Re: Is This Foreshadowing of American Innovation?

[David Farber <dave () farber net>]

Begin forwarded message:

From: Ronald Lachman <ron () catbird com>
Date: June 24, 2009 12:28:38 PM EDT
To: dave () farber net
Subject: Re: [IP] Is This Foreshadowing of American Innovation?

There was a case last year (Bilsky) that essentially disallows  
software patents.  Although software patents have certainly been  
abused, a significant percentage of the patent office's work (and  
fees) were the result of computer software related patents.  A good  
portion of American innovation and patents in recent decades have  
revolved around concepts that are no longer allowable for patenting.  
Patent holders and inventors (like myself) are therefore not able to  
patent software related patents, and not paying renewal fees.

Although investment in innovation may be down somewhat, I am under the  
impression that it is legal precedent that is causing most of the  
patent office's budget shortfall.  Its worth a real discussion in the  
IP list, because this legal precedent is making real software and  
algorithmic innovation difficult to patent (RSA type patent would  
probably have a struggle today).  My group of companies is struggling  
to get some truly innovative things patented (ECC / new erasure codes  
and the like) and its just a different world this year working with  
the new patent guidelines that require a more "tangible" invention  
than algorithms and software.

--- Different, but somewhat related topic:
Today's regulatory environment is not only more difficult for  
inventors, but the process of raising money is made more difficult by  
regulations as well.  The unintended consequences of the Sarbanes  
Oxley act of 2002 has effectively put a $500k a year regulatory  
compliance tax on small public companies.  Most small public companies  
are (were?) technology companies, and the window for taking companies  
public is closed at least partly because of the costly required  
compliance.  Fewer successful executives want to serve on boards,  
particularly for public companies, because of the personal liability  
imposed by the 21st century trend in regulations that is generally  
less friendly to technology capitalists.

On Jun 24, 2009, at 10:25 AM, David Farber wrote:

> Begin forwarded message:
>
> From: bnmeeks () verizon net
> Date: June 24, 2009 10:29:24 AM EDT
> To: dave () farber net
> Subject: Is This Foreshadowing of American Innovation?
>
> Since we've been discussing patents in the last couple of days, I  
> thought the following short article about the PTO needing more money  
> because its revenue stream, derived from the filing of patents and  
> trademarks, has fallen off so dramatically.  What does this mean (if  
> anything) for American innovation?
>
> From Congress Daily
> http://www.nationaljournal.com/congressdaily/cda_20090624_3058.php   
> (If this link is unreachable because subscription is needed, I  
> apologize in advance):
>
> by Andrew Noyes
> The Patent and Trademark Office is asking Congress to help stabilize  
> the agency, which is facing a substantial decrease in the number of  
> patent applications filed, Acting Director John Doll told employees  
> in a Tuesday memo. The agency, which is funded through fees  
> collected from its users, this week suspended overtime pay for  
> patent examiners and this year instituted a hiring freeze. All of  
> this has been done with an eye toward avoiding furloughs.
>
> "We're now putting forward a number of different options to bridge  
> any possible gaps, and we'll also be soliciting ideas from members  
> of Congress," Doll wrote, acknowledging that in the recession, fee  
> collection could continue to decline. With the support of Commerce  
> Secretary Locke, the PTO is seeking additional cost reduction  
> measures that would save an additional $20 million in FY09, he said.
>
> [snip]
>
> Archives        





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