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Re: [Sheflug] Software Patents and small businesses
On Wed, 2003-07-09 at 10:31, Bob Holland wrote:
> Some of you will no doubt have received emails regarding EU patent changes
> for software products.
>
> I note that Club UK Online has a workshop in Hull next week. In view of the
> EU vote regarding software patents (now shceduled for September) I am mindful
> to go along & would like to try to get the concensus of opinion of this
> group, particularly in terms of what is best from the point of view of the
> South Yorkshire economy, its citizens, local communities and small businesses.
>
> Are software patents a good thing?
>
> The general argument for patents is that they help protect investment in
> innovation. My own feeling is that in a global marketplace patents in general
> protect large company interests to the exclusion of small companies and
> thereby stifle true innovation. Of course, patented work is 'published'
> (don't believe anyone if they say to you 'this is a secret patented process'
> - something I had to point out recently to the authors of a Which? report).
> The counter argument to this is that patents can be used to protect
> the work done by small companies. However, since it is the inventor's
> responsibility to...
>
> (a) identify any pertinent 'prior art';
> (b) produce the patent application in the appropriate 'patent speak';
> (c) defend the patent in the courts against infringement;
> (d) pay renewal fees;
>
> ...very deep pockets are required. I guess we are talking today about a
> budget of somewhat more than £30k plus renewal fees to obtain patent
> protection in the major industrialised territories. In a global markeplace
> there would appear to be little point going for a UK patent. There are not
> too many small companies I know who can do this.
>
> When it comes to (c) and a big(ger) player is involved, they will probably
> sell out rather than defend their independence through the courts - sounds
> like a recipe for anti-competitive practice to me.
>
> An example from my own background...
>
> Back in 1979, working for a small local company I designed a 'programmable
> controller' for use in the baking industry. This incorporated what would be
> known today as an 'integrated development environment'. This system was sold
> to a number of clients and incorporated in a range of bakery process
> machinery. A high speed dough mixer incorporating the system was launched in
> Las Vegas in 1980 and was widely used during the 1980s.
>
> A year or so ago I was reviewing my CV and noted how commonplace one of the
> techniques I had used in this product had become. Something
> prompted me to do a patent search using a couple of key words. I very quickly
> located a patent awarded to a large US company (familiar to all but not an
> obvious player today in the computer game). The patent was clearly important
> (it had been filed in many parts of the world) and had been licensed to the
> likes of Borland, Microsoft et al. The date on the patent was 1983. Whilst I
> have no wish to claim 'invention' of the technique (as others unknown to me
> had probably beaten me to it), I can probably prove that the patent is
> invalid - but heck, I am on my own and would be fighting against a large US
> corporation and the patent has (almost) expired anyway.
>
> There are several points raised by this...
>
> 1) It is almost impossible to identify relevant prior art - the US patent
> department seems particularly bad at doing this (another story) and
> frequently rely solely on the statements of the applicant;
> 2) The technique I developed was merely a side issue to the main purpose of
> the product and was therefore not considered especially significant (by me);
> 3) Software patents were not allowed in the UK anyway, so the technique would
> not have been identified as patentable.
>
> This experience seems to suggest that small companies should be more 'patent
> aware' and that patent protection should be allowed for software. It also
> suggests that it would be a good idea for 'inventors' to retain an
> experienced patent agent who would review all developments both for
> patentable content and potential infringement. Having worked with a number of
> patent agents over the years it seems inventors are particularly bad at
> identifying 'patentable' aspects of their work.
>
> Given that a patent system already exists and is likely to be extended to
> software then I would tend to agree that a good patent agent becomes a
> necessity - good news for patent agents but an impossibly large cost for an
> individual and prolific inventor. Together with (1) above, it is why I
> believe that the existing patent system discourages real innovation in small
> companies and why further extension should be resisted.
>
> Given the worldwide explosion in technology since the concepts of patents
> originated, is it not time for the world to have a complete rethink?
>
> Open source's concept as the equivalent of publishing scientific papers runs
> somehwat parallel to the patent system. Why should individuals not be free to
> publish their work if they wish? Providing the 'prior art' is researched
> correctly, patents will not be granted for work already in the public domain
> and open source will have achieved its aims. The difficulty for innovation is
> that individuals may be discouraged from coming up with really new ideas in
> the public domain in case they are in infringement of a patent somewhere.
>
> Many 'patents' which have demonstrated the properties of 'industrial
> application' and 'an inventive step' will of course have been built on
> published research. The publishing process encourages inventiveness and
> rewards inventors through salaries, research grants and the 'kudos' of
> having their work recognised in peer-reviewed journals.
>
> The patent system rewards those in turn who may incur significant up-front
> costs and commercial risks to turn 'ideas' into the real products which
> provide benefit for humanity. This is often forgotten in the discussion on
> software but is very real in other areas of technology.
>
> Does extending the scope of patents in reality have any effect on this?
>
> I view the open-source approach as essential for innovation in my own work -
> it enables me to 'stand on the shoulders of giants' as it were and to earn a
> reasonable living whilst in return acknowledging the contributions of others.
>
> Perhaps government-funded open-source projects operating in the same way as
> other government-funded research will enable authors to be adequately
> rewarded for their work. Existing funding agencies don't appear to understand
> this concept.
>
> Any views on this? Perhaps an 'Open (source) University' should be
> established and we can all go back to wearing kipper ties? (Hey - I bags the
> copyright on that one!).
>
> Must go for now,
>
> Bob Holland
>
>
The thing that stands out for me with regard to software patents is that
it looks very likely that *in practice* it will work against software
innovation.
Since the patent office will neither have the resources or expertise to
establish that a patent request is new and inventive it will lead to
some pretty bogus patents, and because of the costs involved it will
lead to large corporations building a library of (valid/bogus) software
patents either as a defensive measure (patent trading with other large
organisations) or just for plain, blatent abuse of smaller (innovative)
software companies. (e.g. see this link
http://www.forbes.com/asap/2002/0624/044_print.html)
Dave.
> .
--
Dr. David Holden. (Systems Developer)
Visit: Crystallography Journals Online <http://journals.iucr.org>
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