+Public · · Score: 2
    This study almost certainly does not show what OP claims and what TFA implies.

    The survey asked whether IP laws were important to their business. Not whether they were "important", as in "important to society".

    That is a VERY major difference, and one TFA seems to have completely missed. In fact this appears to be an excellent example of "lying with statistics"... even if it wasn't done intentionally. It all depends on how survey questions were asked.

    For example, here's a quote from the NSF about this [emphasis added]:

    "Fifteen percent of all businesses reported trademarks as very important (6%) or somewhat important (9%) to their business in 2008,"

    I'll give you 99 to 1 odds that when asked this question, a respondent will think, "Well, my business is not involved in patenting, or trademarking, or any of that stuff, so no, it was not important to us in 2008."

    Which means, as I wrote above: this study probably does not show -- even a little -- what somebody is trying to claim it shows.

    1. Re:Yes, Meaningless by Anonymous Coward · · Score: 0

      Well, I'm sure most companies care about trademark law. However many might not have been aware that this is one of the many different things lumped together under the label "IP".

    2. Re:Yes, Meaningless by Anonymous Coward · · Score: 0

      Fair point, but then that begs the question: If IP laws are irrelevant to 90% of businesses, do they really contribute that much to society, especially considering the draconian penalties associated with them?

  53. Re:Article is about R&D intensive businesses . by tomhath · · Score: 1
    According to the report:

    the number one IP-intensive industry by employment in the United States was grocery stores.

    I suspect the number of grocery stores that have any IP is pretty small.

  54. Is Brand name recognition important to your compan by drcesteffen · · Score: 1

    Rather than ask if Intellectual Property is important. Is brand name recognition important to your business? Is marketing important to your business? Are brand names important to you as a customer? When you work, is it important for you to get paid? Is your company name important for your business? Should a company be paid more for higher quality products? Should a company be paid more for innovative products? Should a competing company be allowed to reverse engineer your product and market the exact same thing at the cost of manufacturing until you go out of business?

  55. Not surprising since 90% of advances by 10% by Anonymous Coward · · Score: 0

    This is not surprising at all. 90% of all human advancement is due to the 10% of humans. So it only follows that 90% of the companies are there to support the other 10% that do all the innovation, just like the rest of the humanity. More power to the 10%.

  56. Re:BS. They would mind a competitor using their na by Areyoukiddingme · · Score: 1

    'Intellectual property" isn't a whole. Patents, trademarks, and copyrights have nothing whatsoever to do with each other and only disingenuous lawyers try to claim they do.

  57. Real economy by manu0601 · · Score: 1

    It is nice to see that 90% of business are still primarily involved into producing goods or services, IMO most of the remaining 10% are pure parasites.

  58. green bills without president by Anonymous Coward · · Score: 0

    Hamilton on the 10
    Franklin on the 100
    Chase on the 10,000

  59. Re:Is Brand name recognition important to your com by Anonymous Coward · · Score: 0

    When you work, is it important for you to get paid?

    That question definitely doesn't belong into the list. Getting paid for working is (a) not an IP question (not even for those who sell IP; they don't get paid for their work, they get paid for the results of their work, which is a big difference), and (b) not applicable to businesses (businesses don't work, humans work in businesses).

    Should a company be paid more for higher quality products?

    Also this question doesn't belong to the list. Higher quality products are not related to IP, but to care.

    Should a company be paid more for innovative products?

    This is a clear NO. I don't want innovative products, I want useful products. If it is innovative in a way that it makes it more useful, then that's great. If it is innovative in a way that it doesn't affect usefulness, I'm certainly not willing to pay more for it. And if the less innovative product is more useful, then that one is the better product, period.

    Innovation is a means, not an end. Don't treat it as an end, because if you do, that usually makes your products worse.

  60. That's the next step by langelgjm · · Score: 1

    I'm actually planning on merging this survey data by NAICS codes with other data from the Statistics of US Businesses and Economic Census surveys to look at precisely these questions. It's not a huge amount of work to do this, but it's not trivial, either.

    FWIW, I was still surprised at the survey data in isolation... e.g., TFA notes that even if you look at a sector in which you'd expect people to say that IP is important (like software), only about half say that is important.

    --
    "Anyone who [rips a CD] is probably engaging in copyright infringement." - David O. Carson
    1. Re:That's the next step by Anonymous Coward · · Score: 0

      I've worked at IP based software firms, mostly, but I've also done some time with a SAAS house - and overall, I think there are a LOT more companies out there that are actually selling service, instead of unique software.

      Everybody likes to "pose" as IP creators because it pumps up the potential value of the company, but when you get right down to it, most places aren't doing anything unique - they're just grinding through the common problems that everybody needs to solve, or more often, maintain.

  61. Not correct by langelgjm · · Score: 1

    The survey is by definition confined to the target population of companies with 5+ employees and that "perform" R&D. However, they break down results and report by "all companies" as well as those that are especially R&D active versus those that still "perform" R&D, but not are not particularly R&D active. But "not active" does not mean not performing R&D at all.

    --
    "Anyone who [rips a CD] is probably engaging in copyright infringement." - David O. Carson
  62. Oops, you're right by langelgjm · · Score: 1

    I looked more closely, and I think GP is right. I was misled by the initial description in the survey, but in the data tables they note that R&D active company statistic "are representative of companies located in United States that performed or funded R&D," and the sample does in fact include some companies that have reported zero R&D.

    --
    "Anyone who [rips a CD] is probably engaging in copyright infringement." - David O. Carson
  63. Sure. Mostly because they don't make original stuf by jpellino · · Score: 1

    Most companies don't create IP. They move it, repackage it, interpret it, show it... But make it? Mostly no.

    --
    "Win treats sysadmins better than users. Mac treats users better than sysadmins. Linux treats everyone like sysadmins."
  64. R&D not necessarily relevant for (C) and TM by langelgjm · · Score: 1

    You're definitely right with respect to patents. However, I'm not sure the R&D Active/Inactive distinction matters as much for trademarks and copyrights.

    Trademarks are valuable to all kinds of companies, so for trademarks I think the relevant category probably is "all companies", not "R&D active" companies.

    Copyrights are more complicated. The survey explicitly excludes the development of most copyrighted products from the definition of R&D: "R&D also does not include literary, artistic, or historical projects, such as films, music, or books and other publications" (pg. 399). So there will be plenty of non-R&D active companies that stand to benefit significantly from copyright.

    But, their definition of R&D would include software development, which falls under copyright (and possibly patent as well). So with respect to copyright, it's not obvious which category of company (All, R&D Active, or non-R&D active) would be best to use.

    --
    "Anyone who [rips a CD] is probably engaging in copyright infringement." - David O. Carson
  65. 90 percent is shockingly low by Anonymous Coward · · Score: 0

    I'd expect 99% to be more realistic. There are few businesses who depend on IP.

    What subsection of businesses were they surveying?