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[News] Why Patents Discourage Innovation

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What Kind Of Innovation Do Patents Encourage?

,----[ Quote ]
| Petra Moser's research comparing innovation in 
| countries with patents to those without patents has 
| shown that countries without patents tend to be just 
| as innovative, but that the innovation takes different 
| forms. Thus, patents tend to divert from the natural 
| market of innovation to areas that are more easily 
| "protectable."


Patents: Horizontal vs Vertical Innovation

,----[ Quote ]
| Its true that if you put your labor into an idea then 
| you should be allowed to consume the fruits of it, but 
| the only reason why you put that much labor into that 
| idea(or innovation or discovery) is because you were 
| excluded from using someone elseâs labor. Intellectual 
| Property is a classic solution created by the problem 
| itself, just like everything else in the world done by 
| the government.



Yet Another Study Shows That Patents Lead To Sub-Optimal Innovation

,----[ Quote ]
| A few months back, two professors, Andrew W. Torrance and Bill Tomlinson,
| published a paper on a simulation game they ran to test out some of these
| hypotheses. A bunch of folks submitted this back when it first came out, but
| I wanted to spend some time looking over the details before writing about it.
| Basically, Torrance and Tomlinson create a nice simulation system that really
| does a good job simulating the various models for innovation with patents or
| in a more collaborative world. And, what they found in the simulation they
| ran supports what has actually happened in the real world, according to the
| research we've discussed in the past:
|     These results indicate that current patent systems (that is, systems
|     combining patent and open source protection for inventions) may generate
|     significantly lower rates of innovation (p<0.05), productivity (p<0.001),
|     and social utility (p<0.002) than does a commons system. This suggests
|     that current patent systems may significantly deter, rather than spur,
|     technological innovation compared to a commons system.
| Specifically, the results compared three separate models: one where
| everything gets patented, one where it's a hybrid model with both patents and
| a common, and one that was pure commons. The results are pretty striking. In
| the pure commons (no patents) world, they ended up with more innovation,
| significantly greater productivity and massively more social utility.



Telling the Truth About Software Patents and Innovation

,----[ Quote ]
| Would abolishing software patents, then, lessen innovation among large
| companies? Again, no. IBM, Microsoft and Oracle were founded before software
| could be patented. They couldn't afford to quit innovating simply because
| patent protection became unavailable.    

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