logo

Against Monopoly

defending the right to innovate

Monopoly corrupts. Absolute monopoly corrupts absolutely.





Copyright Notice: We don't think much of copyright, so you can do what you want with the content on this blog. Of course we are hungry for publicity, so we would be pleased if you avoided plagiarism and gave us credit for what we have written. We encourage you not to impose copyright restrictions on your "derivative" works, but we won't try to stop you. For the legally or statist minded, you can consider yourself subject to a Creative Commons Attribution License.


back

China joins the patent trolls; wake up America

STEVE LOHR claims to examine China's new push on innovation, but it is really about the policy to promote issuing more patents link here. The government is actually providing incentives to increase the annual patent harvest, including bonuses, better housing, and tax breaks. Finally, it has set yearly targets, currently rising to 1,000,000 by 2015.

As I thought about this, I realized that patents have become a tool of international competition policy. If you are behind in the patent race, file like mad and be prepared to litigate. You may win or you can make it so expensive for others that they will agree to cross license at modest or no cost. Pretty smart, those guys. They have learned the lesson of Microsoft, Intel, Hewlett-Packard, etc. The road to monopoly riches lies through the kingdom of patents.

Sooner or later, this competitive challenge will force the US, as well as other rich developed countries to make a choice. But first we will have to recognize what is happening, Then we can face the need to decide either to abandon patents or see our lead in new technology disappear and with it much of the gains we derive from such monopolies.

I would expect that the existing patent giants will resist abandoning the patent system. They have a huge stake in its continued existence as it protects them from competition for decades and with clever follow-on invention, permanently. And they may finally decide to work with the Chinese patent holders as they feel better off with an oligopoly than with free competitive markets.

It is difficult to feel confident that our government will make the right choice, given the huge political power of the patent giants. If so, so much the worse for the average consumer. One must be particularly pessimistic because of the hold that the concepts of patents as property (even if it is only intellectual property) deserving of the same respect as physical property and of violations as robbery or piracy, to use the current word of choice in the political battle. It is really hard to convince the average consumer of the huge magnitude of the dead-weight loss they all suffer, most especially from the fees of the patent lawyers.


Comments

After writing the above, I found two web pieces suggesting others have concerns about China's aggressive technology acquisition policies.

One is here-- http://politics.slashdot.org/story/11/01/01/0030216/EU-Wants-Power-To-Block-Chinas-Tech-Buying

And the other here-- http://yro.slashdot.org/story/11/01/01/2159203/Chinese-Intellectual-Property-Acquisition-Tactics-Exposed


Submit Comment

Blog Post

Name:

Email (optional):

Your Humanity:

Prove you are human by retyping the anti-spam code.
For example if the code is unodosthreefour,
type 1234 in the textbox below.

Anti-spam Code
TwoThreeNineSeven:


Post



   

Most Recent Comments

IIPA thinks open source equals piracy You might find this very interesting but http://www.perfectessaysonline.com does custom essays,

Your Compulsory Assignment for Tonight There are some uncomplicated guides which describe the assignment accomplishing process step by

Killing people with patents AIDS is a dangerous decease. I have watched the trailer and it is heart touching. I wish no one to

Terence Kealey: This post is very helpful for my writing because I am doing the research paper work so I search

Dr. Who?

The Other Dr. No: HIV Researcher Fighting the IP Pirates Hi, First off, I came across your site and wanted to say thanks for providing a great HIV/AIDS

IIPA thinks open source equals piracy Buy college papers at http://buy-essays-now.com and make sure that they are the best

Let's See: Pallas, Pan, Patents, Persephone, Perses, Poseidon, Prometheus... Replying to Stephan: As I noted elsewhere, I'm fine with abolishing the system, just don't think

The right to rub smooth using a hardened steel tool with ridges Finally got around to looking at the comments, sorry for delay... Replying to Stephan: I'm sorry

Let's See: Pallas, Pan, Patents, Persephone, Perses, Poseidon, Prometheus... This is very useful post for the people. I want to write this types article but I do not know about

Let's See: Pallas, Pan, Patents, Persephone, Perses, Poseidon, Prometheus... Seems like a kinda bizarre proposal to me. We just need to abolish the patent system, not replace

The right to rub smooth using a hardened steel tool with ridges I'm a bit confused by this--even if "hired to invent" went away, that would just change the default

What's copywritable? Go fish in court. This post is providing very useful and informative information for the students. I like this post

Update and critique of the proposed GOOGLE settlement Hi!) Informative article about Google INC. I agree with you, that Google is a huge company, that

IIPA thinks open source equals piracy Do you suffer from loads of academic assignments? http://marvelous-essay.net will help you to

The right to rub smooth using a hardened steel tool with ridges Thanks for the information! It's good to know that there are some places showing the consequences

Do we need a law? @ Alexander Baker: So basically, if I copy parts of 'Titus Andronicus' to a webpage without

Do we need a law? The issue is whether the crime is punished not who punishes it. If somebody robs our house we do

Do we need a law? 1. Plagiarism most certainly is illegal, it is called "copyright infringement". One very famous

IIPA thinks open source equals piracy Good post. Thanks for this information. By the way, if students want to get rid of their