On Thu, 2003-10-02 at 17:18, Dan Reese wrote:
> I never mentioned "socialize healthcare" or "patent monopolies."  I just
> pointed out that if you remove monetary rewards (which patents and
> copyrights are designed to protect), then a lot of motivation to innovate
> is lost.  I also limited my comments to "a company" and excluded
> "individuals" who often have altruistic motives outside of money.

It is interesting to note that patents and copyrights that very nearly
killed several industries including aeronautics.  In fact, it was the
government "liberating" certain patents for the sake of the war effort
that really allow airplane technology to leap forward, whereas before it
was fairly slow and locked up with patents and court battles.  The
Wright brothers fought many court battles attempting to keep their
technology and know-how locked up.  Clearly they did want to make money,
and they were brilliant men, but had their's and others' patents not
been apprpriated by the government (wwI or II can't remember), I don't
know what would have happened.  Thomas Edison is another example of
stalling technology development through patents and litigation.  In fact
after Edison invented the first primitive phonograph, he essentially
shelved his invention to work on other things, such as improving the
electric light bulb.  In the meantime, another company (RCA-Victor I
velieve) came along and really perfected the idea and made it
marketable.  Outraged when RCA wanted to sell their product, Edison
launched a patent-infringement suit.  It drug on for quite a while, and
I think it settled out of court somehow, but it wasn't pretty.  It
nearly killed phonographs as far as consumers were concerned.

Another deficiency in our patent and copyright systems is that there's
no mechanism to take into account the fact that something can be
discovered by more than one person simultaneously and independently.

Therefore I propose that patents initially be granted to be of a very
short duration (all kinds of patents).  After that patent reaches the
expiry date, if the owner of the patent is still actively using the
patent in some process or product, then a normal extension can be
granted.  Otherwise the patent expires and the idea is returned to the
public domain so that someone who wants to better society can use it and
develop it.  Copyrights are another issue, and I'm in favor of
shortening their duration.  Did you know that under the pre-Sonny Bono
copyright laws, Disney's copyright on the "Mickey Mouse" character would
have expired this year?  Thanks to Bono and others, it's now copyrighted
for at least another 50 years.  Is Disney alive to benefit from this?

Anyway.

Michael


> 
> I guess I just really doubt that a scenario where the "the company
> profits without any need for 'ownership' of the idea" would work in real
> life as you suggest.
> 
> --Dan
> 
> 
> On Thu, 2 Oct 2003 20:07:58 +0000 (UTC), "Jason Holt"
> <[EMAIL PROTECTED]> said:
> > 
> > On Thu, 2 Oct 2003, Dan Reese wrote:
> > > Again, the company wouldn't have any motivation because no one will pay
> > > $10B to the company if I have the same cure "on sale" for $1B two weeks
> > > later.
> > 
> > It's interesting that you blasted socialized health care in your earlier
> > message as having no motivation to perform since it's a monopoly.  But
> > now you
> > claim that a company has no motivation *without* patent monopolies. 
> > 
> > There are several scenarios in which my solution works; I'll leave you to
> > work
> > the others out, since they're simple applications of free market
> > economics.
> > 
> > The cancer patients and insurance companies gather together their B
> > dollar
> > bounty.  They contact well regarded pharm company and offer them $B if
> > they
> > can produce a working cancer cure within a certain amount of time.  P
> > consults
> > its accountants and engineers, who claim a C% chance of finding a claim
> > within
> > the alotted time, at a cost of R dollars.  If R/C < B, they accept the
> > challenge.  In fact, if they can work out a function f(R)=C, they can
> > even
> > maximize their expected profit.
> > 
> > Note that the company profits without any need for "ownership" of the
> > idea.  
> > The patients and insurance companies have already determined that their
> > investment is worth it, and so wealth is created for them as well.  The
> > fact
> > that everyone else in the world also benefits is frosting on top.  Third
> > world
> > countries, future cancer patients and all the rest can be grateful for
> > the
> > pharm company and investors, and motivated to likewise put up cash when
> > they're able.
> > 
> >                                     -J
> > 
> > 
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Michael Torrie <[EMAIL PROTECTED]>

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