What happens in renewal years to licenses granted earlier? Do they get reset at the new rate or continue at the old one?
If they get reset at the new rate, the patent holder would have to essentially double the number of licensees every year in order to make a profit. If not, the patent holder would have to start out with a high license fee, try to snag some profitable licenses, then drop the rate in subsequent years for new licensees.
I think you're on the right track but please see my comment below for a simpler way of limiting licensing fees.
How about this: the inventor keeps a log of R&D hours spent developing the patent. A value is assigned to these hours at the going rate for engineering services in that field. Then, aggregate licensing fees for all licensees of the patent should be limited to a multiple (say, 20) of the amount expended on R&D. Once the limit is reached, subsequent licenses would be free.
The multiple would be arbitrary, but no more so than the current 20-year limitation.
Furthermore, independent invention by someone else without knowledge of the patent should not only be a defense in an infringement action, but also should be prima facie evidence that the patent was too obvious to be granted.
Slashdot Mirror
What happens in renewal years to licenses granted earlier? Do they get reset at the new rate or continue at the old one?
If they get reset at the new rate, the patent holder would have to essentially double the number of licensees every year in order to make a profit. If not, the patent holder would have to start out with a high license fee, try to snag some profitable licenses, then drop the rate in subsequent years for new licensees.
I think you're on the right track but please see my comment below for a simpler way of limiting licensing fees.
How about this: the inventor keeps a log of R&D hours spent developing the patent. A value is assigned to these hours at the going rate for engineering services in that field. Then, aggregate licensing fees for all licensees of the patent should be limited to a multiple (say, 20) of the amount expended on R&D. Once the limit is reached, subsequent licenses would be free.
The multiple would be arbitrary, but no more so than the current 20-year limitation.
Furthermore, independent invention by someone else without knowledge of the patent should not only be a defense in an infringement action, but also should be prima facie evidence that the patent was too obvious to be granted.