I reckon it's broke good and proper and should simply be completely abandoned, a new business model will evolve and good money will still be made.
I particularly liked the numbers out of IBM the other week, $7 bil on R&D, $1 bil return on patent royalties, no mention of payment of royalty amounts paid to other companies, or of costs incurred lodging patents or of legal costs associated with patents. So you have to use the 14% R&D recovery as a maximum. Now if IBM is spending $6 bil p.a. on non recoverable R&D costs just how much will they drop with no patent protection? It would seem to indicate to this little black duck that not very much would change at all!