These are two good examples of the free market working to increase consumer choice, but they aren't that important for this case. The free market works perfectly when there are low barriers to entry. Opening a restaurant or a microbrewery are both (relatively) low risk ventures.
The real problem with cases like this is that there is enormous consumer desire for a product (and therefore high profit possibilities), but the barrier to entry is so large that it inherently stifles competition.
"Most patents issued are never litigated and never licensed," he said. "We need to focus on fixing the litigation system. That's most relevant."
I couldn't agree with Apple's counsel more.
Everyone seems content to blame the PTO for the problems in the patent system. The reason there are patent trolls applying for superfluous patents is not because they know they can sneak the applications through the PTO's inefficient, government run system. The patent litigation laws in the US are the source of the real problem. The massive potential returns on litigation make it economical for the trolls to exist, and, in turn, force the big companies to use their patents "like shields" against each other. One golden patent application in a 1000 is all it takes for a troll to pay for the fees associated with all of them.
Get rid of the trolls and unnecessary patents by making them uneconomical, not by forcing the PTO to hire PhD's. With a lower upside to litigation, every application that is filed must necessarily be of a higher quality in order to make it worthwhile economically.
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The real problem with cases like this is that there is enormous consumer desire for a product (and therefore high profit possibilities), but the barrier to entry is so large that it inherently stifles competition.
I couldn't agree with Apple's counsel more.
Everyone seems content to blame the PTO for the problems in the patent system. The reason there are patent trolls applying for superfluous patents is not because they know they can sneak the applications through the PTO's inefficient, government run system. The patent litigation laws in the US are the source of the real problem. The massive potential returns on litigation make it economical for the trolls to exist, and, in turn, force the big companies to use their patents "like shields" against each other. One golden patent application in a 1000 is all it takes for a troll to pay for the fees associated with all of them.
Get rid of the trolls and unnecessary patents by making them uneconomical, not by forcing the PTO to hire PhD's. With a lower upside to litigation, every application that is filed must necessarily be of a higher quality in order to make it worthwhile economically.