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Re:The last patent on AC-3 (Dolby Digital) expires at midnight by dave_sullivan on Sunday March 19, 2017 @09:56PM (#13911139)
Honestly, I don't think there is a good argument for patents at this point. If your thing is truly groundbreaking, keep it secret. The reward for having great ideas and successfully productizing them is lots of money; why do there need to be patents (and effective monopoly protections) on top of that?

There's a decent argument for drug patents (drugs cost a fortune to develop; makers only recoup losses if they can mark up the cost of drugs massively; competition gets in the way of that), but I'd argue this is a better argument against the whole industry and an argument for more public funding of drug research.

If you can't make your business work without patents, I think that's a bad sign.

I don't think it's feasible to get rid of patents, but I think they could (and should) be made easier to challenge and invalidate, and there should be some restrictions to discourage patent trolls (what restrictions exactly is debatable).

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by coldtea on Sunday March 19, 2017 @10:55PM (#13911363)
>Honestly, I don't think there is a good argument for patents at this point. If your thing is truly groundbreaking, keep it secret. The reward for having great ideas and successfully productizing them is lots of money; why do there need to be patents (and effective monopoly protections) on top of that?

Because if anybody else can also "productize" your idea, then it will in all probability be others that will make the money (especially if they are much larger than your company, can market more, have economies of scale, connections with retailers, etc.). So you get no reward at all for your idea, or a vastly diminished one.

People wont buy from you just because you had the original idea.

And of course "keeping it secret" AND selling it is usually not an option at all.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by fsloth on Monday March 20, 2017 @03:19AM (#13912367)
"So you get no reward at all for your idea,"

Idea's are a plenty. It's the correct productization that adds value. So - the correct fairness proposal is that the product development efforts to create a viable first example of a product category don't go to waste.

It's very easy to botch up the execution of a new idea into product. That's why it's not very good idea to trust historical specific examples to proof something does not work - maybe they just botched it. Now, when the first working example hits the market place competing players recognize that the method -in fact - can be implemented and have a bread crumb pathway lead ahead of them for viable product.

Now, the product development effort of competitors to reach market may not be any easier despite the breadcrumbs, but the initial product development had way higher risk because of no breadcrumbs to follow - and thus it's fair they should get higher return of investment for a while.

This is not to say the current implementation of patents is not messed up. It's quite telling that quite a lot of industrialization happened globally because people managed to ignore existing patents and implemented effectively industrial espionage to copy machinery. At least the world economy went ahead in leaps and bounds.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by coldtea on Monday March 20, 2017 @05:04AM (#13912692)
>Idea's are a plenty. It's the correct productization that adds value.

That's for common ideas. "Let's make a Facebook for dogs", "dollar shave club", etc. But those are not patentable in the first place (and if they are in some country, they shouldn't be).

Here we are talking for invention ideas. Which are not plenty, and which often require not just insight that billions couldn't manage to have (the invention of the carriage wheel -- which the pro-Columbian population of the Americas managed to miss, even though they had wheel shaped items for other uses), but also millions in R&D (e.g. to design. build, make efficient to mass produce and test a new kind of plane engine or a more efficient battery).

In a lot of those cases where the invention scratches an itch there's very little "correct productization" needed. If you make a better battery material for example, you just sell it like everybody else sells batteries (plus some marketing for its longer life). Some things literally sell themselves.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by ska on Monday March 20, 2017 @10:40AM (#13914574)
I'm not unsympathetic to this view point, but you are talking about a tiny, tiny fraction of the patents in the system. I'd WAG it at on one-thousandth of a percent, tops (while acknowledging the difficulty of measuring this).

So if the vast majority of the work being done is fundamentally different, does it make sense to set policy based on the outliers? The work of the patent office is almost entirely focused on "common ideas".

NB: I don't know the answer to this, just pointing out the difficulty.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by nxtrafalgar on Monday March 20, 2017 @05:37AM (#13912806)
So if the premise is that ideas are not patentable and inventions are, then what makes an audio codec constitute an 'invention'?
Re:The last patent on AC-3 (Dolby Digital) expires at midnight by spacemanmatt on Monday March 20, 2017 @09:48AM (#13914148)
Codecs, as expressions of abstract ideas (mathematics, primarily), SHOULD be ineligible for patent. Nothing physical about anything necessarily involved in the implementation of a codec is novel these days, except the algorithms, and they're patently (badump-bump) ineligible.

But judges and PTO examiners have been getting it wrong so long they don't even know what's right anymore. But the letter of the law is quite clear and the SCOTUS is starting to come down harder on the side of the law, especially since rulings like Bilski.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by Karunamon on Monday March 20, 2017 @11:38AM (#13915061)
I'm torn on this. Let's say you cook up a codec that allows for unheard-of levels of fidelity at unheard-of small file sizes. (Think PiedPiper levels of awesome).

Generally, I'm against software patents due to their easily abused nature (to the point where I think sacrificing all software patents would be a net benefit), but I find it very hard to argue that the person who came up with that codec shouldn't be able to patent their invention. Yes, it's math at the end of the day, but it's still novel math. Putting existing things together in actually novel ways should be patentable.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by spacemanmatt on Monday March 20, 2017 @12:19PM (#13915382)
I'm against software patents for the same reason I'm against patents on things that are mathematics. Note, I've said "are" and not "like." Calling a mathematical formula, concept, or algorithm something else (e.g. "codec" or "my life's work" or "Fraunhoffer's intellectual property" does not make it more than math, and most certainly cannot serve to reify the abstract subject matter. Nowhere in the rules of eligibility is novelty contemplated as an exception to exclusions of abstract concepts and phenomena of nature.

Novel math is still abstract, and as such, strictly ineligible. Software is the same, in that it is purely abstract. It will take time for the courts to catch up to reality, but they have trended in that direction.

Whether I agree or not that, as you say, "...novel ways should be patentable." they are, by the letter of the enacting law, ineligible.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by Karunamon on Monday March 20, 2017 @12:26PM (#13915444)
You're talking about the law, I'm talking about the principle that underpins the law and what the law should be as a result. These are two separate topics.
Re:The last patent on AC-3 (Dolby Digital) expires at midnight by spacemanmatt on Monday March 20, 2017 @01:04PM (#13915770)
I am also saying I agree strongly with the law's straight-forward stipulation that abstract material is ineligible. There's no justification for letting someone patent things just because they went to a lot of trouble to find or create something obscure, if it is entirely imaginary (abstract) or part of nature.
Re:The last patent on AC-3 (Dolby Digital) expires at midnight by spacemanmatt on Monday March 20, 2017 @01:08PM (#13915807)
How would you allow for novelty without opening the door to patenting a novel new application of integer math or gravity?
Re:The last patent on AC-3 (Dolby Digital) expires at midnight by coldtea on Monday March 20, 2017 @07:24AM (#13913194)
>then what makes an audio codec constitute an 'invention'?

That it involves not just some singular "let's do an X" moment, but tons of math, hard work, novel techniques for better compression, faster decoding, etc?

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by TheOtherHobbes on Monday March 20, 2017 @07:11AM (#13913142)
A detailed, original, reproducible, non-trivial specification of the algorithm used.

I think you'll find this takes a little more work than "Hey, wouldn't it be great to make audio files smaller?"

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by jakubp on Monday March 20, 2017 @02:41AM (#13912219)
Perhaps it's a mistake to reward people just for good ideas.
Re:The last patent on AC-3 (Dolby Digital) expires at midnight by srtjstjsj on Sunday March 19, 2017 @10:14PM (#13911216)
> why do there need to be patents (and effective monopoly protections) on top of that?

It's explained here:

https://en.wikipedia.org/wiki/Copyright_Clause

"To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries."

It's to avoid free-riders copying an invention after someone else researches the related dead ends.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by dave_sullivan on Sunday March 19, 2017 @10:28PM (#13911271)
I understand the argument, I just don't think it "promotes the Progress of Science and useful Arts". If you were to remove patent protections, the progress of science and useful art would not suddenly take a nose dive. In fact, I'd go as far as to say that patents stifle progress in art and science.

Also there's a big distinction between copyright and patents. You don't hear about copyright trolls as often; it's not as crippled of a system.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by taneq on Sunday March 19, 2017 @11:09PM (#13911401)
You'd get a short term boost, with a flurry of activity around the suddenly freed patents, leading to a lot of incremental work.

You'd then get a longer term slump, as all companies stop investing in basic research and long-term R&D, since they can just wait and copy someone else's research instead. When building real physical products, being second to market by a few weeks costs far less than the years of R&D required to build a truly revolutionary product, not to mention you can use that R&D money to either (a) polish the your product more than the inventor's original product, or (b) splurge on marketing.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by dave_sullivan on Sunday March 19, 2017 @11:55PM (#13911549)
> being second to market by a few weeks costs far less than the years of R&D required to build a truly revolutionary product

Can you point to a time where this has turned out to be true by your estimation? An example of a product where there was a tremendous amount of R&D required and the only thing saving the company from being destroyed by competitors beating them to the market 2 weeks later was a strong patent portfolio?

Even in the original iPhone presentation, there's a point where Steve is like, "Oh, and you bet we patented it, lol." But was that why the iphone succeeded? Was that why it could exist in the first place? Were it not for those patents, would Apple have been crushed by competitors mimicking them?

The pro-patent arguments are always expressed as hypotheticals, whereas there are numerous specific examples of patents hurting smaller companies unable to afford the cost of defending themselves. I'd be very interested in situations where the upshot is, "Oh boy, good thing for science and art that those patents existed."

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by Cyph0n on Monday March 20, 2017 @12:16AM (#13911654)
A huge company like Apple is a bad example. The best example of patents working well are when they are used by startups formed from university research groups.

You have a group of people that has performed basic research with minimum funding and decides to commercialize an idea. Since the group's work is already published in conferences and/or journals[1], it is extremely easy for a huge company to just throw some money at the idea and come out with a commercial implementation. But with patents in hand, the research group and the university can decide to either sell the patents to the highest bidder, or continue developing the product if they see the potential. And since the idea is protected by the law, no amount of money can kill the company.

I actually believe that the US patent system is one reason behind the success of advanced tech startups here.

[1]: Publication of results is a requirement for virtually all types of research funding. In other words, if you don't patent the outcome of your research, it's essentially in the public domain.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by dave_sullivan on Monday March 20, 2017 @01:08AM (#13911862)
That sounds pretty reasonable, but what's a specific example of this happening? One that comes to mind is CRISPR, and the patent dispute over that has literally held the field back. CRISPR is the thing that's going to cure cancer, and it's being held back because of patent nonsense. I can't prove it, but if patents didn't exist, I'm pretty sure CRISPR (and the specific nuances at the heart of the actual patent dispute) would nonetheless have been discovered.

Meanwhile compare to something like deep learning, which is uniquely unencumbered by patents for several reasons. Yet somehow corporations seem to be interested and the pace of progress is rapid.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by scott00 on Monday March 20, 2017 @09:58AM (#13914245)
The massive data required for machine learning presents an opportunity to create a moat around those businesses. Releasing the algo but not the data doesn't help competitors much. There's also often a first-mover advantage in data collection: operating a service can give you a unique opportunity to collect relevant data, making it very hard for competitors to catch up. The canonical example is Google search: a competitor can scrape the web (at great cost), but they can't get Google's result click data until they're competitive with Google. And without the data it's damn hard to be competitive.
Re:The last patent on AC-3 (Dolby Digital) expires at midnight by briandear on Monday March 20, 2017 @04:04AM (#13912487)
If a university research group has public funding -- then what? My tax dollars go to support a company that then makes billions from a technology that wouldn't be possible without my involuntary investment.
Re:The last patent on AC-3 (Dolby Digital) expires at midnight by Cyph0n on Monday March 20, 2017 @10:48AM (#13914650)
The university takes a cut, so your money contributed to the US education system, and probably ended up funding more research endeavors.
Re:The last patent on AC-3 (Dolby Digital) expires at midnight by JunkDNA on Monday March 20, 2017 @07:04AM (#13913122)
Pharmaceuticals are a great example. The actual chemical compounds are mostly trivial to manufacture. This is the central reason generic drugs are so cheap. Once you know a particular chemical is useful as a drug and someone else has done the legwork of proving it to regulators, copying that drug is simple and cheap.
Re:The last patent on AC-3 (Dolby Digital) expires at midnight by jononor on Monday March 20, 2017 @08:58AM (#13913711)
The R&D process for pharmaceuticals is long, hard and expensive because it needs to pass regulations. And it kinda needs to be like that to keep the safety of people. But most areas of invention are not like that, there are no such strict regulations, or the need for them. So an idea would be to remove patents as a general invention-protecting mechanism, and replace it with a protection tailored specific to the regulations that cause the problem to be so significant, like in pharmaceuticals. Maybe the FDA could even administer/enforce it.
Re:The last patent on AC-3 (Dolby Digital) expires at midnight by greglindahl on Monday March 20, 2017 @12:22AM (#13911673)
Anything to back your prediction up? The startups I've worked for got patents, but everyone knew (including our investors) that the patents were useless if anyone actually copied our work.
Re:The last patent on AC-3 (Dolby Digital) expires at midnight by kelnos on Monday March 20, 2017 @01:08AM (#13911863)
Agreed; the conventional wisdom around filing patents at the startups I've worked for has been to increase the value of the company (a patent can be valued as an asset). No one ever expected us to file suit against another company that might infringe on our patents (which would take years to get issued, anyway). Doing so would be such a time suck that it would distract us too much from building an actual product.
Re:The last patent on AC-3 (Dolby Digital) expires at midnight by hertzdog on Monday March 20, 2017 @02:54AM (#13912267)
I agree with you, I have been involved in startup and patents, and the feeling was similar. I can add that patents can also be viewed as a "freedom to operate" certificate: lower chances that someone else claims you can't do what you are doing.
Re:The last patent on AC-3 (Dolby Digital) expires at midnight by mark-r on Monday March 20, 2017 @02:41PM (#13916573)
I once worked for a small company that decided to sue their competitor for patent infringement. Not only did it take a huge amount of time and money, but in the end they lost the suit anyway. Eventually they ended up merging with said competitor so the only winners were the lawyers.
Re:The last patent on AC-3 (Dolby Digital) expires at midnight by Angostura on Monday March 20, 2017 @05:20AM (#13912754)
> You'd then get a longer term slump, as all companies stop investing in basic research and long-term R&D

There would be a different type of slump too, as companies kept important technologies secret, rather than patenting them

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by tracker1 on Monday March 20, 2017 @12:16AM (#13911650)
I would suggest that anything that can be implemented as an abstraction in software alone probably should be limited to no more than 5 years of protection, without any possibility of extension patents... Even then, it would be far better than what we have.

Drug/Medical patents need some reform that may need to include compulsory licensing after 3-5 years, and a dual-source requirement (two manufacturers) in order to be covered by government subsidized/paid for insurance programs (including VA, Medicare and gov't employees).

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by spacemanmatt on Monday March 20, 2017 @09:51AM (#13914176)
> You don't hear about copyright trolls as often; it's not as crippled of a system.

Strongly disagreed. Copyright is at least as broken as patents, if not more. Mickey Mouse and most of the Disney catalog should have gone out of copyright years ago but they lobbied our corrupt Congress for an insane extension which is now uniformly used throughout the industry. Our public domain has been thoroughly robbed.

For more about abuse of the copyright system and courts in general, see the history of abuse meted out by Prenda Law against various innocent parties. That shit show never should have happened, and it took courts years to stop it. Prenda attorneys are now turning state's witness against each other because they're so busted.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by twblalock on Sunday March 19, 2017 @11:54PM (#13911546)
> If you were to remove patent protections, the progress of science and useful art would not suddenly take a nose dive. In fact, I'd go as far as to say that patents stifle progress in art and science.

Why would corporations be motivated to promote progress in science if someone else could come along and get all of their hard-earned research and development for free?

It costs millions or billions of dollars to drive innovation, and there are very few (if any) corporations idealistic enough to spend that kind of money if they don't think they will be able to earn it back.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by mcbits on Monday March 20, 2017 @06:46AM (#13913055)
Because the other option besides innovation is to compete in the "drive margins to zero" space, which isn't very profitable. Patents don't drive innovation. They supposedly prevent innovation from being locked up in trade secrets to live and die with the inventor.

But today's patents are written by lawyers and for lawyers. Patents are usually so terrible at their one job - elucidating inventions - that it takes years of debate between experts just to decide whether a patent even applies to an existing product. They are of no value to the public 20 years later. The whole system has become a make-work welfare program for lawyers and a barrier to free competition.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by tomcam on Sunday March 19, 2017 @10:43PM (#13911324)
It's a compromise. The framers of the Constitution had battles about that. Some of them thought patents were bad, some thought they promoted innovation.
Re:The last patent on AC-3 (Dolby Digital) expires at midnight by kelnos on Monday March 20, 2017 @01:05AM (#13911845)
Note that the term "useful Arts" as used in the Constitution doesn't mean art as in performance or fine art, it means the same thing as if you were saying that something is "state of the art" -- methods of construction, craftmanship, or manufacture.

(Though you could probably say that copyrights might in some ways stifle people's artistic expression.)

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by incompatible on Monday March 20, 2017 @03:17AM (#13912359)
I suppose needing a license to be able to repeat any non-trivial part of anything that anyone has done over the last lifetime + 70 years could stifle artistic expression in some way. Who knows.
Re:The last patent on AC-3 (Dolby Digital) expires at midnight by icodestuff on Monday March 20, 2017 @03:26AM (#13912384)
But you do hear about them. SCO, Las Vegas Review Journal, Warner Bros., Prenda Law, etc.
Re:The last patent on AC-3 (Dolby Digital) expires at midnight by hbgl on Monday March 20, 2017 @03:33AM (#13912402)
> "To promote the Progress of Science and useful Arts ... "

That's begging the question. How much innovation is gained and how much is lost? Nobody can give an answer.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by imjustsaying on Monday March 20, 2017 @12:27AM (#13911689)
>It's to avoid free-riders copying an invention after someone else researches the related dead ends.

How much did you pay to use the language and the vocabulary you're using in this post?

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by deelowe on Sunday March 19, 2017 @10:34PM (#13911293)
> If your thing is truly groundbreaking, keep it secret.

The whole point of patents is to encourage disclosure.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by fnj on Monday March 20, 2017 @06:20AM (#13912945)
Yeah. That's the idea, all right. The reality, not so much. Anyway, if you disclose the idea, all anyone has to do is come to an agreement with you to use it. And if you keep it a secret ... it's exactly the same! All anyone has to do is come to an agreement with you to use it.
Re:The last patent on AC-3 (Dolby Digital) expires at midnight by jononor on Monday March 20, 2017 @09:02AM (#13913744)
Patents are parts of the public record and expire. So it will eventually be part of the public domain. For secrets there is no such guarantee. Of course these days patents are written in such an obfuscated manner, that maybe they aren't very useful as references in the future.
Re:The last patent on AC-3 (Dolby Digital) expires at midnight by encoderer on Monday March 20, 2017 @11:32AM (#13915005)
Without patents, how much time and money would be wasted obfuscating how things work, making it harder to duplicate?

Patents are about giving legal protection to explain how things work, to put it right there for everybody.

That said, eliminate software patents.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by marklgr on Monday March 20, 2017 @02:57AM (#13912287)
> There's a decent argument for drug patents (drugs cost a fortune to develop; makers only recoup losses if they can mark up the cost of drugs massively; competition gets in the way of that), but I'd argue this is a better argument against the whole industry and an argument for more public funding of drug research.

Most people wouldn't go and see a doctor who clearly states that they're just after money, because you know they have tuition to pay back and if they leave money on the table then competition is gonna take it and drive him/her out of business. Public health is obviously a public good, but somehow handing it over to companies with non-aligned interests (eg. pushing some of the dubious drugs to recoup on R&D) is ok.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by an_account on Monday March 20, 2017 @01:11AM (#13911878)
The hacker news community, and more generally the computer technogolgy, often have this point of view. There's no doubt that patents for our industry could use some work.

However, go to many other idustries and you'll find that people have a much more positive view of patents. We hear about it when patents don't work. You don't often hear about patent success stories.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by dave_sullivan on Monday March 20, 2017 @01:16AM (#13911902)
> You don't often hear about patent success stories.

True enough, can you share some? (preferably post 80s, ie not Robert Kearns?)

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by jdietrich on Monday March 20, 2017 @03:10AM (#13912335)
Lonnie Johnson invented the Super Soaker in his garage, while working for the USAF. He licensed the technology to Larami Toys (now Hasbro) and later used the same principle to develop the Nerf gun. After an arbitration hearing in 2013, he was awarded nearly $73m in unpaid royalties. He is currently working on a variety of technologies related to sustainable energy.

https://en.wikipedia.org/wiki/Lonnie_Johnson_(inventor)

To give an extremely niche and rather longwinded example:

Fine engraving is done with a specialised reciprocating tool that works a bit like a tiny pneumatic jackhammer. There are two real choices if you want one of these tools. GRS were first to market and are the dominant player; they make a relatively complicated system of tools that use a bulky desktop control unit. The alternative is the Steve Lindsay Airgraver, a beautifully simple design that connects directly to a compressed air source.

GRS would easily have the muscle to push Lindsay out of the market if it weren't for his patents. They have an international network of dealers and training providers; he has little more than a great product and some very satisfied customers. Lindsay's sole commercial advantage is superior technology.

The original patents for both the GRS and Lindsay tools have lapsed, but both tools have been continuously improved over the intervening years with many subsequent patents. If either side stops innovating, they're likely to be decimated by cheaper knock-offs as soon as their last useful patent expires.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by dave_sullivan on Monday March 20, 2017 @04:24AM (#13912552)
Thanks, those are good examples. I do want to point out however: these aren't exactly earth shattering inventions of the kind that justify the sentiment that patents are helping advance art and science.

Because the super soaker guy wants his patent, small software companies have to eat shit from patent trolls and millions (billions?) has to be spent by companies in litigation?

The positives don't outweigh the negatives.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by jdietrich on Monday March 20, 2017 @04:45AM (#13912625)
Software patents are obviously bogus, as shown by the Curry-Howard correspondence. Software is not patentable in many jurisdictions.

Abandoning the patent system because of software patents would be an egregious example of throwing the baby out with the bathwater. The USPTO and the American civil legal system is broken in a lot of quite fundamental ways, but that doesn't invalidate the basic idea of patent law.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by TeMPOraL on Monday March 20, 2017 @04:41AM (#13912611)
To be fair, our civilization is built on accumulating such "small" inventions. Even such (literally) Earth-shattering invention as the atomic bomb required thousands of smaller inventions across many different areas of science and engineering.

I agree that software patents situation is shit, though it would be great if we could handle patent systems of different industries in isolation.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by bdhess on Monday March 20, 2017 @01:28AM (#13911947)
Pharmaceuticals, for instance.
Re:The last patent on AC-3 (Dolby Digital) expires at midnight by dave_sullivan on Monday March 20, 2017 @01:50AM (#13912038)
In my PP I specifically said:

> There's a decent argument for drug patents (drugs cost a fortune to develop; makers only recoup losses if they can mark up the cost of drugs massively; competition gets in the way of that), but I'd argue this is a better argument against the whole industry and an argument for more public funding of drug research.

Got any others?

And/or since you brought it up, I'm legitimately asking: what's the best example in your mind of a drug that probably would not exist without patents?

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by matt4077 on Monday March 20, 2017 @07:40AM (#13913266)
Patents (and any other IP protection except trademarks) are based on two competing objectives:

(a) increase invention

(b) increased distribution of invention

The mechanism of a time-limited protection tries to increase (a) at the cost of (b). Any discussion must start with the acknowledgement that both goals have merit, and that the mechanism of how IP law affects them is basically sound.

There's obviously a point of diminishing returns in the time-limits. For example I'd argue that the money earned "70 years after the death of the creator" contributes very little to the motivation of today's writers. On the other hand, very few people will argue that an exclusive right to sell a book for the first year has never in history influenced a writer's decisions.

It's impossible to find the exact point where the curves meet without looking at a lot of actual data, and it's probably different for every product.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by contravariant on Monday March 20, 2017 @10:40AM (#13914572)
For the most part I agree with what you said, however there are a few points that I think you've gone a bit too far.

I agree that both goals you mentioned have merit, but I think it's going to far to say that the mechanism of IP law is necessarily sound. Granting exclusive right to an invention might be the obvious solution, but is not without problems, so I don't think it's right to dismiss any discussion that doesn't affirm IP law to be basically sound.

Secondly, the exclusive right to sell a book (or more generally, the reproduction of any work) for one year, did no exist for large parts of history, so I don't see how it could possibly have influenced a writer's decisions during those times. At the very least it's not the case that books don't get written without copyright.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by matt4077 on Tuesday March 21, 2017 @10:00AM (#13922228)
I was trying to speak against the very error you seem to be making, i. e. the idea that IP rights have either only good or only bad effects. They're always trying to strike a balance between conflicting goals.

Would any books be written without copyright? Yes, of course – although the laws go back to the 17th century, so it's hard to argue that there ever was a golden time of freedom, considering the printing press was newish at the time and the collective creative output has, even per-capita or GDP-adjusted, increased by about a dozen orders of magnitude.

The two mechanisms which I consider "basically sound" is that (a) financial incentives generally work to stimulate creative output. It's not the only motive driving the useful arts, but you'll have a really hard time showing that it's a net-negative, considering that limitless evidence for the efficacy of financial incentives.

The other mechanism is (b) that the restrictions on distribution created by IP laws diminish the actual usefulness of creative output, which includes the number of people having access to it as one factor.

Both mechanisms are obvious, yet they work in opposite directions. The total benefit of IP is (simplified) <works created, i. e (a)> * <people reached, i. e. (b)>.

There are some examples for how to avoid this conundrum, such as 'fair use', or the government (or interested groups/individuals) buying IP rights and donating to the public domain. I also believe quite firmly that copyright terms of death+70 years are far beyond the point where they create enough benefits in (a) to offset the losses in (b). The situation for patents is a bit more murky.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by jcranmer on Monday March 20, 2017 @12:42AM (#13911755)
The usual poster child for patents is drug development. It costs about $1 billion to get regulatory approval for a drug (this is also why drug costs tend to be high). Once you know the formula of a drug, it's not particularly hard to work out how to make it, and the marginal costs of actual production are almost nil.

The main value proposition of patents is that you entice inventors to make their inventions public for promoting further innovation, with the cost to society of given them exclusive practice for a short time. The problem with trade secrets is that reverse engineering exists, is generally legal, and is surprisingly easy. Give me a shipping binary and it's effectively equivalent to giving me source code.

I recently was thinking about patents, and software patents in particular. It's clear that the current patent system doesn't work very well here. SCOTUS has heard several cases about this general area of patents, and has found all of them distasteful (note that State St. was not a SCOTUS decision, and in Bilski, SCOTUS went out of its way to complain about how bad State St. was), while still struggling to be able to articulate a useful test.

The problem with software patents, in a nutshell, boils down to the fact that an invention like, say, the Enigma machine is the sort of prototypical invention that everyone would agree is patentable, while it's not clear that the software analogue should enjoy the same patentability (leaving aside questions of novelty, here). Should we prejudice a modern inventor just because he implements his useful machines in a virtual question, they ask, with the implicit response hopefully being no. And it's that response that drives SCOTUS to shying away from categorically saying that this sort of stuff that's never patentable.

And the answer I would give is yes. It is inherently more difficult to realize an idea in a physical domain than it is in a virtual domain--after all, I can try many different implementations in an afternoon (it's called recompiling). Furthermore, one of the great revelations of the information age was that you can equate many different concepts with relatively simple encoding systems--think about how we can use integers to represent, say, floating point numbers or strings. The essence of patentability is that you had to figure out something new, which is to say you had to realize an abstract idea into something concrete in a new way.

The downside is that this suggests that software should be patentable, although the bar should also be recognized as being much higher. And when you go back and you read the Alice decision, you can see SCOTUS sort of reaching towards that idea: you have to do something inventive with the abstract idea to meet §101 requirements.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by dave_sullivan on Monday March 20, 2017 @01:42AM (#13912007)
Yeah, agreed re: drugs. Given the current state of the industry, "How do you develop drugs without patents?" is a legitimate question. As I said in my PP, I think it's more of an indictment of the industry than a good example for why we need patents. But yes, I agree, drug patents are the best leg patent proponents have to stand on. I still think drug patents should be massively weakened, but it's a longer argument.

> Should we prejudice a modern inventor just because he implements his useful machines in a virtual question, they ask, with the implicit response hopefully being no.

If the sentence starts with "Should we prejudice a modern inventor just because...", the answer is probably "Of course not!" because it's such a loaded way to phrase it. Just saying.

But your larger point is well taken; I understand that this is exactly the analogy used in court decisions that end up being pro-patent. "Even though the method of implementation of ideas has changed, the spirit of the original concept of patents still stands true, as it has historically." But my takeaway from looking at basically the same evidence is "Patents weren't a very good idea in the first place, and now they're a really bad idea because times have changed because of software and the patent-industrial complex has made the software business worse for the little guy."

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by jnordwick on Sunday March 19, 2017 @10:33PM (#13911287)
> If your thing is truly groundbreaking, keep it secret

That's kind of the point of a patent. It allows research into the open instead of secret so others can improve on it while the patent holder monetizes what he created.

without it, corporate research would be entirely kept private.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by incompatible on Monday March 20, 2017 @05:42AM (#13912817)
If corporations were so confident of their ability to keep research private, they wouldn't apply for patents. However, I suspect most inventions are either of little practical interest, or would soon be rediscovered by somebody else. How long would it have taken before somebody else thought of 1-click buying, for example?
Re:The last patent on AC-3 (Dolby Digital) expires at midnight by TrinaryWorksToo on Monday March 20, 2017 @06:50AM (#13913071)
I was advised never to read patents when inventing something. What's so useful about a system that's supposed to help people innovate when it's so questionable to use that lawyers are advising against it?
Re:The last patent on AC-3 (Dolby Digital) expires at midnight by mark-r on Monday March 20, 2017 @02:55PM (#13916688)
Lawyers advise against it because damages go way up if the patent owner can show you knew about the infringing patent. A very perverse outcome.
Re:The last patent on AC-3 (Dolby Digital) expires at midnight by TrinaryWorksToo on Monday March 20, 2017 @04:55PM (#13917585)
So doesn't that ultimately sabotage the idea that it brings information to the masses faster, if no one can act upon it?
Re:The last patent on AC-3 (Dolby Digital) expires at midnight by chx on Monday March 20, 2017 @06:09AM (#13912913)
My uncle invented a new type of sprinkler. It's perhaps not groundbreaking but it was significantly better than anything on the market that time. If not patenting it then how do you suggest he went about making money out of it? He have invented that thing in his garage over quite a few years of tinkering, it's not like he had the capital to build a factory to mass produce it. No, he patented it, went to the manufacturer, sold it, and everyone was happy. Yes, even the manufacturer was happy because the R&D costs to create a product that much better than the competitors would've been much higher. It was a win-win situation for everyone involved.
Re:The last patent on AC-3 (Dolby Digital) expires at midnight by simonh on Monday March 20, 2017 @06:25AM (#13912965)
> but I'd argue this is a better argument against the whole industry and an argument for more public funding of drug research.

Ok so the US publicly funds the development of a new drug. It costs US tax payers $1bn. 3 months after the drug is approved, factories in a BRIC start manufacturing it for peanuts and selling it all over the world. How do US tax payers recoup their costs? You've just pushed the freeloading issue away from 'other companies' and over towards 'other nations'.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by lostcolony on Monday March 20, 2017 @06:51AM (#13913075)
"Recoup their costs" - the same way we recoup them by providing welfare. Human capital. If we don't believe that keeping people alive and healthy is worth investing in, what, exactly, are we bothering to spend any money on in the first place?

The reward/loss proposition is "does this drug help people and would have it existed otherwise", not "did we turn a monetary profit"

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by logfromblammo on Monday March 20, 2017 @10:59AM (#13914744)
NPR recently aired an opinion by someone who claimed that the US federal government could save money in the long run by buying the (publicly traded) inventor of a Hepatitis C drug on the open market (for about $500M) and then manufacturing and giving the drug gratis to all diagnosed Hep-C patients. The large up-front expenditure is recouped on the back end by reducing the expensive liver transplants that would likely be required, and then paid for by Medicare.

It is an argument-in-miniature for reforming health care in the US.

In all likelihood, the US should be operating its own generic pharmaceutical manufacturing facility, for all clinically relevant patent-expired drugs, that would, at minimum, serve all VA, Medicare, and Medicaid patients. If you can pay from an effectively unlimited purse, that just encourages the generics manufacturers that you buy from to raise their prices to just beyond the limit of what is reasonable.

Curing disease is usually less expensive than continuously treating them until the patient dies (or runs out of money). The patent system encourages research into the latter. A public health system would prefer the former.

The quest for (economic) profits in an industry is by definition the quest to make it more expensive relative to other industries. You can't get better than average returns from companies in it unless their customers are paying more money into it relative to other industries. Granted monopolies allow firms to achieve economic profits. Health care is expensive in the US because it is protected from commoditization. That is by design, so that health care businesses can be (economically) profitable!

It stands to reason that you cannot achieve lower costs without destroying opportunities to realize economic profits. That is why this administration and all previous administrations fail at "fixing healthcare". They are already committed to preserving the profits. Health care company shares make it easier for those that own them to live at the expense of those who do not. The noise about insurance plans and coverage is distracting everyone from the root cause: for-profit businesses with protected monopolies.

Drug research can be done with the goal of improving quality of life rather than the goal of making more money than can be earned by investing on the no-risk baseline.

Patents make an industry more expensive for everyone else to buy from. That is their purpose. The original intent was to make otherwise untenable investments in R&D pay off. But in mature, non-nascent industries, they are a drag on the economy.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by BigJono on Sunday March 19, 2017 @10:15PM (#13911220)
> If your thing is truly groundbreaking, keep it secret.

That's a lot easier said than done.

Re:The last patent on AC-3 (Dolby Digital) expires at midnight by neves on Monday March 20, 2017 @07:03AM (#13913116)
Maybe because you will be sued to death if you do not have any up