Tuesday, October 09, 2012

The case against patents

This is good.

From the Federal Reserve Bank of St. Louis:

"Patent litigation typically involves dying firms, that have accumulated huge stockpile of patents but are no longer able to produce marketable products, suing new and innovative firms. A once proud firm – one of the first producers of microchips, and who in our generation can forget their first TI calculator – Texas Instruments was unable to make the transition to the PC revolution and became, for a while, the symbol of a dying company trying to stay alive by suing the newcomers. In more recent times, Microsoft has become the chief among the patent trolls."

"A system that at one time served to limit the power of royalty to reward favored individuals with monopolies has become with the passage of time a system that serves primarily to encourage failing monopolists to inhibit competition by blocking innovation."

"The current system favors a small number of blockbuster drugs that can be sold to millions of patients. The coming revolution in medicine will rely on carefully targeting hundreds or even thousands of drugs to the correct patients."

The Case Against Patents

HT: FT Alphaville

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