On Thursday 23 October 2008 10:09:04 Saurabh Nanda wrote:
> Whoever wants to argue about the efficacy of software patents should
> make it a point to read this essay by Paul Graham before forming &
> voicing strong opinions:
>
> http://www.paulgraham.com/softwarepatents.html
>

Nice arguments, but if I may quote him (out of context to put him at a 
disadvantage :-P ), here are some nice extracts:


"""
One thing I do feel pretty certain of is that if you're against software 
patents, you're against patents in general. Gradually our machines 
consist more and more of software. Things that used to be done with 
levers and cams and gears are now done with loops and trees and 
closures. There's nothing special about physical embodiments of control 
systems that should make them patentable, and the software equivalent 
not.

Unfortunately, patent law is inconsistent on this point. Patent law in 
most countries says that algorithms aren't patentable. This rule is 
left over from a time when "algorithm" meant something like the Sieve 
of Eratosthenes. In 1800, people could not see as readily as we can 
that a great many patents on mechanical objects were really patents on 
the algorithms they embodied."
"""


Yes, we believe that the patents system has moved much away from it's 
original purpose but we especially believe the problem is in software 
patents/algorithms. Saying that algorithms nowadays are more complex 
and therefore is ok to patent is incorrect. Algorithms build over 
others and with knowledge of previous algorithms, a lot of people are 
near about the same distance from the frontier. The chances of 
different people hitting the same method to solve a problem is much 
higher now than before. This is especially true in the entrepreneurial 
culture (startups) of today.



"""
To be patentable, an invention has to be more than new. It also has to 
be non-obvious.
"""


I have heard this several times. How do you define "obvious"? Leaving 
such a significant issue to such an ambiguous term itself breaks the 
system.

"""
Applying for a patent is a negotiation. You generally apply for a 
broader patent than you think you'll be granted, and the examiners 
reply by throwing out some of your claims and granting others. So I 
don't really blame Amazon for applying for the one-click patent. The 
big mistake was the patent office's, for not insisting on something 
narrower, with real technical content.
"""

So the system requires applicants to attempt to overreach? And what is 
the implication of that on public freedom?


"""
Where Amazon went over to the dark side was not in applying for the 
patent, but in enforcing it. A lot of companies (Microsoft, for 
example) have been granted large numbers of preposterously over-broad 
patents, but they keep them mainly for defensive purposes. Like nuclear 
weapons, the main role of big companies' patent portfolios is to 
threaten anyone who attacks them with a counter-suit.
"""

Another example of how patents have moved away from their original 
intent. They are no longer an incentive to invent. They are more like 
tactical business weapons. Used as defense by the very people who have 
caused this situation to come about.


"""
We tell the startups we fund not to worry about infringing patents, 
because startups rarely get sued for patent infringement. There are 
only two reasons someone might sue you: for money, or to prevent you 
from competing with them.
"""

So startups, the really innovative side of the business today, doesn't 
need patents to innovate? I find it very inconsistent myself. I thought 
most startups nowadays, who focus on innovation(rather than just 
providing "solutions"),  measure their success by the patents they 
manage to claim.

"""
If your startup grows big enough, however, you'll start to get sued, no 
matter what you do. If you go public, for example, you'll be sued by 
multiple patent trolls who hope you'll pay them off to go away.More on 
them later.

In other words, no one will sue you for patent infringement till you 
have money, and once you have money, people will sue you whether they 
have grounds to or not. So I advise fatalism. Don't waste your time 
worrying about patent infringement. You're probably violating a patent 
every time you tie your shoelaces.
"""

Well, this is exactly the problem we were talking about.


"""
We do advise the companies we fund to apply for patents, but not so they 
can sue competitors. Successful startups either get bought or grow into 
big companies. If a startup wants to grow into a big company, they 
should apply for patents to build up the patent portfolio they'll need 
to maintain an armed truce with other big companies. If they want to 
get bought, they should apply for patents because patents are part of 
the mating dance with acquirers.
"""

See how a system which was supposed to be a vehicle of invention is now 
more of a business weapon? 


"""
Frankly, it surprises me how small a role patents play in the software 
business. It's kind of ironic, considering all the dire things experts 
say about software patents stifling innovation, but when one looks 
closely at the software business, the most striking thing is how little 
patents seem to matter.
"""

I am confused now. What are we talking about here?

"""
I'm not sure what the proportions are of the preceding three 
ingredients, but the custom among the big companies seems to be not to 
sue the small ones, and the startups are mostly too busy and too poor 
to sue one another. So despite the huge number of software patents 
there's not a lot of suing going on. With one exception: patent trolls.

Patent trolls are companies consisting mainly of lawyers whose whole 
business is to accumulate patents and threaten to sue companies who 
actually make things. Patent trolls, it seems safe to say, are evil.
...
Patent trolls seem to have caught big companies by surprise. In the last 
couple years they've extracted hundreds of millions of dollars from 
them. Patent trolls are hard to fight precisely because they create 
nothing. Big companies are safe from being sued by other big companies 
because they can threaten a counter-suit. But because patent trolls 
don't make anything, there's nothing they can be sued for. I predict 
this loophole will get closed fairly quickly, at least by legal 
standards. It's clearly an abuse of the system, and the victims are 
powerful. [8]

But evil as patent trolls are, I don't think they hamper innovation 
much. They don't sue till a startup has made money, and by that point 
the innovation that generated it has already happened. I can't think of 
a startup that avoided working on some problem because of patent 
trolls.
"""

So do startups innovate for the sake of innovation? And it is not about 
getting big one day? or not about getting rich one day? I consider this 
as a convoluted logic. Like saying "don't worry about robbers till you 
have money they can rob". It seems to make sense till you realize that 
most people don't exactly like to live a life of penury.

"""
One thing I can say is that 99.9% of the people who express opinions on 
the subject do it not based on such research, but out of a kind of 
religious conviction. At least, that's the polite way of putting it; 
the colloquial version involves speech coming out of organs not 
designed for that purpose.
"""

Guilty as charged. :)


"""
Whether they encourage innovation or not, patents were at least intended 
to. You don't get a patent for nothing. In return for the exclusive 
right to use an idea, you have to publish it, and it was largely to 
encourage such openness that patents were established.

Before patents, people protected ideas by keeping them secret. With 
patents, central governments said, in effect, if you tell everyone your 
idea, we'll protect it for you.
"""

Given a choice between software patents or software trade secrets 
(encrypted php code, anyone?) what would you prefer? I would much 
prefer the latter. It is so much more of a level playing field that 
way - at least for FOSS.


"""
In the software business I know from experience whether patents 
encourage or discourage innovation, and the answer is the type that 
people who like to argue about public policy least like to hear: they 
don't affect innovation much, one way or the other. Most innovation in 
the software business happens in startups, and startups should simply 
ignore other companies' patents. At least, that's what we advise, and 
we bet money on that advice.

The only real role of patents, for most startups, is as an element of 
the mating dance with acquirers. There patents do help a little. And so 
they do encourage innovation indirectly, in that they give more power 
to startups, which is where, pound for pound, the most innovation 
happens. But even in the mating dance, patents are of secondary 
importance. It matters more to make something great and get a lot of 
users.
"""

So he ends the essay with a complete contradiction. Why have a system 
which doesn't work the way it is intended to?

- Sandip


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