The Economist has an article on IBM's recent patent pledge, whereby it is granting open source developers the right to freely use without royalties 500 of IBM's patents for open source development. The article calls it "a bold step that could have far-reaching implications for the computer industry." Then it begins to explain how the current patent system is strangling innovation:Indeed, there are good reasons for believing that today's system ofgranting patents is stifling innovation, not encouraging it. Patentoffices around the world have never been busier. This is partly becauseof increasing amounts of work in the fields of the internet, genomes andnanotechnology. But it is also because patent offices are being too laxin granting licences, encouraging firms to rush to register as many(often dubious) ideas as possible in an effort to erect legal barriersagainst their competitors.In 1998, America allowed firms for the first time to take out patentsprotecting so-called "business methods". These often seem to cover ideaswhich are neither useful nor wholly novel -- simple tests (together withnot being obvious) which are supposed to determine whether a patentshould be granted or not. Patents, which usually give the holder amonopoly over the process or innovation protected for 20 years, are alsobecoming more difficult and costly to challenge. In addition, the USPTOis often reluctant to turn down an application because, perversely,doing so involves more time and effort than approving it." And, they say, with China and India becoming more active in western markets, it is going to get worse. Then they cite a recent study by M*CAM, a consultancy which studiesintellectual property, which "found that more than 30% of patents makeduplicate claims, raising questions about their validity."
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