Re:Google buys 1,000 patents from IBM to defend Android
by qohen on Wednesday September 14, 2011 @11:20PM
(#2998779)
But, it turns out that, the sewing machine patent pool may have inhibited innovation, according to this paper:
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1308997).
"Contrary to theoretical predictions, the sewing machine pool appears to have discouraged patenting and innovation, in particular for the members of the pool. Data on stitches per minute, as an objectively quantifiable measure of performance, confirm these findings. Innovation for both members and outside firms slowed as soon as the pool had been established and resumed only after it had dissolved. "
"The Sewing Machine War was the first instance of what is today called a 'patent thicket.' The disputes prevented Singer from selling his invention, and tensions ran high in and out of court: When Howe personally called on Singer, Singer threatened to throw him down a flight of stairs.
But there’s a happy ending to the story, as your machine-stitched clothes evince. The Sewing Machine War ended with a just and lasting peace in 1856, when Orlando B. Potter--a lawyer representing one of the plaintiffs--suggested a solution that Mossoff calls 'groundbreaking but also breathtakingly simple': The patent-holders would combine their patents in a 'patent pool' and share the profits from selling the machines. The patent pool participants lived happily and wealthily ever after--or at least until 1877, when the last patent expired."