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There is heated debate as to whether and to what extent it should be possible to patent software and computer-implemented inventions as a matter of public policy. Software patent does not have a universally accepted definition Opposition to Software patents is widespread in the Free software community. This is a categorized list of notable Patents and Patent applications involving Computer programs often labelled Software patents The patents are listed according The WTO 's Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs particularly Article 27 are important elements in the debate on the international legal There are two provisions in the Regulations annexed to the Patent Cooperation Treaty (PCT that relate to the search and examination of Patent applications concerning The patentability of software, Computer programs and computer-implemented Inventions under the European Patent Convention (EPC is the extent to which inventions There are four over-riding requirements for a Patent to be granted under United Kingdom patent law Software or computer programs are not explicitly mentioned in United States patent law. This list provides a guide to decisions of the Boards of Appeal of the European Patent Office (EPO relating to. This article lists judgments of the UK Courts relating to excluded subject matter. Business method patents are a class of Patents which disclose and claim new Methods of doing business. A patent is a set of Exclusive rights granted by a State to an inventor or his assignee for a fixed period of time in exchange for a disclosure of an

A particularly active focus of the debate in recent times has been the proposed European Union directive on the patentability of computer-implemented inventions, also known as the "CII Directive" or the "Software Patent Directive," which was ultimately rejected by the EU Parliament in July 2005. The European Union ( EU) is a political and economic union of twenty-seven member states, located primarily in The European Union (EU Directive on the patentability of computer-implemented inventions ( 2002/0047/COD) was a proposal for an EU law which aimed to harmonise The European Parliament ( Europarl or EP) is the only directly elected parliamentary institution of the European Union (EU Year 2005 ( MMV) was a Common year starting on Saturday (link displays full calendar of the Gregorian calendar.

Contents

Economic overview

Some of the main economic consequences in general to be expected from patenting business methods, particularly business methods implemented over the Internet, are summarized by Fine. [1] Some believe that the two areas of patenting business methods and patenting software are equivalent, but this may not always be the case.

The table below is based on, but is not exactly the same as the one provided in the a largely anti-patent paper benefits and costs which are mentioned by Hall are indicated in bold. [2] Those benefits and costs which are mentioned by that paper are indicated in bold:

Some of the economic effects of patentability
BenefitsCosts
Innovation
  • Creates an incentive for research new process/product development.
  • Encourages disclosure of inventions
  • Encourages commercialization of inventions[3]
  • Requires innovations to be disclosed to the public rather than potentially being kept secret indefinitely[4]
  • Impedes combination of new ideas and inventions.
  • Provides an opportunity for rent-seeking
Competition
  • Facilitates the entry of new (small) firms with a limited asset base or difficulties in obtaining finance
  • Creates an incentive to generate workarounds[5]
  • Inhibits the entry of new (small) firms with limited assets owing to the high cost of patent acquisition and litigation. In Economics, rent seeking occurs when an individual organization or firm seeks to make money by manipulating the economic and/or legal environment rather than by trade and
  • Creates time-limited monopolies
Transaction Costs
  • Creates a neatly packaged negotiable IP right
  • Provides a tangible asset to encourage venture investing
  • Creates patent risk uncertainty and/or search costs
  • Creates economic friction
  • Raises transaction costs for follow-on development

The relative economic significance of each of these effects varies strongly from one industry to another. Supporters of software patentability generally believe that all people including those in the software industry act relatively rationally in accordance with economic incentives and therefore will be encouraged to innovate for the benefit of society by a patent system that allows software patents. Skeptics argue that the particular nature of software and the software industry exacerbate the likely costs of patentability, and reduce or invalidate many of the incentives and benefits that patents usually supply.

Arguments for patentability

Arguments commonly given in defense of software patents or in defense of the patentability of computer-implemented inventions include the following (counter-arguments are sometimes indicated within the successive bullet points):

Arguments against patentability

Opponents of software patents argue that:

Quotes supporting patentability

William Rehnquist (Chief Justice US Supreme Court) - 1981

"A claim drawn to subject matter otherwise statutory does not become nonstatutory simply because it uses a mathematical formula, computer program, or digital computer. William Hubbs Rehnquist (October 1 1924 – September 3 2005 was an American lawyer, jurist, and a political figure who served as an Associate Justice The Supreme Court of the United States is the highest judicial body in the United States and leads the federal judiciary. Patent claims are usually in the form of a series of specified elements and corresponding limitations or more precisely Noun phrases following the description portion of the "

US Chief Justice William Rehnquist in the majority opinion of Diamond v. Diehr on why US patents, under the The patent act of 1952, can cover practical applications of computer programs[22]

Harald Hagedorn (SAP Patent Department) - 2002

". William Hubbs Rehnquist (October 1 1924 – September 3 2005 was an American lawyer, jurist, and a political figure who served as an Associate Justice Diamond v Diehr,, was a US Supreme Court decision which held that the execution of a Process, controlled by running a Computer program was . . software is a multi-billion dollar industry with expected growth-rates of 10% p. a. during the next years . . . like in any other industry such growth can only be sustained if patents are available. "[7]

Robert Barr (Cisco Systems Intellectual Property Department) - 2003

“Patents help protect the right to innovate at Cisco. "[8]

Eric Schmidt (Google CEO) - 2004

“Microsoft is intently poring over Google's portfolio of patents, hunting for potential vulnerabilities”

Comment by Google CEO Eric Schmidt in response to the anticipated attempt of Microsoft to take over the search engine market[23]

Bill Gates (Microsoft) - 2005

". . . There are some new modern-day sort of communists who want to get rid of the incentive for musicians and moviemakers and software makers under various guises. They don't think that those incentives should exist. . . I'd be the first to say that the patent system can always be tuned. . . the United States has led. . . because we've had the best intellectual-property system. "[9]

Matt Schoen (Inventor) - 2005

“While it is impossible to know whether our deep pocket licensees would have run with our intellectual property in the absence of our patent and patent pending, it is reassuring to know that when their IP counsel reviewed our patent they advised their clients to obtain a license if they wish to tread in our covered markets. ”

Inventor Matt Schoen on the necessity of his U.S. Patent 6,235,176  for bringing a new disability insurance software product market. Disability insurance, often called disability income insurance, is a form of Insurance that insures the beneficiary's earned income against the risk that disability [24]

Quotes against patentability

Bill Gates (Microsoft) - 1991

Internal memo

"If people had understood how patents would be granted when most of today's ideas were invented and had taken out patents, the industry would be at a complete standstill today. . . The solution is patenting as much as we can. A future startup with no patents of its own will be forced to pay whatever price the giants choose to impose. That price might be high. Established companies have an interest in excluding future competitors. "[10]

Douglas Brotz (Adobe Systems) - 1994

". . . I believe that software per se should not be allowed patent protection. . . "[11]

Jim Warren (Autodesk) - 1994

". . . There is absolutely no evidence, whatsoever—not a single iota—that software patents have promoted or will promote progress. . . "[12]

Mitch Kapor (Founder of Lotus 123) - 1994

"Because it is impossible to know what patent applications are in the application pipeline, it is entirely possible, even likely, to develop software which incorporates features that are the subject of another firm's patent application. A patent application is a request pending at a Patent office for the grant of a Patent for the Invention described and claimed by that application Thus, there is no avoiding the risk of inadvertently finding oneself being accused of a patent infringement simply because no information was publicly available at the time which could have offered guidance of what to avoid. "[25]

Oracle Corporation - 1994

Submission to USPTO

"Oracle Corporation opposes the patentability of software. The Company believes that existing copyright law and available trade secret protections, as opposed to patent law, are better suited to protecting computer software developments. . . "[26]

Pierre Haren, board director of ILOG - 2001

". . . The American experience of software patents is a disaster. Before imitating them we should rather try to see if they won't agree to change their system. . . "[13]

Robert Barr (Cisco Systems Intellectual Property Department) - 2002

". . . The time and money we spend on patent filings, prosecution, and maintenance, litigation and licensing could be better spent on product development and research leading to more innovation. . . "[14]

Donald Knuth - 1994

In a letter to the US Patent Office in 1994

"I strongly believe that the recent trend in patenting algorithms is of benefit only to a very small number of attorneys and inventors, while it is seriously harmful to the vast majority of people who want to do useful things with computers. "

"When I think of the computer programs I require daily to get my own work done, I cannot help but realize that none of them would exist today if software patents had been prevalent in the 1960s and 1970s. Changing the rules now will have the effect of freezing progress at essentially its current level. "

"If software patents had been commonplace in 1980, I would not have been able to create TEX. TeX (ˈtɛx as in Greek, often /ˈtɛk/ in English; written with a lowercase 'e' in imitation of the logo is a Typesetting system designed and mostly "[27]

Bruce Schneier and Niels Ferguson - 2003

"We don't believe that patents serve the security community. "

"In our opinion, the cost of the current patent system for the IT industry far outweighs the advantages. "[15]

Richard Stallman (GNU project) - 2004

"When you are restricting what the citizens can do with their own computers that's not just an economic issue any more. That's an issue of people's rights. "[28]

John Carmack (id Software) - 2005

"In the majority of cases in software, patents [affect] independent invention. Get a dozen sharp programmers together, give them all a hard problem to work on, and a bunch of them will come up with solutions that would probably be patentable, and be similar enough that the first programmer to file the patent could sue the others for patent infringement. Why should society reward that? . . . The programmer that filed the patent didn't work any harder because a patent might be available, solving the problem was his job and he had to do it anyway. . . . Yes, it is a legal tool that may help you against your competitors, but I'll have no part of it. It's basically mugging someone. "[16]

Prof. Hasso Plattner when Chair of SAP Board

". . . SAP would not need patents to protect its investments and is collecting them only as a defensive weapon to prepare for litigation in the U. S. . . "[17]

Notes and references

Notes

References

  1. ^ To Issue Or Not To Issue: Analysis Of The Business Method Patent Controversy On The Internet
  2. ^ Bronwyn H. Hall, Business Method Patents, Innovation, and Policy, May 2003
  3. ^ Patent Prospector: Patent Economics: Part 4 - Incentives
  4. ^ 2165 The Best Mode Requirement - 2100 Patentability
  5. ^ Patent Prospector: Patent Economics: Part 4 - Incentives
  6. ^ LII: Constitution
  7. ^ 2165 The Best Mode Requirement - 2100 Patentability
  8. ^ DIAMOND V. CHAKRABARTY, 447 U. S. 303 (1980) - US Supreme Court Cases from Justia & Oyez
  9. ^ Patents for Software-Related Inventions
  10. ^ Computer-Implemented Inventions (CII)
  11. ^ Patent Prospector: Patent Economics: Part 5 - Theories
  12. ^ Office Depot
  13. ^ 2165 The Best Mode Requirement - 2100 Patentability
  14. ^ Debunking the Software Patent Myths
  15. ^ The European Patent Office Homepage
  16. ^ Software patents need shelter from the storm | Tech News on ZDNet
  17. ^ Table 4: Patent Pendency Statistics
  18. ^ The patent process
  19. ^ Patent absurdity by Richard Stallman
  20. ^ IEEE Spectrum: Hooray for the Patent Troll!
  21. ^ Morag Macdonald, Beware of the troll. French ( français,) is a Romance language spoken around the world by 118 million people as a native language and by about 180 to 260 million people The Lawyer (September 26, 2005). Retrieved on 2007-07-27. Year 2007 ( MMVII) was a Common year starting on Monday of the Gregorian calendar in the 21st century. Events 1214 - Battle of Bouvines: In France, Philip II of France defeats John of England.
  22. ^ Diamond v. Deere
  23. ^ Markoff, John, “The Coming Search Wars” New York Times, February 1, 2004
  24. ^ Schoen, Matt, “Lessons from a First Time Insurance Patent Applicant”, Insurance IP Bulletin, April 15, 2005
  25. ^ Testimony of Mitchell D. Kapor in congressional hearing
  26. ^ Oracle Corporation - Patent Policy
  27. ^ Letter to the Patent Office from Professor Donald Knuth
  28. ^ Richard M. Stallman: The Dangers of Software Patents (2004-05-24)

See also

External links

Papers

Neutral sites

Sites in favor of patents on computer-implemented inventions

Sites against software patents


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