Comments for Fixing the software patent problem

Guilhem Delon  
The problem of the patentability of software leads to lengthy debates concerning the nature of software, entailing a legislative disagreement between the various state legal devices. A phenomenon of legal insecurity appears around the question. Indeed, the article presents perfectly the differences between the American and European systems, but by observing closer the jurisprudence of States within the…
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The problem of the patentability of software leads to lengthy debates concerning the nature of software, entailing a legislative disagreement between the various state legal devices. A phenomenon of legal insecurity appears around the question. Indeed, the article presents perfectly the differences between the American and European systems, but by observing closer the jurisprudence of States within the European Union on this question , we realize that Europe has difficulty to convince everybody, and collides even sometimes violently in the reluctance of some States, such as France, which seems to refuse systematically patent software. (Tribunal de Grande Instance 18th of June, 2015, one a visa application as defined in Article L.611-10 of the Intellectual Property Code).

French Courts express clearly an ill-at-ease concerning patent software. But what are the reasons? Do French judges want to destroy all the innovation incentives in this field? From my point of view, I think that it is rather the opposite, to refuse patent on software maybe a right way to promote the development and the distribution of knowledge in the ground of Information technology.

First of all, algorithms which are endowed the software are fundamental because they are basis of the IT development. The fact of patenting a software prevents the competitors from using algorithms contained in the software to develop new software. As the Professor Donald Knuth showed in his letter of 1995 sent to the American office of patents, programmers are using significant number of software to realize their work every day. If patents on the software had usually been admitted in the 1980s, an important amount of programs we use today would certainly not have been born, and the IT progress would have been terribly difficult. Worse, if the most fundamental, basic algorithms, had been patented, it would have been impossible to do anything.

Secondly, the absence of patent on software allows a more important sharing of the knowledge. Indeed, a company which conceives IT programs can easily be copied by his competitor knowing that the price of reproduction is almost nil, but it allows the company, secondly, to take advantage of the work achieved by these competitors for, in his turn, copy him and obtain a margin beforehand. And so on. Without patents, companies will more focus on the software quality improvement.

Lastly, the company which does not want to see its software copied can completely sign a contract with his customers by forbidding them to propagate outside of their company the software supplies. Customers will have only interest to respect this agreement if they want to be able to take advantage of regulary updates proposed by the supplier of the software.

To conclude, the question of the patent software is maybe a rather specific domain of the intellectual property. limit as far as possible the possibility of patenting a software and by shrinking as much as possible the duration of this legal protection seems to me the best way to favor the innovation.

Sources :
https://www.legifrance.gouv.fr/affichCodeArticle.do?cidTexte=LEGITEXT000006069414&idArticle=LEGIARTI000006279405

https://www.village-justice.com/articles/Brevet-logiciel-France-justice,20334.html

https://www.contrepoints.org/2013/02/14/114815-le-logiciel-libre-est-lavenir-du-logiciel

https://framablog.org/2014/08/11/donald-knuth-brevets-logiciels-1995/

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Loann Millet
Software patent is sure a real polemic topic. Indeed, plenty of actors are arguing about the length and breath of patents. We can see it by the gap between USA and europe point of view. Europe tend to have a more restrictive approach while the Us treat all innovations equally. But we all know that some of them need to have a…
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Software patent is sure a real polemic topic.

Indeed, plenty of actors are arguing about the length and breath of patents.
We can see it by the gap between USA and europe point of view.
Europe tend to have a more restrictive approach while the Us treat all innovations equally. But we all know that some of them need to have a different approach depending on their industries.

For example, some fields are characterized by a very fast moving market. So if we treat each industries the same way, 5 years of protection in one field can be very long and unproductive, while 5 years can feel like a second for another one.

Software is one of a fast moving market. Indeed, most of software patents have a commercial life of few years. An innovation can easily be obsolete in a very short time.
On the contrary, pharmaceuticals innovations can live an eternity.

In the situation of very short cycle, some innovations may not need large protection. Let’s take an innovation which needs 6 months for competitors to achieve the same results. The first mover will be rewarded enough during the whole time needed for the competitors to copy him and the innovation becomes obsolete. On the other hand, in the phamaceutical field, 5 years can prevent people from innovate because their innovations will last a lifetime, but when the patent will come to the end, the innovator will not be awared at all because competitors will be able to copy him.

Also, patents may be a huge problems for startups. Indeed, some companies pay like billions of dollars just to keep their patents in their hand, and every time a new innovation comes out, they offer an amount of money, innovator can’t refuse.
In result, patents are really dominated by huge companies and they make startup’s entry on the market quite difficult.

Software patents are a sensitive topic because of the abstract idea, like this idea
may not be enough to transform it into patentable subject matter.
We recently had this problem with the Alice case.
if you write your patent applications without actually defining the problem, explaining the technological solution and how it is implementing the desired functionality described in the specification, and how what you are claiming is an improvement (or at least unconventional), you will not get a patent because the claims will be patent ineligible.
The thing is, you need to write it in a very technical language following the standards. « If you want to patent software your description must be of a concrete and tangible technological innovation, and that concrete and tangible technological innovation must come through in the claims »

Breadth is restricting the patent to a specific way, a specific use. The goal is to constrain the power given by a patent.
This is also to avoid the case where companies make unclear patents to not be limited and have a wider range of use.

In conclusion,

Software is a main component of greatest innovations. It’s essential that patent system follows it’s idea to encourage innovators in all fields.
Also, software patents must be limited in length and breadth to not disturb the development of new innovations.

References :

1- http://www.forbes.com/sites/ericgoldman/2012/11/28/the-problems-with-software-patents/#5ca0a7376545

2- http://arstechnica.com/tech-policy/2016/12/these-three-2016-cases-gave-new-life-to-software-patents/

3- http://www.ipwatchdog.com/2016/11/17/patent-software-post-alice/id=74750/

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Nausicaa Aguie
This article tackles the patent issues specific to the software area. Unlike "normal patents" such as for drugs, software patents content tends to protect a broader concept of knowledge. the problem is then the functional claiming that patent holder can have. The technological implication of a patent in this area is so wide that many other software can fall in…
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This article tackles the patent issues specific to the software area. Unlike “normal patents” such as for drugs, software patents content tends to protect a broader concept of knowledge. the problem is then the functional claiming that patent holder can have. The technological implication of a patent in this area is so wide that many other software can fall in the scope of the patent, it represents a potential barrier to innovation, especially for small firms and/or start-ups whose financial means are not sufficient against major high-tech companies (GAFA and so on).

Although it is obvious that software patents have the purpose of increasing R&D as they are an incentive and a priceable reward (royalties), it might be good to reconsider the legislation.

Currently, the US protection tends to focus on the originality and inventiveness of the patent while European protection focus more on technical progress. The breadth of the patent is very different from one continent to another. In my opinion the major improvement to make at the legislation is from the point of view of the length of the patent. Considering the speed of the technological change in IT, limiting the length of the patent to 5 years would allow more start-ups to invest in R&D with tangible results for the final consumer as they would benefit from a wider and better choice.

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Jordan Oger
The idea under the creation of patent is quite simple, the goal is to promote the diffusion and the use of new innovation while preserving an incentive for people to innovate. Unfortunately, beyond these considerations, the problem today is that people are creating so many patents in so many different fields that it’s nearly impossible to build something which is…
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The idea under the creation of patent is quite simple, the goal is to promote the diffusion and the use of new innovation while preserving an incentive for people to innovate. Unfortunately, beyond these considerations, the problem today is that people are creating so many patents in so many different fields that it’s nearly impossible to build something which is not depending on any other patents without having problems. Companies are violating patents they even didn’t know where existing when they try to innovate.

The issues concerning patents are complex to solve but to make matters worse it exists differences in the legislation depending on the country where the patent is created. A harmonization and a centralization should help to have a clearer view of the different granted patent.

The problem concerning the software copyright is all about balancing static and dynamic efficiency considerations. To balance them, we have to look after two main dimensions of the patent, its length and its breadth.

The first dimension is given by the optimal patent length that can be found thanks to few calculations. The innovator’s return and the social return on innovative effort (composed of the consumer’s surplus and the industry profit) are used to find the optimal patent duration. The duration time of the patent has an opposite effect on these two functions (time is increasing innovator’s return while it is decreasing the social return), this conflict in objectives leads to the conclusion that the optimal patent duration has to be finite. The goal is to find a way to balance the most effectively the trade-off between the static and the dynamic efficiency considerations. To do so, the best solution is to have the marginal static loss equals to the marginal dynamic gain.
The monopoly power given by a patent will push companies to innovate and allocate more resources in R&D. This will lead to technological progress, economic development and creativity. The protection offered by the patent allows the firm to be protected against copy and imitation.

The idea to shorten the patent duration concerning digital technologies is, for me, a good idea for different reasons (linked to some vicious effect of patent). Firstly, patents can be a handicap to advancement because it’s impossible for other companies to build something or to use the patented information freely. This can lead the cost of innovation to rise. Secondly, the personal benefit is not counterbalancing the social cost. So the longer the patent duration, the bigger the deadweight losses are. Thirdly, the company thanks to its monopole charges the consumer with the monopoly price. Fourth, there is no incentive to push innovation further once it’s patented.

The second dimension concerns the patent’s breadth which is restricting the patent to a specific way of doing function. Broad functional terms cannot be used, this is made to avoid any abuse. By restricting the breadth of the patent, the instances want to reduce the monopoly power given by a patent. This is also to counter a bad effect where companies voluntary make unprecise patent in order to try to claim not only the process but also its goal. For me, the range accorded to a patent has to be strictly and meticulously chosen. This leads us to patents which have to be short and broad or long and narrow.

A vicious effect of the patent’s breadth to keep in mind and to try to avoid is the sleeping effect where companies are making patents just to avoid its competitors to use another substitute innovation.

We have to keep in mind that the number of patents is rapidly growing in a world where innovation has a shorter and shorter lifecycle but where the cost of innovation are constantly growing, that’s why patentability should always be reworked.

Bibliography:
Nordhaus, W. (1969). Invention, Growth and Welfare. Cambridge, MA: MIT Press.
Belleflamme and Peitz, (2010). Industrial Organization: markets and strategies, Cambridge University Press, pp. 517-521.

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Pablo Dattilesi
As we know the patent system was created to favor innovation, creativity and also investment towards research. The point here is that when the terms of the patent are too broad and the patent holder is allowed to claim ownership on any invention remotely related to the concept he created, the patent holder is making an inefficient use of what…
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As we know the patent system was created to favor innovation, creativity and also investment towards research. The point here is that when the terms of the patent are too broad and the patent holder is allowed to claim ownership on any invention remotely related to the concept he created, the patent holder is making an inefficient use of what is supposed to foster innovation. Because doing so it impedes other inventors to use that good more efficiently.

The article above highlights the differences between Intellectual property rights in the European Union and in the United States in the digital market place. The author seems mostly to refer to the way patents work in the US : the criticism is clearly directed towards the breadth of the patent that allows some patent holders to claim the ownership of a concept even though there has been no concrete technical creation from the patenter. The consequence beeing that software producer in the US are more easily rewarded fot their inventions (even if it does not include a technical advancement) than EU inventors whose patent system is stricter and does not allow patenting business processes for example. It means that there are more patentable inventions available in the US than in the EU so the incentive exists for european inventors to cross the ocean just to patent their invention and EU is loosing some of its innovation share. Without stepping up for one or the other system it seems to me that there should be an harmonization in the software patent system allowing inventors to compete between them by the same standards in every country like we already have with the PCT Union system (Not meaning that US has to join the EU in their patent system). However one can find two major criticism to make about the USPTO : firstly, for a patent to be granted it does not require the patent demander to invent something new and secondly there is the risk of a patent net (patents of smaller inventions associated with other inventions that allows the patent holder to make a claim on those patents).

Finally, focusing on the software industry and more specifically on the lenght of the patent, software industry evolves at a quicker pace than almost every other industry so thinking that way I would argue for a shorter patent term. Given that the maximum term for a patent can go up to 20 years I would advise a shorter patent term going up to maximum 5 years.

https://e-courses.epo.org/course/view.php?id=269#section-3
https://www.ipdigit.eu/2013/10/fixing-the-software-patent-problem/

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Guillaume De Munter
This article deals the controversial issue of the software patent problem. To cut a long story short, there is no harmonization of laws across countries when it comes to software patents. Each country has its own patent policy that theoretically defines the patentability of each innovation. Therefore, we can observe divergences between the USPTO and the EPO. An innovation that…
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This article deals the controversial issue of the software patent problem. To cut a long story short, there is no harmonization of laws across countries when it comes to software patents. Each country has its own patent policy that theoretically defines the patentability of each innovation. Therefore, we can observe divergences between the USPTO and the EPO. An innovation that makes the object of a patent in USA is not necessarily patentable in Europe. The European laws are more restrictive because they require a technical innovation. Inversely, a patent for a software that improves the business process can be granted in USA even if there is no technical innovation.

First of all, let us underline the importance of a harmonization of laws across countries. As Richard Gilbert and Carl Shapiro remind us, the aim of the patent system is to stimulate the innovation by rewarding the innovators. The different patent offices have to be able to provide to companies an enabling environment for innovation. Actually, it means that companies need incentives to justify huge amounts of money spent in R&D. Struggling against the uncertainty surrounding the patentability of their potential innovations is of prime importance. Thus, harmonizing the laws across countries might turn out to be a key-element to decrease this uncertainty.

Let us now move on to the issue of a patent policy. Indeed, we can decompose patent policy into different parameters: how much to reward patentees? What’s the optimal patent length and breadth? Etc. Gilbert & Shapiro (1990) identify the patent breadth “with the flow rate of profit available to the patentee while the patent is in force”. Nevertheless, if a patentee disposes of an increased market power thanks to its patent, it implies an increase of the associated dead weight loss (=welfare loss). The broader the patent, the greater its market power and consequently, the greater the associated dead weight loss. Therefore, the purpose is to determine a relevant patent policy that ensures patent length and breadth that satisfy patentees while minimizing the associated deadweight loss.

However, many different factors deserve consideration. Let us for example mention the Klemperer’s (1990) spatial model. In his model, he argued that the scope of the patent grant allows to make non-infringing substitutes products less attracting to consumers. This approach brings us new elements that can influence the optimal patent breadth and length: the importance of the scope of the patent or furthermore the existence of substitutes goods.

As a matter of conclusion, I’d like to bring my own point of view. According to me, the difficulty of the current situation results from the singularity of each situation. It would be a little bit pretentious to design a patent policy that could be applicable in every situation. Indeed, each sector presents its own parameters. Each situation diverge e.g. costs of innovation are not the same in different industries. Is it a drastic innovation or not? Do substitutes goods exist or not? Is it a fast-innovating sector or not ? Unfortunately, such a case-by-case analysis demands too much time and money. According to Nicolas Van Describes who described the massive inflation of patent applications resulting in longer and longer processing times, patent agencies are already swamped so it unfortunately seems simply not possible.

Gilbert, R., & Shapiro, C. (1990). Optimal patent length and breadth. The Rand Journal of Economics, 21(1), 106. Retrieved from http://search.proquest.com/docview/236527786?accountid=164977

Klemperer, P. «How Broad should the Scope of Patent Protection Be ? » The RAND Journal of Economics, Vol 21 (1990), pp. 113-130

Van Zeebroeck Nicolas, « Développement et impact des stratégies de dépôt de brevets », Reflets et perspectives de la vie économique 3/2008 (Tome XLVII) , p. 87-100
URL : http://www.cairn.info/revue-reflets-et-perspectives-de-la-vie-economique-2008-3-page-87.htm.
DOI : 10.3917/rpve.473.0087.

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Anne-Sophie Ries
First, i think that the Us system is better than the EU system, because someone who discover a software should be protected by a patent. He spent time and energy to create or develop this software so as someone who create an innovative, it's his right to be protected. But, i don't agree with all the US system. Indeed, as…
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First, i think that the Us system is better than the EU system, because someone who discover a software should be protected by a patent. He spent time and energy to create or develop this software so as someone who create an innovative, it’s his right to be protected.

But, i don’t agree with all the US system. Indeed, as this article says, people can abuse of these patents claiming dommage for the utilisation of their software. That assignment of patent must to be more clear and fixed. Lawyers should agree on the patent’s content, what he protects, and how long this patent will last. I tend to agree with a shorter “lifetime” for this kind of patents ; this sector is evolving so quickly that we cannot freeze evolution with too long patent. But lifetime of the patent must be reasonable to let people develop their software to their goal.

This kind of patent must be accessible by others because they need to be aware of which technology is protected by a patent to not use it and not pay dommage for using it because of a lack of information.

For the “patent breadth”, i don’t know enough about the “world of softwares” to give a pertinent opinion but I totally agree with Mark Lemley !

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Caroline Emaer
First of all, I would like to insist on the difference between the american and the european system. The US legislation is much more flexible. Indeed, they have a unitary patent system. In contrast to Europe, the same right of patenting applies to each US state. The conditions are therefore easier and the delays shorter. Another bad consequence for Europe is…
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First of all, I would like to insist on the difference between the american and the european system. The US legislation is much more flexible. Indeed, they have a unitary patent system. In contrast to Europe, the same right of patenting applies to each US state. The conditions are therefore easier and the delays shorter.
Another bad consequence for Europe is that the filing of patents is more expensive. A European innovator should pay $225,000 to file and get his patent during 20 years and an American innovator should only pay $12,500.

We should find a compromise between the two systems. Thanks to the flexible American system, we maintain progress and it allows the rapid sharing of knowledge. It is thus easier for little inventors who have lower financial resources to file a patent application. But because of this flexibility, it causes more legal conflicts which are less common in the European system.

In my opinion, we should reduce the patent protection. As a matter of fact, considerable progress are achieved everyday in this sector. Something like three years should be enough for the project to be economically viable. After these three years, it is very likely that the software will be obsolete.
Moreover, the actual 20-year patent protection could deter little innovators to enter the market. I think that it only benefits the big companies.

Concerning the breadth, I do agree with Prof. Lemley because the lawyers tend to broaden claims as much as possible to secure the strongest possible rights for clients. This problem isn’t new: Seventy-five years ago, the patentees tried to own the goal itself and not a particular machine, as said in his article « Let’s go back to patenting the ‘solution’, not the ‘problem’ ». He added that the Congress adopted a compromise position in the Patent Act (1952): « Patentees could write claim language in functional terms but when they did so the patent would not cover the goal itself; only the particular means of implementing the goal described by the patentee (and equivalents thereof). »

http://martial-foucault.com/wp-content/uploads/2008/07/ris_055_2004.pdf
https://www.wired.com/2012/10/mark-lemley-functional-claiming/

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Aman Gupta
The right way of doing anything subjective has always been a subject of debate from simple things like allocating marks in a subjective exam paper to as big as software patents. It is extremely important to grant patents in the right way as it not only acts as an incentive/motivation for developers to work harder but also if granted in…
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The right way of doing anything subjective has always been a subject of debate from simple things like allocating marks in a subjective exam paper to as big as software patents. It is extremely important to grant patents in the right way as it not only acts as an incentive/motivation for developers to work harder but also if granted in the wrong way may slow down the progress in technology.
I am in support of USPTO rather than EPO, as according to me patent protection should be granted to software been if doesn’t solve any technical problem. There is a probability that the idea may come of use to someone else. If the patent doesn’t solve any technical problem then no one will use it and the patent owner will automatically not benefit from the patent. But even the slightest chance of it being useful somewhere should not be overseen.
The length of software patents cannot be decided to be general to all. The rate of progress of technology varies significantly across various fields. For example, the technology used in Canada changes very slowly, not much changes have been observed in the last 6-7 years, but the technology in laptops and phones change almost every year. So I feel a classification has to be made where patents in different fields have different lengths. Thus would be a more rightful and just way of doing things.
Finally, I would agree with Prof. Lemley that a specific way of implementing a function should be granted patent rather than the software function itself. Functional claiming will allow some patent holders to unfairly claim overs others invention even if the method of achieving the same end result may be different and hence will create a bad sentiment.
To conclude I would say the granting of software patents should be done with utmost care keeping in mind all the aspects discussed above. There should be specific rules that govern but these have to be changed as and when required.

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Maxime Servais
The software patent problem is a rather difficult and unclear dilemma as there are many factors at play. Countries across the world are not unanimous about the patentability, the length and the breadth of software’s. The aforementioned issues are difficult to tackle and have sparked a lot of interests and have led to many debates. One can identify two main…
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The software patent problem is a rather difficult and unclear dilemma as there are many factors at play. Countries across the world are not unanimous about the patentability, the length and the breadth of software’s. The aforementioned issues are difficult to tackle and have sparked a lot of interests and have led to many debates. One can identify two main contrasting approaches, the one of the USPTO versus the EPO. The European Patent Office (EPO) is known for its more restrictive approach as it states that “inventions that use computer programs to provide a business process – not a technical process – are not patentable”. On the contrary, the United States Patent and Trademark Office (USPTO) grants software patents even if they do not solve any technical problem. I will discuss below what I think would be the right duration and breadth of software patents.

To further support what I think, I will make use of the following example : Back in 2001, a company named MercExchange (a small patent-holding company) sued Ebay so as to prevent Ebay from continuing to use its ‘Buy It Now’ feature. This feature allowed users to purchase items without going through the bidding process. After years of intense debate and appeals, the law ruled unanimously in Ebay’s favour stating that MercExchange did not use its patent itself and thus was not harmed by the fact that Ebay did. One can learn a few things about how the American process works.
First of all, the court ruled in favour of Ebay as members of the court were convinced that MercExchange wasn’t harmed by Ebay. The final decision could have been very different from what it was if MercExchange was using the patent at the time. But had the legislation about software patents been clearer, there wouldn’t have been any need of discussion. Had the same situation happened in Europe, there wouldn’t have been any drama. I thus believe that there is a need for a reform in the system in the US and I suggest the following things :
(1) Inventions that use computer programs to provide business processed shouldn’t be patentable;
(2) The length of the patent shouldn’t exceed more than 3 to 5 years depending on the degree of technological improvement and complexity;
(3) ‘functional claiming’ (patenting the problem that needs to be solved rather than a specific way to implement that function) shouldn’t be allowed anymore.

Belleflamme,Paul & Peitz,Martin, (2010). “Industrial Organization,” Cambridge Books, Cambridge University Press, number 9780521681599.

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Tonneau Mattis
Fixing the software patent is very complex. I think there isn't one good way to fix software patent. I will try to develop my point of view concerning the pros and cons of software patents, what patent duration and breadth I would recommend. First of all, the proof that software patent is very complex is that there is no harmonization across…
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Fixing the software patent is very complex. I think there isn’t one good way to fix software patent. I will try to develop my point of view concerning the pros and cons of software patents, what patent duration and breadth I would recommend.

First of all, the proof that software patent is very complex is that there is no harmonization across countries on this matter. I think it illustrates the problem that no one agrees on the software patent terms. In my opinion, it is important to fix a same legal framework across the world even if there still remain some difference between countries due to the culture, the economic and social differences. But I think the major rules for fixing software patent must be the same everywhere. Otherwise it will lead to confusion as we can see this article. Information is important and rules have to be clear for everyone and everywhere.
Moreover, I find that the granting practice of the EPO is more convenient for the fixing of software patents. She is more precise and clearly require an innovative creation. On the other side, the US practice is unclear and to vague what can create the confusion and all the debate on which new software can be granting or not. The US practice does not promotes innovation of software but the function of this one, that’s why i would prefer to choose the EPO rules.

Then, concerning the length of the patent software, I would recommend a shorter patent term for digital technologies. Digital technologies are progressing and developing very quickly since they exist. Computer software and the computer technologies are greatly changing all the time that a long patent term is i think not useful.
Furthermore, digital technologies are going out of vogues very quickly and previous patent can be very useful to create other invention.That’s why I also think a shorter patent term is good enough.
I mean by short patent term a period of 5-7 years.

Finally, concerning the breadth, I agree with Eric Goldam who says that many software patents use “functional claiming,” which is patenting a software function rather than a specific way to implement that function. As I say before, I think software patent regulation should be more specific and focus on the innovative side and not as the US practice.

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Tomasz Chwaja
First of all, talking about software patents we should take into consideration advantages and disadvantages of this phenomenon. In this post, I would like to list them and later touch the topic of breadth and patent duration. Advantages of software patents: What is really important, software patents, like any other type of patents, allow everyone to take get to know about new…
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First of all, talking about software patents we should take into consideration advantages and disadvantages of this phenomenon. In this post, I would like to list them and later touch the topic of breadth and patent duration.

Advantages of software patents:

What is really important, software patents, like any other type of patents, allow everyone to take get to know about new inventions and as a consequence help to develop even more sophisticated solutions.
Secondly, they encourage people to innovate because they are sure that nobody will steal their idea. Therefore they are more likely to spend even more money on innovations.
Moreover, software patents can defend small business from bigger companies which can easily copy their ideas. When these ideas are defended by a software patent, it is easier for small companies to survive.
Finally, patents can be useful for customers. When companies are more likely to invest in R&D, because of patents, the cost of products and services eventually goes down, what is really beneficial for clients.

Disadvantages:
On the other hand we can talk about cons of software patents.
Firstly, we can say that software is math. Therefore, as math is not patentable, software should not be patentable as well.
Secondly, what is really important, companies try to take advantage of software patents with an objective of blocking the development and inventions of other companies, which can lead to monopolies and higher prices for consumers.
What is more, the time the companies are waiting for granting a patent is about 3-4 years which means forever in the IT field. Therefore we can say that patent law is not applicable in this case.
Finally, patents are not often used as a source of information for other companies because they are not described clearly.

As we can see, software patents are the subject of debate nowadays. In the world in which every company somehow operates in IT industry (because of software they use) it is the issue of really high importance. If we add the fact that they last really long and they are usually too broad we can say that they do not fit the constantly changing IT software environment.

Therefore, to conclude, I think that EPO laws are better than these in United States. They restrictive approach allows customers to take an advantage from inventions and patents and this is, according to me, what is the most important thing.

Sources:
http://endsoftpatents.org/
https://en.wikipedia.org/wiki/Software_patent_debate

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Clemens Schreiber
If we want to analyze how to limit software patents in terms of breadth and length it might be useful to look at the effect of software patents in general. As I understand it from the blog article and from the numerous previous comments, there exists a general agreement among economists (although maybe not everyone of the commentators counts herself/himself…
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If we want to analyze how to limit software patents in terms of breadth and length it might be useful to look at the effect of software patents in general. As I understand it from the blog article and from the numerous previous comments, there exists a general agreement among economists (although maybe not everyone of the commentators counts herself/himself to that profession) that patents increase the incentive for software companies to invest in R&D. The main reason is of course that companies can easier capitalize on their innovation and therefore attain a higher return on investment. Software patents can also be seen as a flexible tool to commercialize innovation (Vishnubhakat 2005)(1). If a startup for example rather wants to focus on the development of new software than on the commercial distribution it can license its product and sell it to another company more easily.

However as shown by Nordhaus (1969)(2) every patent faces the tradeoff between the marginal dynamic gain and the marginal static loss. The gain results from higher return on investment for the company due to a longer patent life. The loss results from higher spending on R&D and a decrease in consumer surplus (due to the monopoly position of the patent holder) when the patent life increases. In the model we assume a convex cost function, which leads to diminishing returns to R&D activities(3). Hence the patent length must increase exponentially with the cost (for R&D), which ultimately leads to a lower consumer surplus. Therefore a patent that is granted for a “game changing” software which has very high development costs must also have a very high patent length and therefore decreases consumer surplus significantly. In addition the patent is only granted to one company and could therefore prevent the development of the software through developers outside the company for a very long time.

A solution to this problem could be that the costs as well as the user rights for a complex software such as a computer operating system, is shared between members of a large community. Especially if the software developers are at the same time also its users. The obvious example here is Linux.

In conclusion I agree with the previous comments that software patents must be limited in length and breadth in order to not disturb the development process for new technologies. In addition I believe that software patents are not the ultimate solution in order to attain the optimal degree of innovation, because it is only granted to a single company. The great amount of developers that contribute to open source software might agree with that. At the same time I believe that we must find alternatives to patent rights in order to increase the sustainable development of open source software.

1 https://pdfs.semanticscholar.org/ef49/8f828e3bdb5dab1b99e4cc3cb0b5aa8ec2e9.pdf
2 Nordhaus, W. (1969). Invention, Growth and Welfare. Cambridge, MA: MIT Press.
3 see Textbook Belleflamme and Peitz, 2010, pp. 517-521

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Zhenyu Lao
When discussing the optimal structure of the patent regime, it is believed that the aim of maximizing social welfare of consumers and innovators can be measured by minimal deadweight losses that originate from two major sources: First: Advances in technology are protected by patents that enable inventors to introduce then to the market at a higher price. Second: Patent oblige…
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When discussing the optimal structure of the patent regime, it is believed that the aim of maximizing social welfare of consumers and innovators can be measured by minimal deadweight losses that originate from two major sources:

First: Advances in technology are protected by patents that enable inventors to introduce then to the market at a higher price. Second: Patent oblige consumers to purchase protected products at a monopoly price and prevent them from acquiring low cost substitutes that fall within the scope of patents.

Actually, Klemperer(1990) mentioned that narrow, infinitely lived patents are desirable when preferences of consumers are indifferent among variety of patented and unprotected products, while wide and short lived patents are more desirable when consumers either decided to purchase one of the products or none of them.

Thus, when analysising the software industry, for consumers, they would most not likely to decide not buying the product when they believe the price is too high. So the first circumstance could be applied where Klemperer believed arrow, infinitely lived patents system should be used.

Gilbert and Shapiro(1990) share similar notions with Klemperer, investigating that trade-off between patent breadth and length and demarcating the structure of the legal regime that minimizes deadweight loss and sustain a predetermined reward. Their work focuses on identifying the breadth of infinitely-lived patents. And infinite duration is justified as the optimal length of patents that maximizes social welfare.

However, when looking at the process and models of analysis, there are still some significant problems should be addressed. First, the reward of inventors cannot be accurately predicted, but rather be determined ex post. Meanwhile, another challenge is to define empirically the state-of-the -art of technology and to provide a measure for patent height, in order to avoid granting patents to technologies that ate already present or to minor improvements in existing technologies.

Reference list

Harrison, E. 2008 Intellectual property rights, innovation and software technologies: The economics of monopoly rights and knowledge disclosure. Cheltenham, UK: Elgar, Edward Publishing.

Klemperer, P. D. 1990 “How Broad Should the Scope of Patent Protection Be?” Working Paper, Oxford University

Gilbert, R. And Sharpiro, C. 1990 “Optimal Patent Length and Breadth” The Rand journal of economics, Vol. 21, pp. 106-112.

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Nicholas Chin
The main problem with the software patent war stems from the intangible nature of these patents, leaving room for negotiation on the subjective understanding of what the patent encompasses. The software patent system was created at a time when people did not fully understand the effect as to which software impacts daily life and it was never adjusted to reflect…
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The main problem with the software patent war stems from the intangible nature of these patents, leaving room for negotiation on the subjective understanding of what the patent encompasses. The software patent system was created at a time when people did not fully understand the effect as to which software impacts daily life and it was never adjusted to reflect the reality of its field.

As tangible patent markets are already standardized and there is not much room for negotiation on what they entail, there is not much debate and the ideation process has expanded. That is not to say the software patent market has not seen the same growth, but if there is not some sort of reform and amendment to the system, motivation for innovation will start to decline. The generality and broadness of the current system leaves room for large MNEs/patent trolls to bully potential incumbents through diverging their spending from R&D to legal fees – hindering the innovation process.

The importance of this need for amendments can be seen in industries that you would least expect it – where the hardware is rather standardized and software is the differentiating factor. For example, many two major action camera companies DJI and GoPro just released drones who are comparable in how their hardware address their customers needs. What has created a gap in their sales is the UI of their software and how that address the customer needs – an area that can be much more creative and broad. This can also highlight how software influences the use of the hardware and further extending the potential differentiating factors.

Finding the optimal level of software patent specificity will help incentivize people to innovate and think of novels ways to solve problems, whilst still leaving room for future innovators in the same space. The first mover advantage needs to be standardized as to not give the primary patenter all the rewards, yet still encourage them to create.

Another issue that needs to be addressed is the time for getting a patent on these software innovations. Naturally it takes a long time to acquire a patent, but an even faster turnover than the hardware of technology is the software. Software updates are continuous as the feedback end users give ultimately affects the following software update – and in between those updates could be incremental/radical innovations. Either or could be protected by a patent, but the timespan is too long – leaving the potential patentee vulnerable. Because in a few years time, a patent troll or large MNE can claim that X amount of years ago the potential patentee encroached on their territory and now wants to retroactively claim what belongs to “them”.

Situations like this are unfortunate and will do the industry no justice when it comes to pushing the boundaries of what is possible. Software engineers are all aware of the reform that needs to be enacted, it is now just up to the rest of us to realize this as well.

Sources: http://www.theverge.com/2016/9/30/13119488/poll-gopro-karma-or-dji-mavic-pro
http://www.forbes.com/sites/ericgoldman/2012/11/28/the-problems-with-software-patents/#60b101d65457
https://techcrunch.com/2014/03/08/software-patents-are-bullshit/

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Mathieu Phuong Henaux
“Patents are vitally important to protecting intellectual property” as mentioned in the article. The difficulty is to define the term “software”. The European Patent Office (EPO) has defined it more as a computer-implemented invention on their website (link below). I will base my opinion on this definition given by the EPO. Then, I think we will agree that software has drastically…
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“Patents are vitally important to protecting intellectual property” as mentioned in the article. The difficulty is to define the term “software”. The European Patent Office (EPO) has defined it more as a computer-implemented invention on their website (link below). I will base my opinion on this definition given by the EPO.

Then, I think we will agree that software has drastically increased in terms of use. Software is being used for lots of different purposes. Its use is increasing in all fields of technology. For instance, smartphones use software, computers, even schedules for public transports use software. This shows that software is omnipresent.

Another problem is to choose whether to patent a new software or not whereas new software is being invented the whole time. The more programs are being created, the harder it must become to be innovative enough to get a patent.

Furthermore, we all know that patents are also an incentive to innovate yet, as stated on the site of the EPO “Patents are granted in exchange for making inventions public.” The problem here is, according to me, that making inventions public will decrease the expected returns for software already in the short run and not only in the long rung. This means that programmers knowing that returns will not be as high as expected might just decide to not patent their invention and might as well reduce their willingness to innovate.

It is clear that patents give an advantage to the one applying for it, but for how long will the patent really grant an advantage ? It can be five years, more, less ? Here we notice that despite the good things that we get from patents, these are not eternal. The problem here is the duration of the eventual patent granted for a software. Also to bear in mind, is the fact that Sophie Brasseur pointed out in her comment of the 10th of November concerning the start-ups. Effectively, even if small businesses invent something great, it will be really hard to cope with giants on the market. I think that in such cases it is more likely that inventions will just be bought by the giants.

The final subject I would like to discuss is the harmonization on the matter of software patenting. The US and the EU have different granting practices on the matter. I do not see any ideal granting practice yet I think the EPO is closer to a fair process than the US. The US should, according to me, try to adopt a practice similar to the one of the EPO. Technically speaking, in my understanding, the USPTO could just grant a patent for lines of codes even if it is not totally novel and inventive, which would not make a lot of sense. Therefore, I think the US should base its granting practice on the one of the EPO.

As mentioned earlier and in the article, time or length. I must agree with Richard Posner when he recommends a shorter patent term for digital technologies. The real question then remains, how long ? And again, will it really help ? Whereas patenting makes the invention public, it provides other firms and inventors with the source of the patented software. Others might use this to their own advantage of course. In this case, the question is how the patent will intervene with software based on the patented one.

Software patenting is a really hard topic. The granting process and conditions clearly still need to be precisely described and maybe even harmonized. The EPO is on the right path I think, but the USPTO has improvements to make from my point of view.

Additional source :
-https://www.epo.org/news-issues/issues/software.html

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Giulia Sargenti
I am pretty sure, at least I hope, that we all agree that patents’ function within our society is the incentive for innovation and development in exchange for a “prize” in terms of monopoly power and gains granted to the inventor for the sale and licence of those innovative contributions which society benefits from. When we think about softwares…
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I am pretty sure, at least I hope, that we all agree that patents’ function within our society is the incentive for innovation and development in exchange for a “prize” in terms of monopoly power and gains granted to the inventor for the sale and licence of those innovative contributions which society benefits from.
When we think about softwares market that incentive persists. It is still important for softwares producers to have motivations to engage resources in R&D; so why should software invention field considered differently from others?
As referred to in the article, US and EU normatives are working in an opposite direction with american softwares being patentable, provided that they were inventive and original, while european ones needing to be “technical process” creators in order to achieve patentability requirement. The consequences of the scenario may be that software producers realities which are working in the US will be granted an advantage for their original contributions compared to those who are placed in EU in terms of broadness of the type of invention to provide. This problem may be even exacerbated if we consider those small firms that may incur in much more difficulties while deciding whether to invest in R&D or not compared to big companies that are not hands-tied investing in innovation without the compensation that patents may represent for their investment costs. This may lead to a situation of more potential innovation in the american case market, with the contribution of small firms innovations too, maybe in some cases from innovative start-ups; while less incentives and, thus, less innovation in the european software market.
Therefore the need for a unification of software patents’ regulation is evident; the analysis of how much length and breadth, as addressed in the article, could be harder to evaluate. Considering that software market production is becoming increasingly important in our daily lives, both as consumers and as workers, I would personally suggest to have broader patents regulation following the american example and a duration over time not so prolonged. This would lead, in my opinion, to foster research incentives, letting all the players contribute to the acquaintance, but not relaxing too much their R&D activity once gained the patent protection.

SOURCE:
https://www.ipdigit.eu/2013/10/fixing-the-software-patent-problem/

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Pauline Naveau
The New York Times article “The Patent, Used as a Sword”, told the story of Mr philipps who had worked for three decades on voice recognition and deserves only a partnership in Siri, while Apple and Google used his technology. Nuance also tried to call for their rights with their patent, in vain. According to both parts, the marketplace…
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The New York Times article “The Patent, Used as a Sword”, told the story of Mr philipps who had worked for three decades on voice recognition and deserves only a partnership in Siri, while Apple and Google used his technology. Nuance also tried to call for their rights with their patent, in vain. According to both parts, the marketplace for innovative ideas has been corrupted by software patents used as destructive weapons. Moreover, “In the smartphone industry alone, according to a Stanford University analysis, as much as $20 billion was spent on patent litigation and patent purchases in 2010 and 2011.” (Duhigg, Lohr, 2012). Advantages of patents themselves are evident (give incentives to innovate which benefits the entire society,…).Now the question of what should be patented and how arises.

First of all, I would say that today is the day of the global harmonization. We see the CETA, TTIP and other international trades every time we open a newspaper or turn on the tv. Thus, why so important things that are the patents shouldn’t also be the same everywhere? The problem is that the patent protection is provided on a “country-by-country basis”, and the rules of each country are only applicable within their borders. For example, Amazon.com, after having a patent, attacked Barnes & Noble for violating its “one click buy” but it was immediately settled. Amazon has failed to gain a similar patent in Europe. For me an harmonization between those laws is an emergency in the 21st century.

Then, I disagree with the patent length proposed by the Electronic Frontier Foundation, that is 5 years, for patents that cover softwares. As we learnt last week in the course about IP, the demand for a patent is very long and expensive, and remove one after a so short time would not be rewarding regarding the hard work it required, even if innovation in software is very quick. However, this kind of limitation in “length” could avoid such “a real chaos” as Richard A.Posner says.

Other solutions were claimed in the “patent breadth” field, including that of Professor Lemley, says that “patents do less good and cause more harm in the software industry than in other industries such as pharmaceuticals”. His solution is “allowing patents only on methods of achieving the function, not the function itself”. Indeed, the Patent Act of 1952 adopted a compromise position: patentees could write in functional terms, but the patent would cover only the particular means of implementing that goal. I agree with this means of avoiding the situation Mr Philipps faced.

To conclude, the debate concerning software patents is still open, and needs a clarification and an harmonization.

Sources :
http://www.nytimes.com/2012/10/08/technology/patent-wars-among-tech-giants-can-stifle-competition.html?pagewanted=all&_r=0
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2117302
http://www.wipo.int/sme/en/documents/software_patents_fulltext.html
http://ec.europa.eu/growth/industry/intellectual-property/
https://en.wikipedia.org/wiki/List_of_software_patents/

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Vandan Jain
When it comes to software patents, we have to keep in mind that the software industry changes at a very quick pace. If we look at all the top companies who have the highest market capitalisation, software companies comprise a majority of them. Just like any other patent, the objective of determining the length and breadth of the software patent…
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When it comes to software patents, we have to keep in mind that the software industry changes at a very quick pace. If we look at all the top companies who have the highest market capitalisation, software companies comprise a majority of them.
Just like any other patent, the objective of determining the length and breadth of the software patent seems two fold:
One, to motivate companies to invest in the research and development in order to bring out better products since these companies have to capacity to do it.
Second, is to ensure that the life of the customers improve on a consistent basis.
Given the fact that it is so easy to develop a new software in order to improve the existing process, I feel the breadth of the software should be small. It is also die to the fact that given its relative ease, software companies do fight out for the top spot thereby giving the best of the products to the consumer. So they have the incentive as well as the capacity to innovate.
If we keep the breadth too much, we won’t be able to reap the benefits of companies like facebook and google who improved on orkut’s and yahoo’s idea respectively.
Similarly, I also feel even the length of a patent should be high. Software industry is prone to disruption. We cannot just let the status quo be maintained.
I feel if the software patents do get a huge wavelength, we won’t be able to dream of better process and products in the future.

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Brasseur Sophie
With the development of software industry across the world, the issue about the software patents has become more and more brawling internationally. By weighing the pros and cons about the software patents, I ‘ll try to figure out, from my point of view, if patents do more harm than good, at least for what it is now, and explain why…
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With the development of software industry across the world, the issue about the software patents has become more and more brawling internationally. By weighing the pros and cons about the software patents, I ‘ll try to figure out, from my point of view, if patents do more harm than good, at least for what it is now, and explain why here.

First of all, let me think of the advantages and disadvantages of the software patents. What we could consider as a positive point is that the goal of patent rules is to stimulate incentives for innovation which have many benefits for society as a whole. But, unfortunately, these benefits are countered by the fact that patents reduce competition and can thus slow the rhythm of innovation. In addition, the developments in software technology are very quick, and it may not be worth paying for the patent application when significant changes will for sure be made to software programs.

Indeed, as it is said in an article, Charles Duhigg and Steve Lohr give a critical view of the current state of the US patent system. Clearly the authors show that the software patent rules are not in line of what is done today. Of course, at the time, it was fully justified to grant patent protection to whom has had a revolutionary idea. But, today, with the pace of technological development being so quick, by the time software falls out of patent protection, it will be so obsolete as to no longer be marketed.

In order to illustrate this part I will base myself on the example of the Apple and Google case. It is explained, in this case, how the marketplace for new ideas has been corrupted by software patents used as destructive weapons.
Indeed, in this example, is shown that a small start-up cannot cope with giants such as Apple and Google. Each one does not have the same budget to spend in war of patents. Effectively, in this article, we learn that, in 2011, for the first time, spending by Apple and Google on patent lawsuits and patent purchases exceeded spending on research and development of new products.

To sum up this part, I’d say that in the software industry the costs may outweigh the benefit: the nation’s patent rules are inadequate in today’s digital marketplace.
Therefore I think we should change the whole system and introduce a new one, rather than debating the length or depth of the project. Otherwise, it will have to be discussed again in a few years when it will be understood that even a shorter patent is not what it takes for software.

But then, what should be done to resolve this issue? I guess there are plenty other alternatives to patents. First of all, the open source community consists in a way for individuals and small organizations to truly put things in the public domain and to aid as much of the public as is possible. Secondly, let’s talk about licensing tool. Effective use of licenses can grant software owners significant legal powers to control the use of the software by partners and other users of their software. There still remains a negative point because it can only be enforced against those who agree to it, and not against others. Move on to the trade secrets: they protect a company’s secret items that have commercial value. However, trade secrets do not require any filings or public disclosure, as is required with patents. More, trade secrets do not expire, so a secret can remain protected indefinitely. I’ve also learned that while the value of patents in protecting IP has been under attack this year, trade secret protection has been on the rise. Another alternative would be the copyright registration. While not required to create rights in a copyrighted work, registering software with the U.S. Copyright Office grants software owners significant legal protections and enforcement tools. The last one, is the trademark registration. An U.S. Patent and Trademark Office (USPTO) trademark registration can help ensure that no one in the U.S. can market similar products under a name or logo that is “confusingly similar” to the registered mark. The USPTO trademark registration process is much simpler and less expensive than patents.

While trade secrets and other alternatives cannot replace patents in all patents, they do offer a number of benefits over patents, especially where the inventions are easily kept secret and are inefficient with easy reverse engineering. Accordingly, companies should seriously consider their use in their overall intellectual property protection program.

Sources :
http://blogs.lawyers.com/attorney/intellectual-property/software-protection-strategies-alternatives-to-patents-30762/
http://www.ipwatchdog.com/2014/12/09/trade-secrets-a-viable-alternative-to-patents/id=52554/
https://opensource.com/law/12/9/closing-software-patent-loophole-professor-lemleys-new-proposal
http://www.buydig.com/blog/software-patents-pros-and-cons/
http://www.nytimes.com/2012/10/08/technology/patent-wars-among-tech-giants-can-stifle-competition.html?pagewanted=all&_r=0
http://www.onecommunityglobal.org/open-source-and-patents/

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Nico Hofmann
In our society we want economic growth fueled by innovation to maximize our utility. To support and increase innovation, and therefore R&D, we as a society grant patents which gives the inventor a monopoly position hence the opportunity to reimburse the research costs and aggregate money for future R&D. This system works well enough for mechanical innovations but the old…
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In our society we want economic growth fueled by innovation to maximize our utility. To support and increase innovation, and therefore R&D, we as a society grant patents which gives the inventor a monopoly position hence the opportunity to reimburse the research costs and aggregate money for future R&D.

This system works well enough for mechanical innovations but the old criteria can’t be easily used for software code. Having said that, first it is important that we as a society decide whether we want to grant patents for software innovation in the first place.

Reasons that would support a patenting of software are mainly beneficial for big companies. By granting software patents the owner can aggregate money to lunch new projects which maybe lead to new innovations. Even though the big companies would gain the most, it is important also to mention that small and mid- sized companies by having a patent could protect their innovation from big companies which could copy the innovation and sell it at a lower price.

Even though, protecting software innovation sounds well at first sight it also has its downsides. Starting with small and mid-sized companies: running a small company, maybe even be self-employment, one can’t afford a separate department that takes care of all patent issues, which produces a disadvantage. This disadvantage consists out of legal uncertainty, because software contains many fractions of algorithms, this generates the possibility of patent infringements, and also of high process costs in a case of patent infringements, on either side. These disadvantages can reduce the overall amount of innovations in society. However, the inventors which will be disadvantaged the most are innovators of open-source software. By having the same problems like the small companies they don’t have the budget to fight or pay for patent licenses, which could consequently lead to a stop of producing open-source software. The reason why open source is so important lays in the fact that open-source software allows the consumer to modify and change the software in a way that it fits his or her needs, maximizes his or her utility, thereby keeping the monopoly of big companies in check.

Granting software patents would lead to an enlargement and consolidation of the monopoly of big companies. At this point we could discuss whether monopolists are more or less likely to innovate but for the sake of staying on topic I’m going to assume that monopolies in the field of software supply are counterproductive regarding innovation.

If I now want to maximize the utility of society I would say that software patents are not necessary: Looking at our current position we can see that we have a good developing software industry which inventions are already protected by copyrights and patents would destroy competition and therefore innovation. Following this and also taking into account the negative aspects mentioned above there is, in my opinion, no need for further protection using patents.

But assuming that software patents are introduced I would recommend granting the patent only for a short period of time. The reason for me would be that nowadays, money in software industry is generated, amongst others, by offering support and training courses and these sources are independent from the patent. Companies can aggregate this money to invest in R&D. In addition to this, I’d say the period of validity for a patent should be 2 years at maximum after publishing the software. The reason for my decision is straight forward: in software industry, software when it gets released often has a hype and therefore many buyers in the first year but I believe that in the second year the amount of people buying this product is low, therefore the amount of additional money is not decisive whether to invest in more R&D or not, whether to increase society’s utility or not.
At the end, I doubt that having a patent for software increases the utility of society.

• Patents, Innovation and Economic Performance: OECD Conference Proceedings;
OECD 14.10.2004; DOI: 10.1787/9789264015272-en
• Harrison, Charlotte; Software patent ruling gives pointers for diagnostics , Nature
Reviews Drug Discovery. Aug2014, Vol. 13 Issue 8, p569-569. 1p, DOI:
10.1038/nrd4405
http://www.informatik.uni-oldenburg.de/~iug09/igr/koenigssee.informatik.uni-
oldenburg.de_1211/index.php/software/4-softwarepatente/74-pro-und-contra.html
http://blog.fczb.de/2009/02/linda-und-das-gnu-warum-open-source-software-
wichtig-ist/

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Thomas Heremans
After having read the numerous comments strongly arguing in favor of one patent system or the other, I have decided to defend another position: an urgent call for harmonization. Indeed, what strikes me with this article and its comments is the fact that you somehow have to take the American or European point of view. However, I believe that in…
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After having read the numerous comments strongly arguing in favor of one patent system or the other, I have decided to defend another position: an urgent call for harmonization. Indeed, what strikes me with this article and its comments is the fact that you somehow have to take the American or European point of view. However, I believe that in the globalized world in which we are living today and where software’s are used worldwide in millions of devices, it is urgent to go for harmonization. Indeed, if there exists differences in what is patentable in terms of software’s between the EU and the US, it is only because both regions have a different history of justice and culture even if patents have a common original goal: protecting intellectual property.

We all know how America promotes entrepreneurship and as the Congress once stated: “anything under the sun made by man” deserves patent protection to promote innovation. In the US, lobbies play a central role in regulations and the settlement of legal disputes often involves large amount of money compared to Europe where stricter rules are a result of decades of a culture that fears taking risks.

However, the main actors on the software market are global companies who do not care about these culture differences. Indeed, they simply maximize their profit which in most cases results in patenting in the US where the rules are broader and settlements can be won with ease if you have the cash required to hire the most skilled advocate in software protection. This is why I call for an urgent harmonization of the rules between the two systems. I realize that this is no simple issue but I fear that if we do nothing, we will all end up with a patent system ruled by global companies to their own benefit. Indeed, as long as courts will be debating on the issue of software patenting, we get every day more influenced by external actors.

Sources :
Material taken from the Intellectual Property Teaching Kit prepared by the European Patent Office (EPO)
https://www.uspto.gov/patents-getting-started/general-information-concerning-patents#heading-4
https://en.wikipedia.org/wiki/Software_patents_under_United_States_patent_law
https://en.wikipedia.org/wiki/Software_patents_under_the_European_Patent_Convention

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Cristina Brito
‘Modern society relies heavily on computer technology.  Without software, a computer cannot operate. So it is no wonder that intellectual property protection of software is crucial not only for the software industry, but for other businesses as well.’ Software patenting has been actively discussed in the last decades – the issue arose ever since computer programs were deemed patentable in the…
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‘Modern society relies heavily on computer technology.  Without software, a computer cannot operate. So it is no wonder that intellectual property protection of software is crucial not only for the software industry, but for other businesses as well.’
Software patenting has been actively discussed in the last decades – the issue arose ever since computer programs were deemed patentable in the USA and in Europe, during the late 1970s – with arguments focusing on wheatear it should be possible to patent software and to what extent, emphasizing the economic consequences of such action (it is important to recall that, ultimately, the goal of patent law is be to create incentives for innovation benefiting society as a whole). When analysing software more in depth, it is possible to conclude that some characteristics of software technology represent significant problems to patent regulation. By being categorised as a pure information good, software was considered to be outside the scope of patentable inventions (with copyright being the usual form of intellectual property protection). Additionally, compared with other fields, software products have very short lifecycles, thus products may become obsolete in a very short period of time.

A major advantage of software patents translates into having society benefit from more innovative actions in information goods (which without patents could be easily copied), thus posing as an incentive for investors to pursue further innovation. Also, patents may be crucial for software businesses, whose creations are mainly in the form of ideas, as it can ultimately benefit small firms entering the market as well as attracting investment. Some studies suggest that software patents may even overcome copyright limitations – stating that patents protect functionality while copyright only protects expression –, however this argument is considered very questionable.

As the number of litigation over software patents increase, it has raised great attention from several economists, with most arguing why such patents should not be granted. Nobel prize winner Gary Becker, on The Reforming of Patent System, made a strong case against it arguing that disputes over software patents are among the most expensive and counterproductive, and while their exclusion from the patent system would discourage some software innovations, the saving from litigation costs over disputed patent rights would more than compensate the economy for that cost. Similarly, economist Alex Tabarrok argues that, even though patents in industries such as pharmaceutical may be imperative – mainly due to abnormally large innovation costs –, software industry is characterised by more balanced innovation and imitation costs, thus, patent protection is not needed to incentivise innovation (Linux is a good example, within software industry, of an innovation successfully developed in open-source). What follows as main disadvantages is that software patents may actually discourage innovation – the consequence of “offering” a 20-year monopoly – as well as being used to intimidate existent competition and new entrants.

Nowadays, there are existing attempts to adapt patent regulations in order to considerate software patents’ special characteristics. However, the need for making software innovations patentable remains highly questionable, as by analysing the facts, it may be observed that incentives for innovate in software business were never an issue (without the existence patents), thus suggesting that it may be a question of a strategy rather than aiming to enhance overall welfare.
To sum up, and weighing the pros and cons, it is my opinion that software patents’ costs outweigh its benefits. Nevertheless, if having to accommodate its existence, I believe that measures such as significantly reducing the patent length – for instance 5 years, as suggested by the Electronic Frontier Foundation – and restrain its breadth – agreeing with professor Lemley that patents should be allowed only on methods of achieving the function, not the function itself – should be imposed.

Additional Sources:

World Intellectual Property Organization http://www.wipo.int/portal/en/
Becker, G. (2013). “On Reforming the Patent System”.
Lee, T. (July, 2013). “Here’s why economists hate software patents”, WSJ.
Sarvas, R. “Costs and Benefits of Software Patents to Society”
End Software Patentes http://endsoftpatents.org

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Nicolas Juckler  
The Software patents are the patents that cover software ideas. These patents are not patenting the program itself but the ideas about the software. That’s not the same. The ideas about a software is broader than only the software. The patent office currently approves patents for very vague ideas about software, without demanding more specific information’s about the program or the…
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The Software patents are the patents that cover software ideas. These patents are not patenting the program itself but the ideas about the software. That’s not the same. The ideas about a software is broader than only the software.

The patent office currently approves patents for very vague ideas about software, without demanding more specific information’s about the program or the specificities. We can see that the software’s patents are very broad.

We could also notice that there is no harmonization across the countries about patent laws.
In the US, the USPTO (United States Patent and Trademark Office) delivers patents for software that accomplish specific functions. The patents cover not the specific method of achieving a specific function but the accomplishment of the specific function. So, if another program is created to achieve the same function using another method, this program couldn’t be launch because the patent prevents other innovators of making programs for the same function. Even if the program is better than the initial one.

These software patents are blocking the development of programs. For example, if a developer wants to implement a banal feature like a video format or a nested menu in a program, he has to contact the patents holder for using his idea. But the holder can refuse or ask money. And for a definite period (usually 20 years) no one can use a patented idea without asking to the author.
The result of this kind of patents is monopolies in different domains. Which involves higher prices and less choices on the market for the consumers. And so, a loss of social welfare.

But in Europe, the EPO (European Patent Office) has a more restrictive approach about patents. Only the software’s that provide a technical process are patentable. In comparison with the US system, the system delivers patents only if the software solve a technical problem.

But the US and European patents length remains still very long and broad.
Today, it becomes hard to know if a technology is patent free or not because the patents are very broad. An inventor could be lawsuit with patent infringement without knowing he was violating a patent with his innovation. That’s problematic.

We can notice that software patents are inhibiting the competition and the innovation in the software sector. Furthermore, the software innovation can happen without the government intervention. In fact, all the virtual technologies we use now were initially developed before the software were patentable. The internet, Emails, MP3 were initially developed by enthusiastic programmers. None of them had patents and they have built successful business around their software.

I agree with what Richard Posner said: “A patent covering a software should survive for a term of five years, beginning from the date the application is filed.” The actual length of 20 years is too long. And after 20 years, the disclosed idea become almost useless because the software technology evolved very quickly. The Moore’s law says that the number of transistors in an integrated circuit doubles every two years. This law shows well that technology evolve very quickly and that even after 5 years, a software could become obsolete.
Software patents with a length of 5 years could be far enough.

For the width of the software patents, the current EPO policy seems to be better than the US one. Giving patent only for the method a achieving a specific function will allow more competition in the sector and also more innovation. Too broad patents will create monopolies and are against social welfare. The state have to imitate the width of the software patents for these reasons.

Sources : http://endsoftpatents.org/
https://www.gnu.org/philosophy/software-patents.en.html
http://en.swpat.org/wiki/Why_abolish_software_patents
https://www.uspto.gov/

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Balaji Ramachandran
The issues of software patents becomes very crucial, especially with the U.S Supreme Court very recently taking the side of Symantec against notorious patent troll Intellectual Ventures in what is likely to be a landmark case for software patents. I’d like to tackle two aspects of software patents – first, should they be allowed, and second, what their duration should…
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The issues of software patents becomes very crucial, especially with the U.S Supreme Court very recently taking the side of Symantec against notorious patent troll Intellectual Ventures in what is likely to be a landmark case for software patents. I’d like to tackle two aspects of software patents – first, should they be allowed, and second, what their duration should be.

First, on whether software patents should be allowed, we need to look at whether the constraint of being a ‘software’ invention, i.e., with no hardware backing, is sufficient to disqualify it from protection by law. The current standard used by the European Patent Office, on allowing software that advances the technology of its age to be granted protection, is insufficient to address the varied aspects of software. For instance, the software that ran the erstwhile Google Glass is prodigious in and of itself due to its ability to perform complex computing inside of a spectacle shaped device. It received patent protection, however, only when clubbed with its hardware components. This brings to light the fact that inventions for decades where the software is the underlying component of change gets patent production only when it is part of a hardware device.

Continuing this practice would do injustice to the millions of new inventions that are powered by software. For instance, Google and Tesla’s advancements in driverless technology are primarily powered by smart AI software, and its presence in an automobile should not be a factor in deciding whether it gets patent protection or not. As long as it meets the criteria of novelty, non-obviousness, and utility, it should be considered a legitimate category of patent protection.

To counter the potential abuses of this category would not be very different from limiting the effect of pharmaceutical companies to renew patents by making small changes to their drugs’ formulae. If proper restrictions are placed disallowing software patents from claiming to achieve more than the ambit of their invention, this can remain a well-regulated and fair means of intellectual property.

Second, on deciding potential lengths for these patents, we need to look at the following criteria – time taken to develop, time to monetize, competitor reactions, market trends for improvements in technology, time taken to verify veracity of claim, and so on. Software inventions, unlike its more historical counterparts in the computing world, have much shorter development cycles. R&D invested to develop new chips vastly exceeds what it spent to develop new technology. In this context, we can say that it is justified to significantly reduce the length of the patent. On time to monetize, as software as a product has more potential to be freely distributed due to the power and reach of the Internet, it suggests an easier path to monetization of the invention. However, the possibility of competitors imitating software improvements and the possibility of fakes coming out are much more likely in the case of software. In market trends for improvements, we can see that software is usually updated every 1-2 years, suggesting that software gets outdated very quickly. In terms of verifying software claims, it is unlikely to take more time and attention than the regular categories, as the high-skilled knowledge required to evaluate a patent’s claim is equally applicable here as it is in other categories. Based on these inferences, I believe that a patent term of 5 years is a reasonable amount of protection for a software patent.

References:

[1] http://www.cafc.uscourts.gov/sites/default/files/opinions-orders/15-1769.Opinion.9-28-2016.1.PDF

[2] http://www.wsj.com/articles/SB10001424127887323335404578444683887043510

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Lachapelle Nathan
Hello, I would like to contribute to the topic and share my point of view here. First of all, I totally agree with Eric Goldman. We can look at the origin of patents to see that their goal is to compensate the problem of appropriability. As Belleflamme & Peitz (1) put it: government ought to intervene to promote dynamic efficiency, so…
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Hello,
I would like to contribute to the topic and share my point of view here.

First of all, I totally agree with Eric Goldman. We can look at the origin of patents to see that their goal is to compensate the problem of appropriability. As Belleflamme & Peitz (1) put it: government ought to intervene to promote dynamic efficiency, so to provide the right incentives to create and innovate. However it does not seem appropriate that you can patent a computer program capable of achieving a result (e.g.). I think it is too broad and because there are many ways to achieve a similar result, allowing such a thing would result in strong monopolies. For instance: if you have a monopoly in a computer program capable of solving calculus, you have a monopoly on a broader range of programs’ possibilities than if you just had a monopoly on one specific program (such as microsoft excel let’s say). Thus the damage done to the consumer would be larger because you would have hinders entries on several programs and your monopoly covers what could have been a bunch of small monopolies but competing with each other in some cases. In this case I argue, the deadweight loss (a measure of market inefficiency) is larger in the one case than in the latter. And, in a consumer perspective you would have less choice with broader patents than with very specific patents. My answer for this question is: patent should not be too broad. This point of view has been shared by the Obama administration (2).

Secondly, I would like to talk about asymmetries between software’s. Indeed you have software that can be used for a very long time (such as Microsoft excel) meanwhile others would be used for a very short time. I think for example of trading software, those are usually in harsh competition and there are always new improved software’s by the end of the year. So the length of a patent depends of the context. As shown in this article (3), in very competitive markets, patenting can be very handy.
The point I am making here is that we should allow a case-by-case study for software. We cannot set a fixed duration for every ever patent. There are areas where 5 years would be plenty enough because after a year the software is out-dated but in some case the software could be use for 50 years (I doubt that could be the case but for the sake of the intervention I would say so) with the patent, and thus that would generates issues regarding competition. So I argue here that authorities should “study” the market before granting a patent for a certain period of time. Here we face a trade-off between three things:
How long the patent could be used before turning into a useless patent
How long is enough to make sure that people have incentives to invest
How long is not too long to let others enter the market before it’s too late
To answer those questions we could look at the history and the past law suits so that we have a background to see in which sectors patent should be shorten or extended. Where it is likely to generate monopolies and so on.

Lastly, there are also good consequences of patents. Once you apply you have to disclose you invention and 18 months after you apply for a patent you have to the invention becoming “public” and it has therefore a positive externality on society because people can look at the invention and all the details and the science can progress faster. This should not be neglected neither.

(1) (1) BELLEFLAMME P., PEITZ M. (2010), Industrial organization: Markets and Strategies, Cambridge university press

(2) http://www.nytimes.com/2013/06/05/business/president-moves-to-curb-patent-suits.html?_r=0

(3) http://bits.blogs.nytimes.com/2012/11/20/smartphone-patent-wars-show-the-system-works-patent-chief-says/

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Axelle Charlier
The patentability of software is however the subject of controversy between the different market players whose interests are often contradictory. On the one hand, major software vendors and companies, in sectors such as telecommunications, electronics, aerospace and automotive, supply or use of integrated software products are favorable to patentability. On the other side, small publishers and IT service companies are…
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The patentability of software is however the subject of controversy between the different market players whose interests are often contradictory. On the one hand, major software vendors and companies, in sectors such as telecommunications, electronics, aerospace and automotive, supply or use of integrated software products are favorable to patentability. On the other side, small publishers and IT service companies are worried about the patentability or are opposed, while free software developers are radically opposed.

Regarding the argument of breath and length, the patent indeed need some adjustment need to be done and We could not imagine an industry that would be able to patent every single aspect of its product or software for 20 years. that kind of behavior or regulation wouldn’t allow enough competition on the market. For example, when nintendo developed his new console and all the games that fitted with it, if they would have been able to patent all the programmation behind it we would ave never heard about PSP from sony and others. Also they wouldn’t have be able themselves to make partnership with Ubisoft.
Furthermore each design choice carries the risk of stumbling over a patent that already exists, which can destroy your project. The development of a large and complex program means combining many ideas, often hundreds or thousands. In a country that allows software patents, there is a strong chance that a substantial part of your program ideas will be patented already by various companies. Perhaps hundreds of patents cover parts of your program. A study in 2004 found almost three hundred US patents that covered various parts of a single important program. This is so much work to achieve this type of study, only one was completed.

But can we really consider a software as an invention ? On that debate we could further elaborate and would require as much attention as the length of breath of the patent itself.

A program is expressed with a « programming language », coded language. Every programming language has its own dictionary of instructions and its rigid syntax. The programming activity is therefore to express the operations performed by a computer in the form of a code consistent with the rules of the programming language chosen by the programmer. The resulting code (called “source code”) is therefore nothing but a text written in a coded language course, intelligible to any programmer who master computer technology and programming language in question. Therefore, positive law equates computer programs to literary works (in the sense of Article 2 of the Berne Convention) and protects the copyright.

According to one definition, including resumed by the European Patent Office (EPO), “the invention is a technical solution to a technical problem, through technical means to repeat.” However, although a computer program comes in the form of a code written in a programming language, it is nonetheless “technical modeling of a practical problem in order to achieve a certain result “. The highly technical and functional characteristics of the computer program undoubtedly gives it the features of an invention. This apparent affiliation with the concept of invention brought the EPO and the national patent offices to deliver, since the late 80s, tens of thousands of software patents.

As conclusion, I think patenting software could give incentive to innovate but it has to be regulated to keep a good balance and avoid unfair monopolistic situations.

https://www.gnu.org/philosophy/fighting-software-patents.fr.html
http://www.patentlyapple.com/patently-apple/2016/05/future-apple-devices-will-automate-home-automation-processes-according-to-user-behavior-patterns.html
http://www.patentlyapple.com/patently-apple/2015/12/a-second-major-home-automation-system-invention-from-apple-surfaced-last-week.html
https://aful.org/wikis/membres/Pourquoi-etre-contre-les
https://www.ipdigit.eu/2012/02/breveter-les-logiciels-une-fausse-bonne-idee/

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Edouard Fabri
Before entering the problem of the length and breadth of a software patent itself, I would like to consider first the question of the harmonization, either for the hardware than the software patents. Although the criteria regarding patentability of many institutions worldwide are quite similar, there are still a lot of differences and sometimes confusions because the inventor does not…
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Before entering the problem of the length and breadth of a software patent itself, I would like to consider first the question of the harmonization, either for the hardware than the software patents. Although the criteria regarding patentability of many institutions worldwide are quite similar, there are still a lot of differences and sometimes confusions because the inventor does not know to which institution he has to refer or in which category his invention belongs to. This is due to the globalization effect implying that a new invention brought to the market often reaches quickly other markets, where different conditions regarding intellectual property apply. According to the International Trade Administration (ITA), an inventor can protect his invention only in the country or region where he has been granted a patent from the local institution. Taking into account the criteria of other regions or countries becomes therefore a difficult problem that leads to additional costs and losing precious time.

Moreover, the absence of harmonized patents results in difficulties and confusions, especially regarding the question of the software patents. It is indeed illustrated in the article where the EU and US governments have different approaches concerning the granting of software protection. In these kind of globalized markets where information is at the very centre, I do believe that harmonization would be a progress as it would facilitate the purchase of intellectual property across countries.

If I had to implement the harmonization, I would rather choose to implement the EU software patenting system worldwide rather than the one of the US. The EU definition of a patentable software invention is according to me more relevant compared to that of the US which is more abstract and too wide. It highlights the invention itself, a concrete solution to a problem, while the US system grants a maybe too wide protection and focuses too much on the function of the invention. That is why I do believe that granting software patents to concrete and implementable inventions is more appropriate. It goes a step further and reduces the scope of the invention, encouraging somehow people to innovate.

Concerning the length of that type of patents, I do not think it is necessary to grant patents that last more than 5 years. The software industry is a fast changing environment, softwares are created and improved everyday all over the world and inventions becomes quickly overwhelmed by new inventions. The idea is that these new inventions will make no more sense for the previous inventions to be longer protected as they will not bear the risk of being copied anymore. On the contrary and especially in the software industry, these inventions will serve as an important tool for other inventors who will invent something else a bit later. That is why I do believe that software patents should not last too long: previous inventions have positive effects on new inventions by being a necessary platform or tool on which to rely. Finally, my summarized recommendation is that legislators should be aware that granting too long or too wide protections could prevent other ideas to be developed.

Sources:

https://www.stopfakes.gov/article?id=Is-My-US-Patent-Good-in-Other-Countries

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Guillaume Duckerts
We can have another look at this issue by considering the spillovers issued by the technological innovations available after the duration of a software patent has expired. From the article of Michael Noel and Mark Shankerman, the drawn conclusion based on an empirical and statistical study allow us to notice that in the software complex technology market, spillovers are positive…
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We can have another look at this issue by considering the spillovers issued by the technological innovations available after the duration of a software patent has expired. From the article of Michael Noel and Mark Shankerman, the drawn conclusion based on an empirical and statistical study allow us to notice that in the software complex technology market, spillovers are positive and especially very important. Therefore, the shorter the patent, the more and faster spillovers for the all industry, which is good for the consumers.

Considering the shared ways of communication in today’s globalised world, the fact mentioned here above is brought up to another level. Indeed, since progress is moving forward at a speed increasing every day, the medieval patent system – especially since one of the main purposes is to promote innovation doesn’t seem to be the right solution – since it seems to slow the all process of innovation in those fact-moving markets.

Regarding the patent system goal to allow the owner to make some profits out of the object of the patent, it seems to me that software innovations might be less costly to develop because of the fast moving technology and the fewer investing compared to, for instance, the pharmaceutical industry. Therefore, it would be a solution to decrease the duration of this kind of patents.

Finally, considering the breadth of patent, I believe that the new process should be granted a protection, not the goal. I totally agree in this sense with Eric Goldman. Furthermore, it is said in the article of Noel and Schankerman that greater fragmentation of patent rights increase R&D of the firm. Although this is for sure a positive effect, we shouldn’t forget to consider the fact that if also increase the transaction costs for all the existing patents among the rest of the firms. Is this a good aspect or not, definitely something to investigate further?

NOEL M., SCHANKERMAN M., 2013, Strategic patenting and software innovation, The journal of Industrial economics, vol. 56, no. 3

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Kabanda Alice
The patent of software has been highly debated since many years. First thing we can notice, is that the patent is essential in order to encourage technological innovation. In the case of the software patent, it is the 'invention' which is implemented in the software which is being patented. According to this, anyone who try to use that invention, no…
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The patent of software has been highly debated since many years. First thing we can notice, is that the patent is essential in order to encourage technological innovation. In the case of the software patent, it is the ‘invention’ which is implemented in the software which is being patented. According to this, anyone who try to use that invention, no matter how it is implemented or in which language or even if they have developed the invention independently, will be infringing. An exemple of software patent is Apple who has patented the “bounce-back” feature of iOS. This allows him to prevent Android competitors from copying this aspect of appel user interface.

One of the main reason why companies choose patent instead of copyright, it is the strength of protection provided by the patent system. Indeed, copyright only attaches to the software code itself. So it is easier to reimplement the ‘idea’ behind a copyrighted software work.

The patent system protects diverse industries from everyday kitchen utensil to a nanotechnology chip and they are all governed by the same rules even though they innovate very differently. In my opinion, some rules must be change to be adapted to a specific innovation. Indeed, 20 years of protection might make sense when talking about drug companies which need long patent windows because of clinical testing, or complicated physical processes but for software I agree with the amazo founder ,jeff Bezos, who suggests in his open letter that an appropriate term for software patents would be 3 to 5 years because softwares aren’t where you might have to tool up and build factories. A good software innovation can catch a lot of wind in 3 or 5 years.

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Cedric Haddad
Concerning the software patent, I personally think that there is an undeniable positive effect of maintaining it and it allows a lot of firms to invest in new technologies and give a warranty for investors. Moreover, the different sectors must be seen differently because of the realities of a pharmaceutical process which does not face the same problems of a…
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Concerning the software patent, I personally think that there is an undeniable positive effect of maintaining it and it allows a lot of firms to invest in new technologies and give a warranty for investors. Moreover, the different sectors must be seen differently because of the realities of a pharmaceutical process which does not face the same problems of a software industry.
On the one hand, It is important to foster these kinds of patents because it is a way for governments to reward the innovators by giving them a valuable warranty: a monopoly right in exchange of socially valuable elements such as investment in R&D, a public disclosure of those R&D and a right to replicate the technology after some years.

However, on the other hand, there is actually the first mover advantage that can be important for an investor and replace the effect of IP rights. It can allow enough time for businesses at the beginning to break-even their business process and it exists some real cases of this. (1)For instance, Nestcape (first to enter in the market of internet browser) briefly produced huge gains for shareholders before the rise of Microsoft explorer browser. This strategic advantage gave them the opportunity to break even but also gave the opportunity for competitors to enter the market and create an aggregate benefit .(2) It has also be shown that even if product markets are dominated by firms with large R&D budgets, small new entrants are those who drive the technological progress .
After all, I think that it is important to notice that a large number of software were created without any IP incentives at all .(3) An important example can be the free and open-source software community that led to major positive impacts on the economy . Indeed, some software like Linux, Apache, MySQL or PHP gave the opportunity to lots of creative people to set up new profitable businesses.

Concerning the patent breadth, it is unfortunately important to notice that there is a high level of abstraction, especially in the software patents. In my opinion, even if a patent can be unclear by the fault of the “functional claiming”, a problem which is not quoted is that a software cannot be patentable by the same way than drugs. Indeed, when a company designs a drug, it is difficult to find a different way to have the same results that the patented process with the same cost structure. In a software technology, for instance a programming to solve a solution, the fact is that to make a software, there are a lot of ways of coding and as a result, the solution is solved and is the same. However, finding new lines of codes “have a very low cost” (comparing to finding an alternative chemistry process). So it is logical that the breadth is vaguer because it rewards the very hard work of programmers and give them a warranty that even if their code lines are copied, their business model will be preserved by the patent.
Moreover, the patent time is lower (5 years) in comparison of a pharmaceutical process (20 years). It is a good tradeoff to offset the fact that the software patent has a higher abstraction. Moreover, the technological sector is so changing so fast that more than 5 years of protection may be an obstacle for the development of the sector.
References:
(1) https://hbr.org/2005/04/the-half-truth-of-first-mover-advantage
(2)https://www.bcgperspectives.com/content/articles/technology_software_globalization_ahead_curve_lessons_technology_growth_small_business_leaders/?chapter=5
(3) http://opensource.com/business/13/1/impact-open-source-business

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Andrea Italiano
I am pleased to give my opinion taking inspiration from some relevant elements discussed in this article by P.Belleflamme. At first I will try to raise some issues regarding the EU vs US criteria on software patentability, then I will proceed in giving an answer to the optimal lenght-breadth combination of this kind of patents. I noticed that there are not so…
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I am pleased to give my opinion taking inspiration from some relevant elements discussed in this article by P.Belleflamme.
At first I will try to raise some issues regarding the EU vs US criteria on software patentability, then I will proceed in giving an answer to the optimal lenght-breadth combination of this kind of patents.

I noticed that there are not so clear-cut boundaries between US and EU criteria on software patentability, in pratice. The case of Amazon “1click” software (1) is emblematic in this regard: the specific software arguably represented a perfect example of implementing a business method. The patent, not surprisingly, was effectively granted in the US in 1999 and not in Europe. However, that was not due to it being considered a business method or ‘software as such’: even the EPO originally considered it patentable and it effectively reached the third stage of examination.
At the end it was the inventiveness step that was found lacking, when findings about prior art emerged. Of course inventiveness is a principle shared by the americans.
There are other cases in which the patent was not granted in Europe contrary to the US: the case of Microsoft’s “Time based hardware button for application launch” (1), for example. The reason why it reached patentability in the US was that the claim of it effectively improving the functionality of a button, was accepted.That was not deemed sufficient in Europe.

My opinion is that, in these cases, court discretion plays a much bigger role than application of written law: Some clearer guidelines and articles are strongly needed.
What’s more, I share Lemley’s view (2) in saying that it is not ‘bad’ to patent a really inventive software, it may be good to reward such a step. The real issue in software patenting being granting rights only to the specific methods, such as in the pharmaceutical industry, rejecting all ‘functional claimings’. I agree this could offset the relevant problems (patent thicket and patent troll). Patenting only specific methods also lowers the extent of monopoly power by large software developing firms.

Finally, relating to the breadth-lenght issue, it is clear that in a fast paced industry, as already said by my colleagues in previous comments, the lenght has to be decisively shorter comparing with other industries (say, the pharmaceutical one). The point is that it has not to be paired with large breadth (as generally with patents (3)) because in general the costs of R&D to be recovered are lower. The relatively low costs associated with high possible gains are a reason why it is always convenient for firms and private inventors to be on the frontier of software innovation.

References:

(1) http://www.clarkemodet.com/blog/2014/12/software-patents-US-vs.-Europe.html#.VjplWoQ79E4
(2) https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2117302
(3) Belleflamme and Peitz, 2010, pp. 517-521

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Faizan Rasool
The issue of patenting software is not a simple one. As highlighted in this article, the three elements of Matter (patentability), length and the breadth are extremely important aspects. I agree that the EU approach to patenting is far more sensible than the one in the USA. To me, the most logical step is the implementation of clear and concise guidelines referring…
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The issue of patenting software is not a simple one. As highlighted in this article, the three elements of Matter (patentability), length and the breadth are extremely important aspects.
I agree that the EU approach to patenting is far more sensible than the one in the USA.

To me, the most logical step is the implementation of clear and concise guidelines referring to the breadth and matter of a Patent. This is extremely important; as pointed out in the NY Times, over-broad nature of the Voice recognition led to litigation and the undoing of decades of work through financial costs.
Overall, the over-broad nature of these patents has led to record levels of industrial expenses that are ultimately non-productive. the figure of $20 billion is no joke, and should be considered a MASSIVE red flag.
The problem is also that US Patenting system is also not taking into account the ‘inventiveness’ of a software, ultimately giving patents to functions that have to be used many times over in many unrelated endeavours.
The strategy should therefore be modification of the US patenting system to include ‘Inventiveness’ as a criteria. On a larger, global scale, the above suggested modifications to the Breadth of a patent should be carried out.
With this new definition of what in a software should or should not be patented, and whether the software is inventive and whether it actually achieves the goal that the inventor set out to achieve, the new law should be able to cut litigation costs as well as excessive firm closure.

As for the Patent length, a shorter length is recommended. There is increasing evidence that Patents for outdated software is hindering the creativity in the software-making realm. Shorter lengths would allow a better pacing of new technology releases, and better augmentation and integration of new technology with old technology, all the while avoiding the firm closure and unnecessary litigation.

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Jan Kock
In his present article, Paul Belleflamme subsumes the differing approaches to software patents between the US and EU. Furthermore, he illuminates this topic with respect to its three main dimensions, which are the questions of patent matter, breadth and length. In the following, I concentrate on the questions what the optimal breadth and length of software patents should be. In…
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In his present article, Paul Belleflamme subsumes the differing approaches to software patents between the US and EU. Furthermore, he illuminates this topic with respect to its three main dimensions, which are the questions of patent matter, breadth and length. In the following, I concentrate on the questions what the optimal breadth and length of software patents should be. In doing so, I start by defining the goal of the protection of intellectual property, and the optimality it needs to achieve between different societal objectives. Afterwards, I put these differing perspectives into the current context, which are the variations in software patent practices between the EU’s EPO and the US’s USPTO. Hereby, I particularly relate to the underlying political forces and the influence of certain interest groups. These latter two arguments also explain why I am personally in favor of short lengths of software patents, and at the same time supportive of a narrow patent breadth, while totally excluding the patentability of those innovations who solely target functionality.

To begin with, I want to make clear that the protection of intellectual property via patents does not constitute an end in itself. It rather serves as an intermediate means to an overarching objective: to keep the growth rate of intellectual property on a level that is optimal for both current and future generations of society. This “optimal” rate is of course unknown. Hence, one might look at the trade-off that defines this rate: on the one hand, incentives for companies to invest into R&D need to be maintained, which is only possible in competitive market economies via institutions that guarantee adequate capital return on R&D, e.g. through profits from transitory monopolist positions. On the other hand, society also profits from the possibility that new innovators, such as e.g. small start-ups in the technology scene, are able to quickly improve upon existing methods and hence increase general welfare. For instance, software products form the base of almost everybody’s daily routine in developed countries, ranging from the common online bank account over the daily utilization of smartphones to the usage of word and excel in most jobs of the modern knowledge economy. All of these innovations were initially developed by small start-ups, most of which have by now become large enterprises. Many facilitations of daily life are especially acknowledgeable in areas that are hard to monetize, e.g. the increased possibilities to contact with friends and family via the communication program skype. Hence, one might make a case here for possibly increasing social and societal returns to scale from having particular software products available for continuous improvement through competing companies, and hence a case against excessive granting of software patents.

Of course, so far I only mentioned the interests of a widely dispersed group of profiteers, which are naturally in a worse position than established software companies to intermediate their interests in a targeted way to policy makers and the relevant institutions. Given the massive presence of large-scale software producers in the US (IBM, Microsoft etc.) and their likely influence on legislative and executive procedures, it is not overly surprising that patentability of software products is indeed far more common in the US than in the EU, and seems to be much less balanced with respect to the above mentioned broader societal objectives. Furthermore, since European officials and politicians are well aware that they are lagging behind the US in terms of technological creativity, they also face more incentives to keep a level playing field, such that potential startups are not facing additional hurdles in their attempts to catch up to US companies.

Given the enormous technological progress in these fields of entrepreneurial activity within short periods of time, I hence consider it as essential to only grant short-term patents in these domains (say a maximum of five years) in order for Europe to not lose further grounds vis-à-vis its strongest competitor, the US. Furthermore, it also think that it will be equally important to strictly exclude those software products from patentability which possess so-called “functional claiming”, since these would guarantee the incumbent US companies to inhibit potential European competitors and hence solidify their dominant position eternally.

Both arguments above are admittedly biased towards a Pro-European perspective. However, and in order to come back to the social objectives mentioned in the beginning, I believe that it is better for European economies to actively partake in the race for technological progress than rather taking only the passive part. This is of unique importance since these new technologies are increasingly affecting also sensible parts of our digital selves, for example the protection of privacy rights of personal data, which is considered a much less important issue in the US. Last but not least, I also think that the maintenance of technological competition between the EU and the US increases the benefits of all those of us who profit from daily software utilization, be it for commercial or non-profit purposes.

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Wilberz Francois
Software Patent is currently a problematic topic in the world of intellectual property. Indeed, the view of numerous actors tend to differ about the length and the breath of the patent. The difference of legislation between Europe and America shows already an impressive gap in the mentalities. As Ritej Bachhawat clearly highlights in his previous comment, it is mostly due…
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Software Patent is currently a problematic topic in the world of intellectual property. Indeed, the view of numerous actors tend to differ about the length and the breath of the patent. The difference of legislation between Europe and America shows already an impressive gap in the mentalities. As Ritej Bachhawat clearly highlights in his previous comment, it is mostly due to the different economic situations of the software industry in those parts of the world. However, the legislator’s beliefs does not necessarily reflects the opinion of the people concerned by those rules. Indeed, detractors of the software patent system want a softening of the current software patent legislation.

From my point of view, I disapprove the US policy which tend to patent more the software function in abstract ideas than new technical improvements as it is explained in this article. It favors patent trolls (1) and big corporations which dispose of broader resources and are more aware of the current legislation than smaller developers. In a few words, it seems to me that it represents an important brake for innovation for smaller players. However, the recent case of Alice Corporation vs. CLS Bank International (2) might announce the end of patent troll in the US. (Supreme Court strikes down a patent for the reason that it only stated descriptions of abstract ideas ) (3) . If we consider the US approach, I consider that the length of the patent (20 years) need to be discussed (4). One of the characteristic of the software industry is that this industry benefits quite importantly from first mover advantage as the life cycle of a software is quite short and the time required to develop a competing software represents a good proportion of this life cycle (5) . In addition, it should be sufficient for the company either to reach enough customers to be partially protected by the so-called network effect (“When a network effect is present, the value of a product or service is dependent on the number of others using it” (6) ) and/or to innovate or develop a new product. Therefore, a period of time superior to 5 years can be considered as an eternity in this field contrarily to other patent field as mechanics (7). Although, software development requires less resources, we cannot totally deny their hard work and make disappear the software patent system. It would not be fair for developers companies even if some people consider that “the exclusivity provided by the first mover advantage is more than enough to motivate software R&D without any patent protection” (8).

In return, I consider the European approach more relevant in the fast moving world of Software. Indeed, it sound more reasonable that only new technical processes should be allowed to be patented. In this case, I consider then that a period of time of 10 years would be enough to reward the inventor.

Last but not least, I consider the idea that each country has its own software legislation totally obsolete. Informatics is a world without boundaries. Software patents and piracy litigations should be managed by an international organization by setting standardized patents laws for all countries and the requiring dispositions to punish infringer and ensure that they are well respected in each country. It is obvious that software patents would not apply only for one specific country anymore but globally. It might sound utopist but it would be more profitable for software developers at the end than having 10 additional years for their patents and then reward their innovative invention. To have an overview of the software piracy problematic in the world, $62,7 billion of dollar represents the total amount of unlicensed software in the world in 2013 (9) . Now concerning the international patent software legislation, it would allow to avoid some surprising situations for companies willing to launch their products in a new country. For example, a Chinese company producing copies of Iphone, GooPhone, threatened Apple to sue them if they launched the Iphone 5 on the Chinese market because they patent the Iphone5 design before Apple thanks to leaked pictures (10) . Even if the previous example is not directly related to software, it can totally apply to software code which is even simpler to copy or to reproduce.

Sources:

(1) – http://theconversation.com/give-existing-reforms-a-chance-to-kill-patent-trolls-44499
(2) – http://spectrum.ieee.org/podcast/at-work/innovation/a-case-called-alice-software-patents-and-the-us-supreme-court
(3) – http://spectrum.ieee.org/podcast/at-work/innovation/a-case-called-alice-software-patents-and-the-us-supreme-court
(4) – http://venturebeat.com/2010/03/04/in-favor-of-software-patents/
(5) – http://www.forbes.com/sites/ericgoldman/2012/11/28/the-problems-with-software-patents/
(6) – https://en.wikipedia.org/wiki/Network_effect
(7) – http://www.forbes.com/sites/ericgoldman/2012/11/28/the-problems-with-software-patents/
(8) – http://www.forbes.com/sites/ericgoldman/2012/11/28/the-problems-with-software-patents/
(9) – http://www.vilabs.com/resource-section/stat-watch
(10) – http://www.ipwatchdog.com/2013/04/04/chinas-great-leap-forward-in-patents/id=38625/

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Valentin Herinckx
Software patent is a very controversial matter, there’s no doubt about that. In my opinion, there’s 3 issues in the current system that the legislator needs to tackle in order to create a safer and healthier competition: when should a software patent be granted, which protection should this patent receive and should the legislation be the same all over the…
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Software patent is a very controversial matter, there’s no doubt about that.
In my opinion, there’s 3 issues in the current system that the legislator needs to tackle in order to create a safer and healthier competition: when should a software patent be granted, which protection should this patent receive and should the legislation be the same all over the world?

1. When should a patent be granted for softwares? The problem with software patent is that it usually protects a concept more than an actual creation. Therefore the legislator must be very careful when granting a patent for softwares, because he could give a too broad protection and it could allow the innovator to sue a lot of people because of that protection.
Because of my limited knowledge on the subject, I can’t really give any advice on that matter, but I think the legislator should spend time on each case to make sure the protection granted is not too broad.

2. Then comes a different problem if a country decides to grant patent software: how long and how broad should that patent be? This is definitevely a tricky question: should the legislator choose to protect the software very hard and for a long time or should he offer a short and soft protection? In my view, the good choice lies in between. Because the software industry is such a fast changing environment, granting a long-term patent would surely be counter-productive, and could slow down an important industry in our more and more tertiary economy. On the other hand, I think that software patents should be well protected, and broad enough to guaranty the protection of true innovation.
But then again, my knowledge is quite limited on that subject and I’m not fool enough to think that the solution is that easy.

3. The question of allowing software to be patented is surely controversial, but I think no one would argue that the legislation on that matter should be harmonized across the world. Having a much stronger legislation in Europe undeniably creates a competitive disadvantage with the USA, which certainly leads to a brain drain from our brightest minds. Knowing that a patent in the US can protect their software surely encourages them to develop their software over there rather than here where their competitors could steal it. An agreement between the US and Europe on that matter would probably be profitable for us, and that could happen soon because of the negotiation for the much-debated TTIP.

Allowing softwares to be patented is definitevely a difficult question, and there’s probably not a finite solution for it. But I think that the system would already be better if it was harmonized across the globe, and before doing anything, legislators around the world should first decide to do it all together.

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Gwenael Bailly
Before digging further in the matter of length and/or breadth of patterns, I think it is relevant to talk about harmonization of the norms. Indeed, it seems strange today that, with all the commercial, financial and legal agreements between the USA and Europe we still have different politics about such an important thing as patterns. In a context of globalization and…
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Before digging further in the matter of length and/or breadth of patterns, I think it is relevant to talk about harmonization of the norms.
Indeed, it seems strange today that, with all the commercial, financial and legal agreements between the USA and Europe we still have different politics about such an important thing as patterns.
In a context of globalization and extreme competition with the emerging markets, we need to adjust the EPO policy if we want to be able to stay competitive. Undoubtedly, how could we in Europe – as an economy of knowledge – still face giants (India, China,…) if we are so restrictive with the core of our economy, knowledge ? We need to give companies incentives in software development.
On the other hand, USPTO has gone too far with the freedom of patenting software. Indeed, companies are now spending huge amount of money in law instead of in R&D.
Thus, we need to reach an agreement with the USA so we can both face emerging market and eventually find more logical norms.

Regarding the length matter now, I think it would not be a good idea to change the duration of the patterns. My argument here is simply the fact that if we do so, companies will have either to increase the cost of their software; either they won’t have enough incentives to develop it. So, in both cases we face a loss of welfare.
Concerning the breadth, I think USPTO is not tough enough. Indeed, this policy has clear weaknesses, the biggest being the one we talked about earlier: lawsuits. So here, policy needs to be reviewed to allow companies creating their products without fearing to be suit because they used a technology the never heard about. The “functional claiming” should therefore be banished of USPTO policy because it leads to too much confusion, and the fact that inventor has to build his idea, not just to think about it, to be patented could also be a good incentive to invest in R&D.

To conclude, USPTO and EPO should harmonize their policy to be more consistent and competitive. The length of the USPTO is, according to me, a good thing but its breadth is not.
So, EU and USA both have good ideas in their policy and share them could not be bad economically speaking.

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Maxime Verheggen
The aim of a patent is a recognition of an innovation and a guarantee for its owner against an unwilling replication. So in this concept, patent is a greatfull tool and provides a certain security. It is usefull to protect a business and It is convertible into cash. As far as this description, i agree with…
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The aim of a patent is a recognition of an innovation and a guarantee for its owner against an unwilling replication. So in this concept, patent is a greatfull tool and provides a certain security. It is usefull to protect a business and It is convertible into cash. As far as this description, i agree with the concept of patent.

However, this lets place to some downward spiral as the software. It is problematic when the protection is about the functional claiming and not about a way to achieve this function. Indeed patent allowing a « function claiming » is a barrier to innovatio. There is no sense to limit the progress.

Moreover this creates some monopoly and breaks the perfect competition which means a loss for the consument. That reveals in higher prices and less choices. This way of thinking is contrary to the concumer’s protection UE policy. It seems essential to adjust the breadth of patents.

Concerning the length, It’s more difficult to establish a common rule. Because it depends on the domain of the software. Some software don’t need an excessive time of protection and some well. So It will be more efficient to grant a the patent’s length in function of the kind of software.

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Simon Verhaeghe
Through this article and my researches, I can see that the patents registration created active debates around the world for many years and an agreement form different stakeholders will not be find soon. I could see in a lot of articles and for most of experts that patents play an important role in the innovation and creation of a firm, in…
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Through this article and my researches, I can see that the patents registration created active debates around the world for many years and an agreement form different stakeholders will not be find soon.

I could see in a lot of articles and for most of experts that patents play an important role in the innovation and creation of a firm, in a bad or good way. In my opinion there are three most important things to change in patent legislation to obtain a positive impact on the companies:
First of all, when we hear about patent it’s immediately a specific legislation. National, International, EU, US… There is so many “patentability” with different rules and different protections that we can ask us the question why there no exist a worldwide patent when the globalization is everywhere? The question of the utility a unique national patent when there are an international patent legally more important make me perplex… But I will not argue about this.

The lack of homogeneity will bring us to another issue: the software patents. In my mind, European legislation is more favorable to see his market grow up. As we will see in the next point, the opportunity to obtain a patent means also the opportunity to obtain a monopoly position for the software patentable (in the sense of a right to exclude competitors). In US legislation, giving this patents with no technical specifications like hardware patent. A lot of people can abuse of this monopoly position and block the market with their patents! The market will diverge so far of his equilibrium.

At the end, I believe that the most important regulation should be about the world war patent. Why war? Because I believe that we are so far to the first patent objective: provide incentives for innovation and justify spending fortunes on new products. Now, the principal utility of patent is to prevent company sued by a patentee for patent infringement. “His attitude was that if someone at Apple can dream it up, then we should apply for a patent, because even if we never build it, it’s a defensive tool,” said Nancy R. Heinen, Apple’s general counsel until 2006. The biggest losers in this war are little companies sued for violating patents they never knew existed. It can goes from the catalog of IKEA to the programming algorithm of Facebook! Often, companies are sued for violating patents they never knew existed or never dreamed might apply to their creations, at a cost shouldered by consumers in the form of higher prices and fewer choices.

I think patents have to exist, but we should reduce their scope and be more selective for each delivery of patent. I believe that inventors have to be rewarded for their work and researches. Some market like pharmaceuticals or hardware deserve to obtain exclusive commercial rights to use the invention or utilizing the invention to obtain an incentive to follow the investments in R&D. The balance should be rebalances to give patent adapted for each product.

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Ritej Bachhawat
No doubt, software patents’ debate is a ripe topic, but before we dwell into what is right and acceptable to ALL, we need to understand what drove the different views across the world. Both the US and EU have expressed contrasting opinions on how to treat software patents and the reason for differing dynamics is the difference in the scale…
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No doubt, software patents’ debate is a ripe topic, but before we dwell into what is right and acceptable to ALL, we need to understand what drove the different views across the world. Both the US and EU have expressed contrasting opinions on how to treat software patents and the reason for differing dynamics is the difference in the scale of the software industry in these parts of the world. If we look at the top 10 major software giants, we observe 8 of those 10 to be from the US. These companies drive the economy as no one else does and being liberal in granting patents was in some ways feeding their egos and encouraging them to invest, grow and expand further. On the other hand, the EU has been more of an unbiased moderator and is driven by opinions of delegation of multiple countries. This is why a company like SAP in Germany cannot dictate the rules (indirectly) to the entire EU.

Now coming to what is more logical, I believe the EU approach is more appropriate in handling the software patents. The reasons are obvious – 1) Promotes more opportunities to innovate in terms of process/algo, 2) Promotes entrepreneurs, 3) Reduces the legal burden and unnecessary examination costs (and hence benefits consumers), and most importantly, 4) continues to protect the implementation which is technically progressive.
This is something that the US has also slowly started to accept. The latest Supreme Court ruling on software patents in July 2014 (Alice Corp v CLS Bank International) denied rights to patent-eligibility on grounds that applying a software process to an abstract idea does not simply cut it.

Now looking at the interesting concept of length and breadth:- ‘Patent breadth’ is something that defines a patent’s scope and will bring more transparency in the industry of patent trolls. ‘Patent length’ on the other hand is an important lever for growth and innovation – It should be adjusted based on the applicability and the level/grade of innovation (“depth”) by studying the patents on a case to case basis.

Now for a moment, let’s look beyond patents and take a step back – Won’t software innovations be better protected through copyrights? “Copyrights allow the abstract ideas behind a software problem to be created by anyone, but protect an implementation of those ideas in concrete form, so developers who implement their own ideas do not have to worry that someone will put them out of business”(2) – something that is desired. Also, copyrights are straightforward to enforce and allow easy identification of what is being protected – Can’t we move beyond the software patent debate from looking at this option?

References:-
1. http://en.swpat.org/wiki/Alice_v._CLS_Bank_(2012,_USA)
2. http://oneminute.rationalmind.net/software-patents/
3.http://archive.fortune.com/magazines/fortune/fortune_archive/2007/05/28/100033867/index.htm?section=money_latest

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Ricardo Amado Carvalho
One of the main problems when discussing software patents (and I would argue that most patents in general) is that we don't make enough of a connection between the original goal and the current results. When patents were first introduced, the goal was to lead people to create new things, under the proposition that their invested time would lead to…
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One of the main problems when discussing software patents (and I would argue that most patents in general) is that we don’t make enough of a connection between the original goal and the current results. When patents were first introduced, the goal was to lead people to create new things, under the proposition that their invested time would lead to good rewards to reap in the future. However, we often see cases, where (particularly small) inventors are constrained by constant litigation related to patents. So, are patents a good or a bad thing? A lot of people want to simply abolish them, while others claim that the current state of intelectual property is good just the way it is.

However, the problem with patents is just how broad their application can be. A problem that is relevant now more than ever, since when they were created, nobody would anticipate patent trolls, or even how long apparently reasonable suits would take (wasting years in court arguing dubious patents was surely not the initial goal).

This way, and while it might not seem like a straightforward solution, I think there needs to be a comprehensive reform in the way patents are processed, instead of going for an extreme position like abolishing patents altogether or keeping them the way they are (in my opinion, with the current inefficiencies, keeping the current system is and extreme position).

While it may not seem original, I think it would be beneficial to go back to a principle of “first to invent”. This way, besides having an idea about how something could work, you should be required to actually present the practical application of it. This means that if you have an idea, you’re required to actually display it in a prototype stage. I think that it would be somewhat unfair if, for example, I was able to patent an algorithm that would take all your information, and automate your whole electronic life, and then 5 years from now, the poor guy that actually had the genius to design such a thing would be accused by my patent when I would have no idea of how such a thing could work when I filed (idea vs execution).

Hence, the biggest point that I am trying to make is that if you are trying to file for a patent, you should have a prototype. Would it be fair for 100% of the situations? Absolutely not, but I truly believe that it would solve a lot of the problems that we incur with patents today. Preemptive patents wouldn’t be such a problem, since you would not only have to account for the legal costs (sometimes tiny for certain companies), but also the R&D necessary to develop such ideas. It could also get rid of patent trolls, since it would basically prevent any company from filing patents that wouldn’t incur in R&D costs, leaving the strategy of “develop nothing, patent everything, go to court and settle” ripped to shreds.

Since these are 2 of the biggest problem with modern patents, I think that it is essential to limit the amount of patents being issued, and the prototype requirement is my humble suggestion at achieving just this.

Concerning the duration aspect, it is clear that 20 years is absolutely no adapted to the modern pace of innovation. For example, the original iPhone has been launched in 2007, with Steve Jobs famously saying (about the Multi-Touch interface) “and boy, have we patented it!” ( https://www.youtube.com/watch?v=A1gISYqsApI#t=190 ). In just 5 years, we saw the demise of the 2 biggest players at the time (Nokia and Blackberry), rise and fall of Palm, and the meteoric ascension of both iPhone and Android. If you want a sense of how much it takes to fundamentally change an industry in electronics, 5 years shouldn’t be too off the mark. Therefore, the period can never be superior to 5 years, in my opinion.

However, the multi-touch patents can even become dangerous, since all modern devices with a touchscreen rely on it. Therefore, besides the scope of patents and duration, it is also necessary to think about breaking down into rules just how other companies may have access to these patents (possibly by building up on the concept of standards-essential patents, and the obligation of the companies to share their patents for a reasonable price).

Related Patents:
https://www.google.com/patents/US7479949?dq=multi+touch&hl=pt-PT&sa=X&ei=21E0VL6ZMYHfaJ_XgpgN&ved=0CEkQ6AEwBQ

https://www.google.com/patents/US7840912?dq=multi+touch&hl=pt-PT&sa=X&ei=21E0VL6ZMYHfaJ_XgpgN&ved=0CFIQ6AEwBg

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Ankit Khandelwal
Patents are a means to protect the innovation carried out by an individual or a company. It helps protecting the original idea or thought or the process meant for developing something which is not obvious and is genuine. It also gives the innovator a sense of protection that his innovation won't be copied and he has enough incentive for innovation.…
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Patents are a means to protect the innovation carried out by an individual or a company. It helps protecting the original idea or thought or the process meant for developing something which is not obvious and is genuine. It also gives the innovator a sense of protection that his innovation won’t be copied and he has enough incentive for innovation. The patented innovation is restricted for commercial uses ad the innovator has the sole rights.

Patents can be classified into product and process innovation patents. Generally software patents would be a subset of process innovation. In case of software, the investment may sometimes run into millions of dollars and few years of development time. To protect the time and effort put, softwares can be patented. The question that arises here is what should be the guideline for providing such and the time horizon for the protection.

To remove vague descriptions, the guidelines should clearly describe the rules for granting a patent. The patent should be on a software which helps solve a problem via a descriptive process. I completely agree with Richard Posner’s view that software patents should have a smaller time horizon. Software, unlike drugs, have an impact on a large chunk of population. With faster churn rate in thetechnology sector where things change frequently, patent regime for a long term would hinder or restrict spread of knowledge. Here we can bring our knowledge of marginal benefit and cost. The marginal benefit for the innovator should be just equal to the marginal cost so that there are agents in the economy who can innovate. Obviously, a cost benefit analysis should also be considered keeping the society in mind. Having a longer patent regime would cost the society a large deal as it would be deprived of the new technology.

So there has to be a balance between the interests of the innovator and society. We have seen the Apple vs. Samsung war on patents. Whenever there is ambiguity, there would be conflicts. Additionally, the software world saw the rise of Open Source Software where some of the finest ones were developed by people all throughout the world. Linux as the Open Source operating system, Mozilla as free web browser, Scilab as a substitute to Matlab are few examples which illustrate that the world can do great things collectively.

The question that remains is how to motivate like minded people to bring together to eliminate patents. Till then the patent regime would continue. For the better good of society, the regime length should be less than 5 years

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Laurence Busseniers
First of all, let’s consider the aim of a patent. The objective of the system of patent is to protect intellectual property in order to stimulate people to innovate. The current situations exposed in this article seems to reflect that the debate is not concentrate on the true problem. As we read above, the patent for software do not…
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First of all, let’s consider the aim of a patent. The objective of the system of patent is to protect intellectual property in order to stimulate people to innovate. The current situations exposed in this article seems to reflect that the debate is not concentrate on the true problem. As we read above, the patent for software do not concern a process but applies to protect a goal. This mechanism extend widely the scope of a patent and prevent other innovator to research on matter without trouble. Indeed, innovators are restricted by the fear to overfill (= déborder!) on the fields of other patents and thus to be sue.

Then, let’s consider the length of a patent. Patent’s holder and other pro’s institution always try to extend the length of patent. But in a welfare point of view : a market, (je comprends pas: tu veux dire: from a social point of vieuw? pourquoi deux points? to be fair and efficient, should be competitive.

To conclude, it’s important in my opinion to reduce the lenght of patent but also reduce the number of patents as well in the software industry as in other industries. Laws don’t reflect solutions which are needed in this field. To be efficient, the patent system should be rethink in order to maximize welfare of the society and not to maximize money patent’s holder put into their pockets.

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Charlotte Moreau
In the first place, it is important to define exactly what a software patent is. “A software patent is a patent that is provided to enhance computer performance by means of a computer application.” (1) It is a current matter as the technology is constantly growing and has become a key sector. Regarding the fact that patent are ruled by…
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In the first place, it is important to define exactly what a software patent is. “A software patent is a patent that is provided to enhance computer performance by means of a computer application.” (1) It is a current matter as the technology is constantly growing and has become a key sector.

Regarding the fact that patent are ruled by country, I do not agree with it especially in our present society. Companies are often based in several continents and it would be difficult for them to use a patent in their American headquarters but not in the ones in Europe. As consequence, that would probably pose them a problem if they are not allowed to use the same processes in Europe and in America.

Furthermore, the lengths of patents are also questionable. Seen that we live in a world that progresses really fast, patents’ duration should not be too long. I agree with the statement of the Electronic Frontier Foundation that says that a patent should last a term of five years.
Although we can put a limit to the length of a patent, it is harder to set limits to a patent’s breadth. The United States have a different vision than Europe concerning this subject. They have a way broader way to define patents. They do not necessarily have to refer to process but they can refer to concepts also.

On the contrary, it is more restricted in Europe and I am a partisan of that vision. In this case, software patents represent innovations in a technical process only. It avoids the multiplication of patents about innovation business processes and the risk to go over the same object. Nevertheless, the business processes are very useful; it should be under more rules so that it is not so easy to get a patent on a simple idea. Software patents should only cover a particular way to achieve a goal but not the goal itself.

In conclusion, I think that we should go towards a globalization of the software patents’ world so that it becomes easier for multinationals present on different continent. Because softwares are in continuous evolution, the patent’s length should not be too long and its breadth too large.

(1) Techopedia, Online http://www.techopedia.com/definition/22199/software-patent, consulted on 7/10/2014

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Aditya Dogra
Prior to reading the article, my impression about existence of patents was that it is a tool to guard the innovator's interests who has invested significant resources in developing something novel. The complete idea of granting software patents in a functional manner is promoting a gross misuse of this tool. Providing patents in a functional manner would slow down and…
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Prior to reading the article, my impression about existence of patents was that it is a tool to guard the innovator’s interests who has invested significant resources in developing something novel. The complete idea of granting software patents in a functional manner is promoting a gross misuse of this tool. Providing patents in a functional manner would slow down and disincentivize innovation by precluding other innovators from coming up with methods which could be more efficient in achieving the same goal. These would also go some way in promoting monopolistic behavior by holders of the patents. A better way would be to perhaps grant patents as done in pharmaceutical industry where the patents are granted on processes. This would require a drastic overhaul of the entire process of granting patents where in a more thorough and holistic review of all the patent applications would be required before clearing them.

Regarding the length of the software patents however, I would consider it appropriate to have a shorter lifespan of around 5 years granted to patents as technologies in these fields are evolving rapidly and it accordingly it is essential for older technologies to make way for the newer ones. The exact duration can however be varied from a case to case basis depending on upfront investment that is involved.

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Federico Perciaccante
I'm certainly not an expert in the area, but reading the article and getting informed on the issue opened my eyes on a world that I barely knew was suffering from such a problem. As a starting point, I would like to quickly summarize what are the main problems that occur in the software patenting field. As exhaustively pointed out by…
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I’m certainly not an expert in the area, but reading the article and getting informed on the issue opened my eyes on a world that I barely knew was suffering from such a problem.

As a starting point, I would like to quickly summarize what are the main problems that occur in the software patenting field. As exhaustively pointed out by numerous authors, we can notice that the current patenting model -even the EU one, which is way stricter than USPTO- doesn’t fit the software field; here are some of the main reason. In a first group we find the structural problems, the ones that relates with the quite big amount of differences that can be noticed between a classical patent subject -i.e. a particular pharmaceutical formula- and a software: software is, basically, often too hard to describe precisely, and therefore gets patented at an high level of abstraction, which leads to a nearly-impossible work for the patent office when it comes to find out if the idea that has to be patented satisfies the requirment. The overclaiming, for example, should produce patents rejections on various stages, but it often doesn’t, due to the complexity of the work that should be done. Not to menction the fact that software’s life is usually shorter than the time required to patent it.

A second ideal group can be formed by the issues that makes software patenting uneconomical. We all know that -and this is particularly true in certain fields, like smartphone industry- firms are now “investing” huge amounts of money on patent portfolios just in order to avoid them to fall in the competitors hand. Furthermore, there are some facts that show how software patenting could be avoided: opensource software is the most impressing example, but it’s not the only one. As Eric Goldman (http://www.forbes.com/sites/ericgoldman/2012/11/28/the-problems-with-software-patents/) points out, the mix of copyright -multiple aspects of software can qualify for copyright protection- and trade secrets could provide an acceptable defense, and thus a sufficent incentive to produce. Also, we must never forget that we’re talking of an untraditional kind of industry, one of the peculiarity being the incredibly high “first mover advantage”. If we consider the average software-related product lifecycle, it’s easy to find out how dominant is the position of the first seller.

That said, I think it’s hard not to agree with the ones that claim new forms of regulations for software patenting. I really don’t think that a situation in which, for example, “defendant’s costs to find the patentee’s version of the invention beforehand are greater than the defendant’s costs to invent it on his own” (https://www.usv.com/posts/we-need-an-independent-invention-defense-to-minimize-the-damage-of-aggressive-patent-trolls) can be considered sustainable. Still, as experience taught us, merely delegate the solution of this kind of problems to the politicians alone could represent a risk: in the worst cases complications increase, in the more likely one solutions are late and incomplete. My opinion is that, in most of the cases, the market itself represent an adequate incentive for firms to invest in R&D, and that in such cases patents are more of a limit than something else -a limit that also have the downside of favouring the biggest over the others.

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Thomas Busschot
In my opinion, software patent should be granted in a very different way than other types of patent. I would recommend to reduce both its length and its breadth. Let me explain my point : The main argument for patent is that it provides necessary incentives to industries to innovate. Though I'm not convinced that, in the software case, firms would…
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In my opinion, software patent should be granted in a very different way than other types of patent. I would recommend to reduce both its length and its breadth. Let me explain my point :

The main argument for patent is that it provides necessary incentives to industries to innovate. Though I’m not convinced that, in the software case, firms would stop to develop softwares if they can’t patent it, let’s admit we need this legal protection for firms and individuals to be innovative.

From this point, autorities should not grant too “large” patents. Indeed, the USPTO procedure, as depicted in the article, gives to some people a very powerful leverage to file a lawsuit against their competitors. It’s a shame, both on the knowledge level (because it prevents other to contribute and to improve the software) and the economic level (we all know that monopoly-like markets aren’t efficient). That’s why they should reduce the breadth of their patent and to harmonize with the EPO criteria. Besides, more harmony in IP laws would really help firms in the context of the globalization.

Furthermore, I think that 20-years patent are far too long for a field like software … it almost sounds like a joke. If we think of the technology of 10 years ago, it has been consequently improved and changed. Software developement is a very competitive field which evolves really fast. 20 years is an eternity in this market. In my opinion, Lemey’s proposition of 5 years should already be long enough for such a patent ! The advantage of a so short model would be to accelerate the sharing of the technical progress. Therefore, once the protection period is over, one would be free to use those informations and ideas to innovate on his own side.

If we consider short and narrow patent, we might just get the benefits of this system without too much of its downsides. We should not forget that knowledge is even more efficiently “produced” when it’s shared.

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Arpit Agal
According to me, EU approach to software patent seems to be better due to its specificity. Given the rate at which technology is changing, it is highly likely that we will see many different approaches being invented to a common problem. US approach will restrict going for new and innovative approach since old ones would already be patented while EU…
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According to me, EU approach to software patent seems to be better due to its specificity. Given the rate at which technology is changing, it is highly likely that we will see many different approaches being invented to a common problem. US approach will restrict going for new and innovative approach since old ones would already be patented while EU approach will incentivize companies for investing in new approaches since every approach can be patented individually. One example in front of us is the smart phone operating systems. The technology for that has seen rapid changes and now has reached its maturity stage. Companies will only invest in this area when they are assured that their innovation can be patented and that where I feel, defining the breadth of a patent will help.
For breadth of a patent, it is very necessary to patent an approach not the problem which is solved by software. It may become subjective at times, and hence require neutral authorities to define the limits. Also, having a universal body across countries to take care of patent issues will ensure that same practices are followed in every country which will, in turn, help MNCs.
Regarding the length of a patent, a common number can’t be applied to every area. Every software development requires different level of effort and investment and hence, need different patent length. For low effort areas, patents can be of 2-4 years of length while high effort patent may require longer patent lengths like 10 years. Again, it can be subjective and may vary over time.

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Achille Klein
As we can see, the patent’s debate is very important in the innovation process. Indeed, the patentability drives people to innovate more and more because there are conscious that if they find a new technology, product or service; they could be protected from the others who want to copy them, and they will be able to work without any fear.…
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As we can see, the patent’s debate is very important in the innovation process. Indeed, the patentability drives people to innovate more and more because there are conscious that if they find a new technology, product or service; they could be protected from the others who want to copy them, and they will be able to work without any fear.

A first problem is regulations; they are not the same in European Union and in United States. One the one hand; in EU, patents who are not a new technical process won’t be granted. On the other hand; in US, all patents are granted even if it’s not a technological breakthrough.
For me, the first thing to do before thinking about the length and the breadth of these patents is to launch a new and single regulation for these one all around the world.

What about the length; first, I think it could be quite short because technologies always evolve. Suppose a long period of patent term (20 years for example), it won’t be allow people to think about new technologies based on the previous one and it will be killed the entrepreneurship. But, it mustn’t be too short because if we imagine a length of 1 year, innovators won’t spend so much money to have the monopole only for 1 year and it will also kill entrepreneurship. So, a balance between a short and a long period of patent term is the best solution, the period of 5 years is, for me, as for the moment, perfect.

What about the breadth now; we could only granted patent which are a new technical contribution to the level of existing technology (as regulated for the moment in European Union). I think it’s not conceivable not to accept patents who have the same goal than another one but with a different way with different technologies to launch this goal. Someone who creates or builds a new technology must be rewarded by the opportunity of taking a patent.

To conclude; at my point of view, there are lower and lower entrepreneurs all around the world, authorities have to do their best to push them to dare launching themselves. First, they have to create one single regulation for everybody; twice, they have to grant only new technical breakthrough for a period of 5 years.

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Hélène Linsmeau
After the reading of the article and of my researches, the European Patent Office’s approach seems, in my opinion, to be more logic and to work better. More logic, why? For the European Patent Office, to be patentable a technology needs to be novel, inventive, susceptible of industrial application and obviously innovative. When we apply this four requirements to a software, it…
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After the reading of the article and of my researches, the European Patent Office’s approach seems, in my opinion, to be more logic and to work better.

More logic, why?

For the European Patent Office, to be patentable a technology needs to be novel, inventive, susceptible of industrial application and obviously innovative.
When we apply this four requirements to a software, it respects the three firsts. Software can be new, it can be inventive if it require some creativity to do and if it’s not a simple evolution of an older one and it can have an utility for industries.
But is it really innovative? is a software not just a piece of paper writes in a mathematical language like a literary work done by an author?
I agree with the European Patent Office’ point of view which is to not consider the final “product” as innovative because it uses conventional technology.
But, I think that software needs protection to not be claim as the invention if someone who is not the true inventor. In my point of view, a copyright is a good alternative because it provides some protection but can be use by someone else too. Thank to this possibility to use it, some others and smaller companies can do research with the software and perhaps find a true invention really relevant.

Working better?

There is two main reasons why I believe that the American and Japan’ system is less effective.
Firstly, as Mark Lemley claims, I agree that there is a patent thickets. For instance, the number of patent filed in the US and in China is respectively around 48 600 and 38 900 (footnote n°1) while Germany, the “higher” European country, faces only 18 600 requests for patents.
Secondly, the number of defendants in patent lawsuits is majority from software patent. For example, this number was just above 6 000 (footnote n°2) in 2011 which causes a higher cost of patent litigation . Moreover, the number of software patent’s lawsuits never stopped to increase since 2007 and so it will certainly continue to go up in the following years.

In conclusion, I believe that with the European approach which limits patent to an innovator solution to a problem and not to a “strict and finished” software is better than the US’s regulation. But, the perfect solution does not exist because the IT environment is complex. Moreover, this environment is also changing so rapidly that we need all-time to reconsider Software patents.

References:
[1]http://www.vox.com/2014/7/7/5862284/9-charts-that-show-patents-are-bad-for-the-software-industry
[2]http://www.lemonde.fr/europe/article/2005/07/06/le-parlement-europeen-a-enterre-la-directive-sur-le-brevet-des-logiciels_669825_3214.html
[3]http://www.sciencepresse.qc.ca/blogue/2010/06/28/brevet-logiciel-fait-vagues
[4]http://www.iusmentis.com/patents/uspto-epodiff/
[5]http://www.wipo.int/ipstats/en/statistics/patents/

Footnotes:
1) WIPO (Worldwide Intellectual Property Organization)’ statistics: http://www.wipo.int/portal/en/
2) http://www.vox.com/2014/7/7/5862284/9-charts-that-show-patents-are-bad-for-the-software-industry

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Christophe Gérard
The software patent debate is a debate which is active for years. I will not take sides on this debate but I will say what seems positive and negative. First of all, the main idea in favor of the software patent is the return on investment. Without patents, it’s sometimes difficult to invest fortunes on new products because you’re afraid about…
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The software patent debate is a debate which is active for years. I will not take sides on this debate but I will say what seems positive and negative.

First of all, the main idea in favor of the software patent is the return on investment. Without patents, it’s sometimes difficult to invest fortunes on new products because you’re afraid about losing money. And if the society wants to progess in knowledge, we have to innovate and invest in R&D.

On the other side, patent software could slow down other companies to develop new technology (too complex). The problem is the increasing difficulty of innovation which also prevents « little companies » to enter the software industry (because of patent thickets).

Finally, I think the best solution is a patent duration which depends on the initial investment (most investment is large, most duration will be long) but doesn’t exceed a number of years. I think companies will be less afraid to invest in innovation with this decision. Moreover, it would be easier for small companies to enter the market with a decrease of patents length.

Source : http://en.wikipedia.org/wiki/Software_patent_debate

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Laurence Balis
I think patents have to exist, there is no doubt about this. Inventors need to have some rewards for their research and they deserve some advantages such as having exclusive commercial rights to use the invention or utilizing the invention for his/her own purpose. That seems normal but the regulations about approving patents are too broad. First of all, I think…
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I think patents have to exist, there is no doubt about this. Inventors need to have some rewards for their research and they deserve some advantages such as having exclusive commercial rights to use the invention or utilizing the invention for his/her own purpose. That seems normal but the regulations about approving patents are too broad.

First of all, I think that there should be a global regulation for all countries. It would simplify the aggregation of patents and patent holders would know exactly what they can do with their patent. It’s not logical that in the US you don’t need a technical inventive creation to receive a patent whereas in European Union it is mandatory.

Secondly, the patent office has to tighten its rules. Inventors deserve patents when they come up with a bright idea that is inventive and new. But they can’t have rights on other unrelated products built by others because their patent was to broadly described. The problem is that it doesn’t only affect the companies but also the consumers.

A third problem with the approval of patents is the leniency of the patent office. They approve patents without seeking further explanation of how the new product works, based on what calculations and how these calculations were found. Certainly these inventions deserve recognition but don’t we have to look more closely before granting a patent?

In conclusion, for me, the length of the patent is not the biggest issue unlike the breadth. A stricter regulation should be implemented worldwide with very specific rules concerning the length and breadth of the patent.

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Karla Rivera
In my opinion the software industry is truly dynamic. This industry has special characteristics compared with others, because it is easy to develop ideas in order to produce new "software" with relatively low resources. For this reason, we find low entry barriers to the software market. Here patent legislation plays an important role. These rules are necessary to promote…
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In my opinion the software industry is truly dynamic. This industry has special characteristics compared with others, because it is easy to develop ideas in order to produce new “software” with relatively low resources. For this reason, we find low entry barriers to the software market. Here patent legislation plays an important role. These rules are necessary to promote innovation and to provide protection to intellectual properties. So, Is it necessary to introduce imperfections (patents) in a dynamic market with low entry barriers?

The low entry barrier ensures a strong competition among innovators. This could be the main reason for the high development in the software industry. On the other hand, the patents ensure the software codes cannot be used directly by others. According to the Foundation for a Free Information Infrastructure (FFII) software patent is a “patent on any performance of a computer realized by means of a computer program”, nevertheless each country has different legal definition on patents of invention involving software (As US and EU).

The patents have the aim to promote innovation and protect the creator. Thanks to the patents, creators feel safe due to temporary monopoly to use and get revenues of their creations. The patent rules give advantages to prevent that other developers copy the codes to produce similar “applications”. This can ensure a share of the market for the patent holder.

However, there is a trade-off between the free market of software and the patents, because although patents can create incentives to develop this industry even more, these same patents could create monopolistic behaviors and the well known problems in terms of social welfare that are studied extensively in classical microeconomic theory.

The EU and the USA clearly represent to extreme cases, both in terms of innovation definition and length of protection. Regarding the first, it is crucial to provide legal security on what we mean by innovation. The American framework seems too open to interpretation and leaves room for abuse in the use of patents. In other words, firms may be able to lock small ideas and creations from the scope of other players.

Finally, patent length may provide massive monopoly power in USA while, in some cases, the EU framework is too minimalistic –at the end, the EU may fail in providing security for software developers. It may be useful to provide, instead, increasing patent length depending on the “degree” of innovation. Indeed, the term “degree of innovation” is ambiguous but I believe it would be economically efficient to have several patent length based on benchmarks or a set of indicators accounting for innovation.

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João Costa
Generically, patents appeared as a reward from an investment made by a inventor/company in the creation of a new idea/technology. By restricting the use of this new knowledge to the patent owner, for a certain time, we’re giving a way to justify the investment (and the risk incurred) either by exploring or selling the respective technology. If the concept itself appears…
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Generically, patents appeared as a reward from an investment made by a inventor/company in the creation of a new idea/technology. By restricting the use of this new knowledge to the patent owner, for a certain time, we’re giving a way to justify the investment (and the risk incurred) either by exploring or selling the respective technology.

If the concept itself appears to be very logical and a global accepted solution to the appropriability problem of knowledge, it’s appliance to the real world is not even close to be harmonic. The two main patent offices USPTO (US) and EPO (EU) have different – opposite wouldn’t sound wrong too- ways to operate.
USPTO accepts very broad patent descriptions, sometimes only regarding a specific function or design, and leaving further complains to the courts. A known example is the patent USD504889, owned by Apple Computer, Inc, which only claims “We claim the ornamental design for an electronic device, substantially shown and described”. The drawings and descriptions define a rectangular and thin electronic device, which fits not only in IPad, but also in almost all tablets.
In the opposite, EPO only grants patents describing technical advancements to the actual level of knowledge, leaving beside other types of contributions, as explained previously in the article. A patent was not granted by EPO to a software for internet auction because “… it made no inventive technical contribution to the level of existing technology”. Although it was a improvement of business processes.

Personally, I am more inclined to this second stricter view of patenting. In a world where information flows faster and faster (reducing development costs) and the velocity of software improvements increase exponentially, I think that in this specific case, market offers enough attractiveness for constant investments in development. It’s true this will lead to a greater instability; an example was the recent electronic game, Flappy Bird, that in a year became a global success, generating 50,000$ a day, and disappeared. The possibility of reaching worldwide makes the software market attractive but to sustain long-term market share a constant investment developing and marketing is required. The same idea applies to academic and professional software. My opinion is that a software brand should differentiate itself by its quality over time instead of looking for a patent to claim rights over wide usages or goals. If granted, this patent could also prevent the introduction of a better/more efficient software that solves similar problems.

In conclusion, regarding software patenting, my vision is closer to the European Patent Office (EPO) standards, which lead to a more open and competitive market (at least outside the courts). Without risking any predictions, I think that the acceleration of the IT will lead to a more specific and specially shorter patenting, in terms of breadth and length respectively.

References:
https://www.google.com/patents/USD504889

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Chloé Jacquemin
Before giving my opinion on the optimal design patent in term of length and breadth in software patent system, I would just like to recall the goal of IP laws. These ones aim to give incentives to innovate and provide protections from competitors. IP laws have to find a compromise between incentives to innovate and the use of the innovation,…
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Before giving my opinion on the optimal design patent in term of length and breadth in software patent system, I would just like to recall the goal of IP laws. These ones aim to give incentives to innovate and provide protections from competitors. IP laws have to find a compromise between incentives to innovate and the use of the innovation, which can be difficult to reach.

If one takes the case of software patent system, one observes some differences between US patent system and EU patent system. While granting patents becomes mainstream in the current US patents system, the trend goes opposite in the EU. Indeed, softwares can’t be patented there (with exceptions).

If one would like to harmonize rules in software patents domain, what would be the optimal patent design? To answer this question I will consider 2 dimensions of the patent: the breadth and the length.

Firstly, I believe that patent durations should certainly be under the actual legal time of 20 years. In my opinion, such a constraint should not exist taken that the “software world” is rapidly evolving and that, for instance, software from 5 years ago are now unused or even obsolete.

Furthermore, a software patent can be a source of competitive advantage. Shortening the legal time could be an incentive for the firms to keep innovating as their previous innovations would fall into the public domain much faster, taking their competitive advantage with them. Firms should keep innovating to stay competitive. However, although the duration should be shorter, it should remain substantial. Otherwise, the incentives to innovate will vanish given that the innovator won’t be able to appropriate the return of his innovation.

Secondly, I believe that the breadth of the patent should be large, in order to compensate for the shorter duration. Let me explain.

First of all, there is irrefutably a huge benefit for the innovator as he is fully protected of potential substitutes and can manage to consolidate his competitive advantage resulting from his innovation. Then, one should keep an eye on the fact that most innovations are based on previous ones. A larger breadth will force other firms to find new ways of doing the same things and beyond. However, a “too wide” protection could paralyze all other firms as there is always some degree of interdependence within software, meaning that it would kill concurrence, which is rarely a good thing for the consumers and more generally for the total welfare. In that case, start-ups and SME’s would be the first victims as they don’t possess the financial means for legal battles with some giants of the industry such as Apple for example.

In conclusion, I believe that this short comment has brought to light some of the stakes of patent protection. However, the reader should keep in mind that the issue is far more complex than it might seem as less protection implies more competition, which often benefits to the final consumer but, at the same time, puts a brake on innovation.

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Mario Medina
The software patents shouldn’t be that generic, patentees try to gain more money patenting the final goal of the program more than the method, that is terribly wrong because if there is an engineer who can solve a problem with an easier method cheaper and faster, he might not publish his method because he won’t want to pay de patent,…
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The software patents shouldn’t be that generic, patentees try to gain more money patenting the final goal of the program more than the method, that is terribly wrong because if there is an engineer who can solve a problem with an easier method cheaper and faster, he might not publish his method because he won’t want to pay de patent, and that will stop the software advances, it is unfair to try to own a solution and not a method, it produces more costs to the society just for the selfish person (company) who wants to received more benefits from their code.

In the other side, one thing that is conducting to this patenting situation is the piracy, people just crack programs and they can use them for free forever, this situation is really common and for example in México if you are not very good with computers you can just buy whatever program you like for one euro instead of buying the legal one or purchasing the license of the program. This situation is not very fair for the programmers and maybe that is what makes them be so ambitious with the patents.

My point of view is that it is okay to patent software, one method but not the solution itself, and the piracy maybe won’t be such a big trouble if the patents last only 2 years instead of 5 years. Maybe I can illustrate my point with an example: If there is now available the new “©Microsoft Office 2015” with new features and faster than the 2010 version and you want it, it’s fair for you to pay for it, but if you’re poor and you just need a program for make your homework you should be able to download the 2010 version for free, although you won’t have the new features and is more slow. My point is that the new technology should has a price, however the useful but not sharper and newer one shouldn’t.

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Florian Simon
I'm certainly not qualified to analyse deeply this article and find the solution. However, if there are one thing that I'm sure, it is that human are lazy by natur. Most of the time, human need to have incentives to do things, in this case, to develop the newness. In fact, the incentive that having an technology advantage do not…
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I’m certainly not qualified to analyse deeply this article and find the solution. However, if there are one thing that I’m sure, it is that human are lazy by natur. Most of the time, human need to have incentives to do things, in this case, to develop the newness. In fact, the incentive that having an technology advantage do not always lead to a better position in the market. Indeed, newness must be melted with the ability to accomodate with the cultural dimension of the society. All these steps could be very difficult for firms to come up with a revolutionnary product. So let’s imagine without patents, it would be worth. As this article mentions : “Patents are vitally important to protecting intellectual property.” However, maybe that some modifications concerning sofware patent could be appropriate.

First, the thing the most relevant in this article was the fact that there is no harmonization across countries on the software patent. While United States are too permissive, European Union is too strict. Nowadays, no harmonization with globalization ? It seems, for my point of view, a paradoxal fact. If I have to fix this issue, I would harmonize, if not all the countries of the world, the United States and European Union at least whose cooperation is obvious. Therefore, a compromise would be found between both a state too permissive and an union too strict. As far as I am concerned, I would say that even if their point of view about software are very far from each other, the compromise found would be a better tradeoff than nowadays.

Second, I was surprised that United States allow vague patent especially the patent who protect more the function of the intellectual property than the steps to reach this function (which is the goal of a patent). For my point of view, I would prefer a strict rigor concerning the how a patent should create and write and be more permissive concerning the length of the patent. In fact, it’s a compromise without being one. Indeed, I think that the length of a software patent is not important inasmuch as software has a short duration.

To conclude, both an harmonization between United States and European Union and focusing more on the broadth of a patent than its length.

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Xavier Alexandre Pedrós
Both normative and economically, software patents should last a conditional, relatively short time-span and should be exclusively awarded to “genuine” inventions. Patents are thought to encourage innovation, not to guarantee monopoly power. I believe the US setting fails in accomplishing the previous by, first, having a broad definition of what an invention is and, secondly, the patent time-span. On the…
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Both normative and economically, software patents should last a conditional, relatively short time-span and should be exclusively awarded to “genuine” inventions. Patents are thought to encourage innovation, not to guarantee monopoly power. I believe the US setting fails in accomplishing the previous by, first, having a broad definition of what an invention is and, secondly, the patent time-span. On the other hand, the EU approach seems to be too hardware-oriented, and may fail to provide innovation incentives to software developers.

An invention should be defined as a new technical solution or a genuinely new functionality (in both cases, either hardware or software oriented). This means that patents should not be provided to “obvious” extensions of prior work. For instance, it is hard to consider Amazon’s “one-click shopping” (known as the option of enabling users to make single click online payments using payment information provided in previous checkouts) as a genuine invention. To me, it is rather an extension of payment checkout software. Having a broad definition of ‘invention’ such as one that allows Amazon’s one-click to be under a patent is not only unfair but also discourages innovation.

First, as seen above, a setting such as the American allows companies to attempt to patent almost anything. In some cases, actors may not even develop these patents: they may just be willing to seek rents from law suits. In order to avoid this, patent holders should be required to develop a product under a patent in a 5 years time-span -otherwise it should be obliged to license the patent. Seemingly, firms that exclusively buy patents to blackmail other players or to gain a dominant position, without actually exploiting these patents in productive processes should be banned.

Secondly, even if holders actually embed their patents into products, a broad definition of invention allows every single “obvious extension” to block other players from innovation. For instance, Amazon’s one-click can’t be implemented by other non-licensed software developers. The latter undermines the efficiency of new checkout software, even if it comes up with a new “genuine invention”, provided it can’t integrate one-click as a normalized feature. Finally, small players may be discouraged from developing new checkout software: these don’t have the resources to face law suits neither the money to afford the one-click feature.

In short, programming is about writing code. Novels and books are protected by copyright; the sentences and words that compose them are not. As I have argued, a wide definition of software invention would lead into impediments of new players to come up with genuine inventions, given that programming would need to avoid certain sentences and words. Regarding the length of patents, having browsed the US software patents directory, it is hard to find a single patent truly deserving a 20-year monopoly. As said above, it is crucial to fight against players not willing to develop products (or licensing) or actors that use patenting as a strategy to displace competitors. To do so, I would suggest a 5 to 7 time-span, conditional on product development and/or licensing to other producers.

Certainly, Amazon’s one-click has patent in the US while its application was rejected by the EU. In this respect, I believe that the EU framework provides more security to prevent monopolies on simple extensions from prior inventions. Therefore, I believe that the EU framework is closer to what should be done -at least in terms of the definition of an invention.

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Wenzheng Wang
Patents has a long history of the world,every country has it own measures for patent protection.In most of time,it seems perfect,but it still has some deficiencies in the filed of computer softwares.That is mainly because the particularity of softwares.At present,the computer language is fixed,programmers often use binary format to write the software,the final product of this process is source code.The…
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Patents has a long history of the world,every country has it own measures for patent protection.In most of time,it seems perfect,but it still has some deficiencies in the filed of computer softwares.That is mainly because the particularity of softwares.At present,the computer language is fixed,programmers often use binary format to write the software,the final product of this process is source code.The problem is that we always focus on how to protect the source code,but forget the technical solutions of this code.As Prof.Lemley said, we should draw attention to methods of achieving the function rather than the function itself.Because of this problem,some companies write the source code to gain the patent,and obtain profits relying on published patent license.So even if these companies do not have real products or service, they can still earn money by published patent license.Some scholars think that software patents should be abolished.For instance,Vivek Wadhwa (He is a Visiting Scholar at the School of Information at UC-Berkeley, Senior Research Associate at Harvard Law School and Director of Research at the Center for Entrepreneurship and Research Commercialization at Duke University),he claims that software patents (in the US) has a negative impact on innovation.

“Surprisingly, companies that held patents—even venture backed—didn’t believe that patents made them more likely to innovate. Even more surprising, a quarter of companies that licensed technology from others said they did this to avoid lawsuits—not to gain technology or knowledge. In other words, the patent constituted a weapon or a trophy rather than a way to obtain revenues from others’ commercial adoption of their technology.
Pam Samuelson, one of the co-authors of the report, says that her conclusion from the research is that the world may be better off without software patents; that the biggest beneficiaries of software patents are patent lawyers and patent trolls, not entrepreneurs.

In my opinion,the software patent is not perfect,however, it is still a necessary existence.Although it has negative effect of innovation,but on the other hand,it protects the rights of innovators,which is largely inspired innovation.And without patent protection, piracy will become a biggest problem,it may make companies loss billions of money in sales. So we can not abolish software patents due to some disadvantages,but should make some changes in the duration and breadth.As I mentioned above,there are still some problems on the definition of software patents.The range which software covered is too wide.So when people want to create a new software,they have to pay a lot of money to patent trolls.It is not fair.It is just like there are two ways to Roma,and one way was occupied by one person,all the people who wants to go to Roma through this way should pay to this guy.But if one person wants to through another way to Roma ,he should also pay to this man,because this men was the first one who found a way to Roma.It does not make sense.Hence,I think we should change the judged way of software patents–not only focus on the result and source code,but also pay attention to technology solutions.

Moving to the duration of software patents,I think 20 years is too long.It should be recognised that companies would earn lucrative profits from long duration of patents and these profits may provide financial support for business innovation.But as we know,laptops are refreshed yearly,cell phones even more frequently,and with a lift cycle that short,long-term patent protection would exercise a bad influence on the innovation.It is reasonable to pay for the innovation,but it is unreasonable to pay for the basic theory like mathematical formula.We establish patents to encourage innovation,but these patents are not setting up obstacles for innovators.Under the conditions of a given rate of return ,the effect of patents duration may be different in some industries which have different investment risk and different success rate of innovation.Based on the law of diminishing marginal utility,with the increase of industry innovation efficiency,the optimal patent period increased at the very beginning,but started to decrease after the peak.Therefore,it is necessary to set different patent term and give different protective measures separately,depending on basic characteristics of the industry–especially the innovation rate of the industry.

Reference:“Why We Need To Abolish Software Patents”
http://techcrunch.com/2010/08/07/why-we-need-to-abolish-software-patents/

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Brodheim Dimitri
Nowadays, the software world moves faster than many others, and the debate about the patentability is increasingly rage. Laws are broken and big companies are fighting with each other about the patentee… But why do they brake laws? Why can’t they wait the end of the protection? Firstly, let’s have a look at the patent duration. In the Software sector, I…
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Nowadays, the software world moves faster than many others, and the debate about the patentability is increasingly rage. Laws are broken and big companies are fighting with each other about the patentee… But why do they brake laws? Why can’t they wait the end of the protection?

Firstly, let’s have a look at the patent duration. In the Software sector, I think that the duration mustn’t be too long. It would be preferable that innovation are patented for 3 years. It would let the competition unchanged. Indeed, on one hand companies shouldn’t have to wait during, for example, 20 years until the possibility to develop the innovation which is a nonsense because the software world moves faster than many others. On the other hand, a short period will encourage others companies to still stay competitive in the market. And as a result, the company which has the patent, we’ll be encourage to develop this innovation to find an advantage. So, I think that 3 years is perfect, it is not too much, not too short (which could reduce the motivation to innovate).

Secondly, concerning the breadth, which, according to ‘’ Industrial Organization Markets and Strategies, measures the degree of patent protection”, the book says that because patent length and breadth can used as substitutes; “if the marginal rate of substitution of patent length for breadth is larger on the incentive to innovate than on social welfare, the optimal patent is broad and short; otherwise, it is narrow and long”

Another important question is to know when the patent should be given. In the software world, I think that an innovator should obtain his patent when the software is finished and operational. Indeed, having an idea is not enough to bring innovation. Patent encourage innovation, but if companies could patent only their idea, which come before the “real innovation”, it could discourage the others companies who work on the same project.

In conclusion, I think it’s important to reduce the length of each patent to 3 years but it’s also significant to note that the length also depend on the marginal rate of substitution of patent length for breadth. Moreover, before finding an appropriate patent length and breadth, the software must be finished and operational.

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Luyanqi Zou
Computer software is a high-tech products,which is the core of the information industry,has an extremely important role to improve the quality of economic operation. However, any kind of intellectual property system has always found a balance point between the public interest and the interests of rights holders. Although software patents protect certain rights which given to authors, at the…
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Computer software is a high-tech products,which is the core of the information industry,has an extremely important role to improve the quality of economic operation. However, any kind of intellectual property system has always found a balance point between the public interest and the interests of rights holders. Although software patents protect certain rights which given to authors, at the same time,the law limited this right be strictly to avoid the phenomenon of technological monopoly occur. Software patent system tries to provide incentives to innovators, at the same time, it prevent patent monopoly welfare losses

Within patent duration, innovations are strictly protected by patent system; but after patent duration, patent expiry and innovations enter the public domain then become public goods. Generally, in the longer term, the more business innovation incentives,the more monopoly profits will gain, and the greater the loss of social welfare. Conversely, in the shorter the period, the innovation incentive is clearly smaller, so as the social welfare loss.

On the one hand,the long-term technological progress and economic growth require a patent term length should be long enough to meet the purpose of innovation sufficient incentives. on the other hand, monopoly rights static efficiency requirements for patent term loss should be short enough to minimize the loss of social welfare.

In a given period of protection, when marginal revenue of enterprises in technology innovation equal to the marginal cost of R & D spending is the the optimal R & D costs. For the government, considering the optimal patent duration, it should make the extension of patent duration to bring marginal social cost equals marginal social benefits.

In my opinion, the efficiency of the patent system have a unified patent length ( invention patent term of 20 years) is doubtful.

In order to increased social welfare, different companies should be offer different years of patent protection duration.
The positive effects brought about by a long patent duration is to increase the number of invention that under conditions of a given level of investment will increase the output:
Meanwhile,a long period of patent term, that means increasing monopoly would distort the allocation of resources resulting in the loss of social welfare.

Therefore, the optimal patent term is these two effects balance at the margin, that is, the optimal conditions for patent term is to maximize social welfare.

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Sruthi Chekuri
Patents play an essential role in encouraging creativity and innovation in technology and promoting the development of better and more efficient ways of doing things. The existing patents may have been adequate till date, but the world has become increasingly digital at a very fast pace and thus, it is now necessary to reconsider how they relate to digital technology…
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Patents play an essential role in encouraging creativity and innovation in technology and promoting the development of better and more efficient ways of doing things. The existing patents may have been adequate till date, but the world has become increasingly digital at a very fast pace and thus, it is now necessary to reconsider how they relate to digital technology and make changes if necessary.

I think that the USPTO patent regulations are far too broad to be appropriate in today’s context. By giving out patents for a software or the end-product, the United States is indirectly restricting innovations in better ways of achieving the same goal. This would result in inefficiencies that could otherwise be eliminated. Also, such broad definitions of what is applicable under a particular patent would cause confusion and legal hassles that further result in a waste of time, money, and effort. By the same arguments, the European Union’s approach seems to be more efficient and relevant.

There should be both regulations in terms of ‘length’ and ‘breadth’ for patent laws. Ideally, ‘length’ regulations should be customized to the type of digital technology, based on an estimate of its period of relevance. However, this may be time-taking and involve too many resources, making the patent process lengthy. So, a broad ‘length’ such as 5 years as mentioned can be set, and changed when necessary. But ‘breadth’ regulations should definitely be implemented. It should encompass the process and method and not the overall result.

Defining the patentability rules objectively would help save bureaucratic time and effort, but a certain amount of flexibility is necessary to make sure the process is efficient and serves its purpose. Basically, it should just be ensured that the rules do not limit and instead, achieve the ultimate objective of rewarding and encouraging further innovation in the same field.

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AKASHDEEP SRIVASTAVA
Any innovation needs protection and thus software patents are necessary. They might not allow a party other than the developer to use the particular solution but the public knowledge of the capability, method or functionality might provide ideas of other innovative solutions to the developers. Having established the need for software patents, the resolution of the issue of patent length and…
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Any innovation needs protection and thus software patents are necessary. They might not allow a party other than the developer to use the particular solution but the public knowledge of the capability, method or functionality might provide ideas of other innovative solutions to the developers.

Having established the need for software patents, the resolution of the issue of patent length and breadth seems to be tricky. The issue of length is critical because a longer length reduces the usefulness of the patent for other parties because of the extremely dynamic nature of the software industry. The technologies, methods and platforms keep changing every few years and the older ones get outdated. Thus, a longer patent duration would seriously undermine the use of current technology by other developers. Also, a shorter patent duration could itself be a demotivator for software related innovation.

The issue of breadth is important as the patenting the function rather than the method of achieving the function threatens the very idea of patents, i.e. innovation. The issue then just reduces to a rat-race of thinking a business function and accomplishing it by any means necessary, even though the method might not be innovative and efficient. Thus the EPO method seems to be more effective than the USPO method.

Thus, in my opinion software patents are necessary but the length of the patent could be decided keeping in mind the life-cycle of the underlying technology, platform or software and the breadth of the patent should only cover the innovative nature of the method used to accomplish the function rather than the function itself.

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Cavillot Laurie
Intellectual property rights are, I guess, a very complex domain. The role of a patent is multidimensional; I think the most important one is the protection of someone's creation but it is also a tool to encourage innovation, precision, competition... It makes it difficult to set boundaries on the "patentability". Furthermore if it is for software. Firstly, about the difference between…
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Intellectual property rights are, I guess, a very complex domain. The role of a patent is multidimensional; I think the most important one is the protection of someone’s creation but it is also a tool to encourage innovation, precision, competition… It makes it difficult to set boundaries on the “patentability”. Furthermore if it is for software.

Firstly, about the difference between US and EU, my point of view is that EU approach is more consistent. Having an idea is not enough to bring innovation and if we consider patent as a tool to protect innovation, then it is not applicable when the support isn’t novel as well.
But I feel like it is not totally right. When I think about smartphone applications, I don’t think there is thousands of languages to create an “app” (but I don’t master any of them so I might be wrong) and although, some particular applications are revolutionary! It wouldn’t be fair to ignore these innovative concepts.

Secondly, it seems that adjustments are necessary but which one? Posner’s idea does’t convince me. If we decide to patent some softwares, one of the benefit I would count is having time to develop the concept, enough time to go further with the idea. Nowadays, the software world moves faster than many others and shortening the period wouldn’t help.
On the other hand, Lemley’s suggestion seduces me more. As I said earlier, I think the support should be novel too to be patented but we can see a support not only as material or technical but as a combination. Most of innovations are built on others that were built on others, etc… Scott Berkun says in “The myths of innovation”: “The combination might be novel, or used in an original way, but the materials and ideas all existed in some form somewhere before…” (talking about the invention of the keyboard). So the function could be, according to me, a criterion of patentability.
Another possible way to design patents that would fit better the challenge of softwares could be based on derivating different categories according to the device or the domain of application (whether it is for medicines, or games). Then, the requirements would be adapted for its function.

Nevertheless, these ideas make the patent procedure even more complicated and the question become: does it really stimulate innovation? Isn’t it a brake more than an incentive? It might be but then, creators should have the needed help to accomplish their project while patent would be more fitted to the creation.

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Sailesh Ganesh
There are a couple of different aspects that we must consider here. First, should patents be granted for software at all? The answer is yes. Software inventions do not require as much capital investment as inventions in other industries such as pharmaceuticals, or automobiles, but they do represent the effort of a programmer in coming up with an innovative piece…
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There are a couple of different aspects that we must consider here. First, should patents be granted for software at all? The answer is yes. Software inventions do not require as much capital investment as inventions in other industries such as pharmaceuticals, or automobiles, but they do represent the effort of a programmer in coming up with an innovative piece of code, and as such, deserve some level of protection.
Second, how broad should a patent be? We can consider a software function and a specific way of implementing it to be roughly analogous to a product and a process. In other fields, patents are granted for both, and therefore, a case can be made for extending the same to software patents. However, software is very different from other fields, and it does seem reasonable to accept the EPO policy here.
Third, what is the ideal patent duration? Duration and breadth are policy substitutes, and since a narrow breadth seems correct, the duration should be longer. Yet, precisely identifying how long a patent should last is a matter of empirical study. The main difficulty is in identifying the values of the parameters required to optimize patent duration. At best, an average value for each of these can be determined, and even so, the actual values may encompass a wide range of values. Further, software is marked by a high level of innovation and any cost and profit values computed today may not hold true one year down the line. This would necessitate recomputing the optimal patent duration at a regular interval.
A better solution would be to fix a short patent duration of, say, one year, and allow for renewal of the patent for a fixed fee for an additional year, for a maximum total duration of five years. This solution provides protection where innovators most desire it, and also controls the duration dynamically according to the utility derived from the patent.

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De Temmerman Yann
First I think that patents on software are indispensable for one main reason: Patents motive the innovators. If a company spent out a lot money in research and development for a product it’s really normal that she wait benefits, and that rival companies don’t use this technologies for their own products. It would be unfair. To obtain a patent I…
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First I think that patents on software are indispensable for one main reason: Patents motive the innovators. If a company spent out a lot money in research and development for a product it’s really normal that she wait benefits, and that rival companies don’t use this technologies for their own products. It would be unfair.

To obtain a patent I find that the software must fill two conditions: To be finish and operational. Just have an idea of project should not be patented. Because there is not efficient product and also because it could be discourage the efforts of others companies that works on similar projects. So associations who deliver the patents should only patent the structure of the software and not his goals. Therefore the company can use his innovation and is protected from the others companies that can’t use the application but only try to create a similar product which use a different way to arrive to these same goals. An example with a drug: If you invent the first vaccination against the AIDS, the process of fabrication and the components must be patented, it’s the reward for the efforts of the company. But If another enterprise find a different mixture with other process,… but has the same effects in my opinion it could be also patented.

About the duration of the patent. I think that it must not be too long. For the example 3 years is sufficient to spread out and your software. And it’s also a motivation for the company to ameliorate the initial product. During the three first years they have the time to take some significant advantage on the concurrence. And 3 years is also not too long to discourage the others. If you give a patent of 20 years on a product I think that you could have two problems: The first will maybe stop the development of the initial product and it will discourage the others … So we could be in a situation of monopole that is not the best for the market. I have also an idea of “extension of the patent”: If after 3 years the company has developed and ameliorate the initial product, the innovators should the opportunity to keep their product under protection for a few extra years.

Finally I agree with a patent that encourages innovation. So not too long and only focused on manufacturing methods, components … but not on the goals of the software.

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Clarisse Werbrouck
It is obvious that when you compare how the USPTO and the EPO grant software patents, the US approach seems rather inefficient. In my opinion, the main problem the USPTO faces is that they let people get patents that have a too broad scope. Firstly, these patents in the US are defined by the problem they are solving rather than the…
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It is obvious that when you compare how the USPTO and the EPO grant software patents, the US approach seems rather inefficient. In my opinion, the main problem the USPTO faces is that they let people get patents that have a too broad scope.

Firstly, these patents in the US are defined by the problem they are solving rather than the technical process of the software. Since the official objective behind patenting a software is to avoid its use by the competition, the patent should not be applicable to industries that have nothing to do with each other: some problems are transversal to many unrelated industries and using these softwares should be allowed if it doesn’t cause a real “loss” for the patentee.

Another problem with the USPTO approach is not only that they allow broad definition, but also that they encourage patentees to give really vague descriptions of their softwares: indeed, who would not try to increase the scope of his patent as much as possible? By doing so, people in unrelated industries are being sued for patent infringement even though it was not intentional. Such behaviors have a consequently cost for the society.

Regarding modifying the length of patents in the digital market, I have a more careful point of view. On the one hand, this market evolves at an impressive speed and long patents for softwares could represent an obstacle for innovation in that field, which is why patents should be shortened. On the other hand, the length of patents should not be modified since companies protected for shorter periods will approach R&D projects more carefully because of the increased risks. When considering all this, I believe that the problem the USPTO faces should not be solved by modifying length since either approaches can have negative impacts on innovation and thus on economic growth and well-being.

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Anne-Cécile Annet
Patents allow a company to protect the fruits of their investments and thus encourage technological innovation. On the other hand, these securities granting an absolute monopoly on the invention, they can be dangerous. The allocation of these monopolies costs to society. The patent is a restriction of freedoms, particularly because, as a monopoly, the patent reduces competition, because it helps…
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Patents allow a company to protect the fruits of their investments and thus encourage technological innovation. On the other hand, these securities granting an absolute monopoly on the invention, they can be dangerous. The allocation of these monopolies costs to society. The patent is a restriction of freedoms, particularly because, as a monopoly, the patent reduces competition, because it helps prevent others from using certain processes or the production of certain goods. Thus, the patent may hinder further innovation by preventing the free use of knowledge.

The patentability of software therefore remains a touchy subject. On one hand give the right to the patentability of software can allow small businesses to fight a giant preventing copying its products without compensation, on the other hand, the same giant has the financial strength to drop hundreds patents that would give him control over computer science.

I think that with patenting software we support the artificial creation, which curbs innovation and the spreading of knowledge. Indeed, in computer science, especially in the field of software, innovations are cumulative and incremental; every innovation is based on those that preceded it.

In addition, I think the length of time of software can difficulty be associated with the length time of a patent: the software will be obsolete in a few years, but the patent will continue to decline innovations based on patented technology for decades. Software patents therefore give no incentive for innovation: they are used in a roundabout way to ensure by law a competitive advantage.

If we wanted to make software patentable, I think we should imagine a legal exception. The duration of the standard patent is twenty years and this term does not correspond with the life of software. To reduce the monopoly of the original designer, and to preserve the original purpose of the patent (protecting investments, encourage innovation without endanger competition), it would reduce the time of the validity of the patent for a software.

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Alexis Winders
The increasing complexity of technologies leads to problems that did not appear previously, especially with software technologies. I think the authors of the article from the NY Times have a point when they say that the current patent system is old-fashioned and not adapted to the actual competitive system. This might lead to the emergence of speculators trying to register…
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The increasing complexity of technologies leads to problems that did not appear previously, especially with software technologies. I think the authors of the article from the NY Times have a point when they say that the current patent system is old-fashioned and not adapted to the actual competitive system. This might lead to the emergence of speculators trying to register a very broad patent without real innovation or concrete basis and then suing other companies that used some concepts of a previously registered patent.

We can again notice that the European point of view is more restrictive while it prevents such problems as mentioned before (lawsuit for using pretended patented technology).

Regarding the length of patent for digital technologies, I think it will be better for the economy and the society to have a short length. It will indeed allow companies to enjoy quickly the patented technology and make improvements.

As far as the breadth is concerned, it might be the fairest way to protect some technology, but it is probably the hardest way to do it. Discussions about what exactly need to be patented are, I guess, very difficult and technical. With the increasing speed of the development of technologies and their increasing complexity, it will perhaps be a lost of time and money to start discussing and studying what should precisely be protected. As you know that another competitor can come with a similar proposal as the industrial espionage is another key element to take into account… but this is another debate.

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Anissa Belkhazri
As any material in the field of patents, we face two objectives. On the one hand, the promotion of R&D and on the other hand the protection of innovation by some legal instruments to provide the motivation to innovate. However, it seems to be difficult to conciliate this two objectives. In fact, it is particularly difficult in the field of softwares…
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As any material in the field of patents, we face two objectives. On the one hand, the promotion of R&D and on the other hand the protection of innovation by some legal instruments to provide the motivation to innovate. However, it seems to be difficult to conciliate this two objectives.

In fact, it is particularly difficult in the field of softwares because of the presence of «cumulative innovations» (1), which means that to develop a new software it is essential to use subsequent innovations to create it. A new software is necessarily built upon existing technologies and innovations, thus based on embedded knowledge. In order to reach the ultimate aim that consists in increasing social welfare, I think that software patents should not be granted.

In the current state of things, on the contrary of the US Patent and Trademark Officer (USPTO) that grant software patent without any technical innovations, the European Patent Office (EPO) does not grant software patent. In EU, to be granted, an invention must bring a contribution in a technical field (2).

I think that if software patents are granted in Europe, one will fall into the same problem that already exists in the USA. In the USA, we observe a software patent thicket indeed. The patent thicket is defined by the economist Carl Shapiro as «a dense web of overlapping intellectual property rights that a company must hack its way through in order to actually commercialize new technology ». The overlapping software patents lead to several negative consequences (3), one of these consequences is the blocking innovations because of the fear of lawsuits. The example of smart phones wars in the USA that routinely erupt is relevant. «The smart phone patent wars have produced a large number of US lawsuits involving major industry players like Samsung, Google’s Motorola Mobility divi- sion, and Apple, with many counterpart suits filed overseas» (4). Nowadays, in the USA, it is difficult to innovate without having the fear of being suited by software patent owners, which would lead the innovators to a long and expensive contentious road.

To conclude, instead of putting energy on trial, it would be wiser to devote energy to innovate. Meanwhile firms sue each other, they forget that one of the main purposes of creating softwares is to develop powerful tools for innovation. Unfortunately, holders of software patents have often an incentive to use their software patent as a sword instead of using it as a shield.

References :

(1) Belleflamme, P. and Peitz, M. (2010) Industrial Organization: Markets and Strategies.
Cambridge: Cambridge University Press.

(2) http://www.epo.org/news-issues/issues/computers/software.html

(3) The Software Patent Thicket : A Matter Of Disclosure, Rosa Maria Ballardini, SCRIPT-ed – A Journal of Law, Technology & Society, 2009, Vol. 6-2, pp. 207-233.

(4) Stuart Graham and Saurabh Vishnubhakat, Of Smart Phone Wars and Software Patents, Journal of Economic Perspectives, Volume 27, Number 1, Winter 2013, pp. 67–86.

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Sarah Lorant Dourte
As patents for software are very broad (as said in this article), they don’t need to be protected for a long period to create incentive to innovation. Both length and breadth generate the same level of profit for the firm who deposed the patent. USA choose breadth and Europe choose length but is there one of the two that is…
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As patents for software are very broad (as said in this article), they don’t need to be protected for a long period to create incentive to innovation. Both length and breadth generate the same level of profit for the firm who deposed the patent. USA choose breadth and Europe choose length but is there one of the two that is better in term of welfare? The book of Lévêque and Ménière gives the solution to this question. They said that a long patent assure more imitation which allows more completion. That competion gives more surplus to the consumer. But imitation is not socially valuable because it doesn’t create new technologies or techniques. Then, they think that a short broad patent is better. A petition from different authors has also an argument in disfavor of length in patents. They say that the present value of the future profit when a patent is long is very small and that the cost in term of monopoly of those long patents is high. So we could think that the software patents are a good system but there is a problem due to the particularities of software that isn’t a classic innovation.

As they explain it in this article, “As a result, some patents are so broad that they allow patent holders to claim sweeping ownership of seemingly unrelated products built by others.” One reason of this problem is that a software innovation is a “cumulative technology” as said in Lévêque and Ménière. They explain two things. First, sources code of software are partly elementary thus are used by different software. Second, the source codes use protocols that are also innovations. Then a programmer can’t really compute a source code for a program without attend to a patent.

I can see two solutions to this. One is to reduce the breadth of the patents for software. But to keep incentive to innovation we have to increase the length of the patents because if we don’t, the profit induced by the innovation can’t outweigh the costs of producing that innovation. Another solution is to promote the use of secrecy for software innovations. I think it is a better solution because it doesn’t affect the production of related innovations and it allows innovators to appropriate the profit generated by their innovation. I also think that secrecy is more easy for software than for other technologies because as said in the course they are costly to imitate (the basis of software are codes that are difficult to recreate).

Lévêque, F. and Ménière, Y. (2004). The Economics of Patents and Copyrights. Berkley Electronic Press

Brief of Georges A. Akerlof et al. as Amici Curiae in support of Petitioners at 12, Eldred v. Ashcroft, No. 01-618.

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Ricardo Pereira Gomes
In my opinion, software patent mustn't be granted too easily, thus I agree better with the EPO approach which restricts the number of functional patents. Indeed, I agree with the idea that this kind of patent could restrict the future research and hence slow the innovation's growth. As we seen in this article, the US grant a lot of patent…
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In my opinion, software patent mustn’t be granted too easily, thus I agree better with the EPO approach which restricts the number of functional patents. Indeed, I agree with the idea that this kind of patent could restrict the future research and hence slow the innovation’s growth.
As we seen in this article, the US grant a lot of patent that the owners use them to prevent the others to create different software which use the same function but the creation is really different.

I think patent would exist because they allow the owners to use their invention without others benefit from the efforts of this one. And hence patent give greater incentive to innovate.

In terms of duration, I think that patent mustn’t be too long because in the field of technology, the emergence of new innovations is quicker. A patent granted for a too long period becomes useless after 2 (for example) years because of new innovations more interesting.
An other argument is that this 2 years gives an advantage to the owner to develop (in advance) other innovation based on this patent.

To conclude, I think patent for software is required to give greater incentives to innovate. But, we must be careful and not deliver a lot of them because we could have a disincentive to innovate.

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Tomè Clarissa
I start my consideration of pros and cons of software patents examining the art. 27.1 of TRIPs. The article states that: “ […] patents shall be available for any inventions, whether products or processes, in all fields of technology, provided that they are new, involve an inventive step and are capable of industrial application. […]”. A software is “any set of…
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I start my consideration of pros and cons of software patents examining the art. 27.1 of TRIPs. The article states that: “ […] patents shall be available for any inventions, whether products or processes, in all fields of technology, provided that they are new, involve an inventive step and are capable of industrial application. […]”.
A software is “any set of machine-readable instructions that directs a computer’s processor to perform specific operations”. According to me, a software can therefore be considered as an invention in the field of technology, provided that it is new, involve an inventive step and is capable of industrial application.
To my opinion the patent system is fundamental in order to grant the protection of intellectual property rights e to incentivize R&D and I think that these advantages of the patent system are valid also for software patents.
In the article of New York Times it’s stated that “Unlike patents for new drug formulas, patents on software often effectively grant ownership of concepts, rather than tangible creations”; I think that this is true but this doesn’t prevent software to be considered as patentable since we are in the digital era in which most of the concepts can be considered innovative and bring benefits to society even if they are not tangible. Nowadays we cannot consider only mechanical innovations but also digital ones.
As for the optimal patent length and breadth for software I don’t think that there is an easy and immediate answer. It is very difficult to determine how long a patent should last and what it should include. I argue that software patents should last less than 20 years because digital world is subject to a continuous innovative process but I’m not able to give a precise length because I think that a deep study on the subject is needed. As for the breadth, the EPO states that the term software is considered to be ambiguous; software steps are often defined in terms of the function they perform and it is difficult to establish the process through which the function is achieved. There should therefore be specific rules that establish what is considered with the term software and what inside the software is actually patentable. I agree with Prof. Lemley when he says that we should patent not a software function, i.e. the problem that need to be solved, but the innovator’s solution to the problem, i.e. the specific way to implement the function.

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Hexin Shi
Patent law allows the owner have exclusive rights about manufacture, use, transfer, licensing and marketing of their patent, it have very strong protection of software. However, patent protection requires that the software has novelty, creativity and practicality, but 90% of the software is difficult to meet this standard, thus, in order to most of the software cannot obtain patent protection.…
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Patent law allows the owner have exclusive rights about manufacture, use, transfer, licensing and marketing of their patent, it have very strong protection of software. However, patent protection requires that the software has novelty, creativity and practicality, but 90% of the software is difficult to meet this standard, thus, in order to most of the software cannot obtain patent protection. And software patents need to go through a strict examination and approval, this approval at least one year to complete. But, the economic life of software is often only one or two years, after the patent is approved, the software probably already eliminated by the market. Even if the software to get a patent, but the patent maintenance costs are also quite high. So we can see the software patent system doesn’t work very well.

About patent duration, i agree that apatent covering software should survive for a term of five years. Because the software updates quickly, and the economic life of software is often only one or two years, and the patent maintenance costs are quite high.

For patent breadth, i think software patents cover a very broad, but they should be more specific and narrow it down. This happens because those large organizations tend to use these patents for legal warfare. This patent is actually preventing rather than encouraging innovation. And even worse is that small companies or individuals can not afford time and money of patent lawsuit. Finally, software patents defend a monopoly.

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Alexandre Faber
In the following comparative analysis of innovation under no-patent and patent regimes, I deviate from the common assumption that under the no-patent regime, innovation suffers from perfect appropriability by imitators, and further consider two particularities of the software market (namely the existence of network effects and switching costs), concluding that, in the case that the above assumptions are satisfied,…
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In the following comparative analysis of innovation under no-patent and patent regimes, I deviate from the common assumption that under the no-patent regime, innovation suffers from perfect appropriability by imitators, and further consider two particularities of the software market (namely the existence of network effects and switching costs), concluding that, in the case that the above assumptions are satisfied, patents might not only be redundant for innovation but actually potentially harmful for social welfare because of (1) the potential monopolization of the market and (2) the lower degree of innovation.
It is correct to assume that knowledge, i.e. the product of innovation, has a public good character. Therefore, once a new process or product is launched on the market, competitors might actually take the product into pieces, analyse its components (or in the case of software, analyse the package of applications, functions, scripts etc.) and thereby have a fairly good idea of how to imitate the innovator’s product.
In the formal analysis of innovation under the no-patent regime, economists usually conclude that, as a new product or process is launched on the market, imitation happens instantly and at zero fixed costs. Under such circumstances, the pioneer is actually punished for innovating, since he is the only one to bear the fixed costs incurred by R&D. The incentive to free-ride on the innovators’ R&D investments and creation of knowledge leads to underproduction of innovation (i.e. underinvestment in R&D), as is generally the case for public good markets. The suggested solution to that problem are IPR.
However, in a number of markets the above train of thought is not convincing. Imitation itself is costly, and sometimes imitation is in fact so time consuming that it would not make economic sense to even try to produce an imitation (see Levin et al. 1987: 809-810). Now, one could argue that in the case of software, this is not the case. Clearly, in the absence of IPR, I could go ahead and copy-paste the source code of another program, let’s say STATA, and perhaps change the name of the product. That’s it; I can do that almost instantly (actually I personally can’t, but you get the idea anyway) and at very low fixed costs. It seems as if the innovator has no more advantage on the imitators; actually the innovator bears the higher fixed costs of R&D expenditure. Ergo, no incentives to innovate?
No, still there might be. In fact the innovator might have a first mover advantage in other terms like having a better idea of the product (he is asymmetrically better informed than his competitors); unsurprisingly so, he conceived and designed the product. After all, the innovators’ employees programmed the software, they knows why, what and how the different components of the software fit together as they do. They are also the most likely to be able to offer solutions to the problems faced by “bugs” in the software; or to offer improvements to the applications (after all the programmers might have been thinking ahead, at future project). This does not even need to be the case. Actually, it is sufficient if consumers think this way, thus preferring the innovator’s good to the others at equal prices (i.e. perceived vertical heterogeneity). A case study that supports this argument is presented by Boldrin and Levine (2010: 21). They state exactly such a situation on the Linux operating system market: so-called “Ret Hat” sells a modified version of the Linux operating system at a positive price. Since Linux is open-source, anyone can just copy-paste the programming code of Ret Hat’s OS and sell the product, legally. “HCI Design” and “Linux Emporium” (and subsequently many others) are said to have done just that. Although the operating systems of the two latter companies were sold at nearly a quarter of the price, they never took off, the innovator, Ret Hat, remaining the market leader, to date. Although I have no facts at hand, the above story suggests that Ret Hat’s effort into modifying the Linux OS was an economically worthwhile endeavor.
Put bluntly, the innovator potentially has some non-negligible first-mover advantage. This advantage might make innovation interesting even in the absence of patents. In fact, welfare might be higher than with patents put in place (see results of the formal analysis offered in Pollock, 2008).
Additionally to the above, one also needs to consider the potential effects on the market structure of some characteristics of the software market and how they interact with IPR. In particularly think of network effects (in this case, the personal valuation of a software increases with increasing popularity of the program [because it is more likely that the relevant companies will ensure widespread compatibility of the product with other products and because the usability of the product increases with the number of users; i.e. facebook or skype alone doesn’t make sense]) and switching costs (costs directly incurred by switching to a competing product, e.g. learning costs and costs of incompatibility [I can’t use my Microsoft Office or STATA for Windows on a Mac, i.e. I would have to purchase those again]). I believe that patents on markets with network effects and the possibility of firms to create switching costs promote long term monopolization of the industry.
A brief thought experiment should suffice to explain my main worry with allowing the innovator to patent his invention under such circumstances. Assuming that the innovator can patent, there will be no response to the innovator’s product, unless competitors manage to work around the patents to produce a substitute. This however would probably happen with a time-lag. If this lag is sufficiently long, the innovator might ensure a high market share, and if network externalities are sufficiently high, patent expiry will do nothing to promote competition on the market thereafter. If the innovator can further influence switching costs (e.g. not offer compatibility of files with the competitors’ products, etc.) he will raise them, thereby locking-in his customers. If this is so, patents are supportive to monopolization.
This is not to say that patents never make sense, and in fact the emphasized conditionality in the above argumentation also points to the possibility that they might actually be welfare-enhancing in the case of software. Also, as has been stated in previous comments, one might optimize the effects on welfare by creating different patent length and breadth designs, depending on the industry under consideration. Yet I am not sure there are any objective ways by which one could assess what the optimal patents would look like. Alone the fact that patents might actually be harmful, as shown in Pollock’s formal analysis, points to the possibility that IPR institutions are over-pretentious in their doings and might do more harm than good (e.g. by creating a loophole for particular interests, like for instance for the big monopolists desiring to sustain their dominance in future). IPR are (in most cases, perhaps not chemicals and pharmaceuticals) founded, as coined by Hayek (1989) in another context, on a ‘pretence of knowledge’ which we cannot possibly acquire. In case of doubt, better do away with it!?
Boldrin and Levine (2010): Against intellectual monopoly.
Hayek (1989): The pretence of knowledge.
Levin, Klevorick, Nelson and Winter (1987): Appropriating the returns from industrial research and development.
Pollock (2008): Innovation and imitation with and without IPR.

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Duvivier Julien
Having a patent system have a lot of disadvantages. If we haven’t this system, I don’t think it would slow down the innovation process. The patent itself isn’t a lasting profit, it’s the realization of the new product which brings the true profit. The patents only slow down the production process and are harmful for the customers. They are some artificial…
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Having a patent system have a lot of disadvantages.
If we haven’t this system, I don’t think it would slow down the innovation process. The patent itself isn’t a lasting profit, it’s the realization of the new product which brings the true profit.

The patents only slow down the production process and are harmful for the customers. They are some artificial way to protect the companies which are not able to quickly launch the new product or which are not able to make this idea profitable.
Furthermore they create a new market on the true one, which add virtual added value where the true one is the result of the idea: the finish product.
However, they are some sectors where the patents are useful as other constraints slow down the release of the product as in the pharmaceutical sector.

But for sectors like software, the scope of the patent is too difficult to define and instead of still increase the complexity and slow down the innovation maybe we should simplify and remove the patent system. Moreover this sector move so fast that the time to write and confirm the patent a new solution is often available and free as open source.

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Shashank Goel
In my opinion, from a purely economic point of view, having patents is more advantageous than not having them. The ex ante advantage of rewarding the innovator is pretty obvious. Even ex post, though there is an argument saying that patents create monopolies and hence deadweight loss for the economy, I believe that is not always the case. Infact patents…
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In my opinion, from a purely economic point of view, having patents is more advantageous than not having them. The ex ante advantage of rewarding the innovator is pretty obvious. Even ex post, though there is an argument saying that patents create monopolies and hence deadweight loss for the economy, I believe that is not always the case. Infact patents force competing firms to constantly innovate and come up with multiple solutions to the same problem. This is particularly true of the software industry.
In the matter of patent subjects, I side with EPO’s logic to an extent and believe that patent bredths should be limited to the novel way in which the innovator has found the solution to the problem, rather than encompassing the whole solution itself. This will also ensure that there is still room for competition in the economy and nobody enjoys a monopoly.
The length of a patent is a slightly trickier aspect. Because ideally the patent should be long enough to adequately reward the innovator yet not so long as to deny the whole society to benefit from it. In my opinion the length of a patent should be commesurate to the cost of the innovation, which is bound to be different for different industries. Innovators should be allowed to use patents only to justify their costs, beyond that it should be the efficacy of the innovation that should generate revenue for the innovator.

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Jean-Baptiste Ledoyen
I think there isn't a right length or a right breadth of all patents. Indeed innovations are very different according to the sector of activity. In some sectors, to develop a new product is much more tough than in other sectors. Time, costs, human resources, etc. are completely different if we innovate in pharmaceutical or in new energy than in…
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I think there isn’t a right length or a right breadth of all patents. Indeed innovations are very different according to the sector of activity. In some sectors, to develop a new product is much more tough than in other sectors. Time, costs, human resources, etc. are completely different if we innovate in pharmaceutical or in new energy than in software, app, etc.

A new way of energy conservation (or a new vaccine) requires several years of experiments and effort, a lot of staff, resources and money. Moreover when we start this kind of project, we have neither any certainty of success, nor possibility of clearly plan it. On the other hand, if we develop new software most of these parameters are measurable, or at least more predictable. Basically for an app we only need some programmers, a designer and some good computers with adequate software. We are far from the lab, the doctors, the searchers, the materials, etc. needed in energy or pharmaceutical!

Thus we need to have more incentive to innovate in the firsts sectors than in software development. That’s logical; any manager will evaluate risks of his project before launching it. We can clearly identify here which one is more risky; pharmaceutical/ new energy ones.
That’s why different lengths of patent seem to be appropriate. This incentive is mainly an economic incentive. Indeed how is it possible to convince investor our project is profitable if we know that a few months after the commercialization of our product, our competitor will already have the same? In this case, companies will decide to wait others firms develop new ideas and they’ll “just” keep it and develop it a little bit more…

Thanks to patent, companies have interest to develop products. In easily “copyable” environment (like pharmaceutics where we can easily split up components of a medicine and define which molecules are used) a long length is required! Seeing that we need to patent medicine several years before its commercialization (as soon as tests), numerous years of patent protection are useful.
Considering software for the apps, which are developed in a few months, a patent protection of some years is more appropriate (on the software itself, but for the app a “normal” length is fine). Indeed in these few years the software and resources involved into will be profitable, and the app will continue to yield to its creator.

Here I focus me only on two extreme sectors. I’m convinced it’s possible to generalize it to many innovations, creations, etc. We can find a system of “return of investment” (not only financial one!) which granted the length (and the breadth) of the patent to the need of development resources. It’s obvious that actual system is easier to manage, but the suggested one will incite people to innovate if they have a (more) clear vision of how they will be protect by patent!

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Brasseur Amandine
My answer development is based on the following readings: "Industrial Organization Markets and Strategies" and "http://www.nytimes.com/2012/10/08/technology/patent-wars-among-tech-giants-can-stifle-competition.html?pagewanted=all&_r=1&" I will focus on the patent duration and breadth that I would recommend. It’s important to determine them in order to find the best balance between promote diffusion and use of new innovation and preserving the incentives to innovate. First of all, the both should…
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My answer development is based on the following readings: “Industrial Organization Markets and Strategies” and “http://www.nytimes.com/2012/10/08/technology/patent-wars-among-tech-giants-can-stifle-competition.html?pagewanted=all&_r=1&”

I will focus on the patent duration and breadth that I would recommend.

It’s important to determine them in order to find the best balance between promote diffusion and use of new innovation and preserving the incentives to innovate.

First of all, the both should be limited to avoid an excessive monopoly power by firms using patents. Then, it’s important to know that the patent length and patent breadth can be used as substitutes (Industrial organization markets and strategies, p521).

Actually, the length patent protection is at least 20 years and the model used in the book “Industrial Organization Markets and Strategies, p 518” conclude that the optimal patent duration is finite.

Concerning the Breadth, which “measures the degree of patent protection” (Industrial Organization Markets and Strategies) the model (in the same book, p 521) concludes that “if the marginal rate of substitution of patent length for breadth is larger on the incentive to innovate than on social welfare, the optimal patent is broad and short; otherwise, it is narrow and long” because patent length and patent breadth can be used as substitutes.

The software innovations are cumulative and complementary (Industrial Organization markets and strategies. p 511) which leads to the first proposal of a broad and short patent. But it can be dangerous because a too broad patent involve “Often, companies are sued for violating patents the never knew existed or never dreamed might apply to their creations,[…]” (http://www.nytimes.com/2012/10/08/technology/patent-wars-among-tech-giants-can-stifle-competition.html?pagewanted=all&_r=1&.)

My conclusion is to implement a short length and a broad breadth but as Posner, I will not propose an explicit length and breadth.

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Goergen Stephanie
Patents have a double purpose: they protect R&D investments and they facilitate the diffusion of knowledge and the use of new innovations. Since the disclose of patents gives detailed insight about the innovation, other researchers can indeed benefit from the publication of the patent and even future research can be accelerated by building on existing work. Patents also allow companies…
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Patents have a double purpose: they protect R&D investments and they facilitate the diffusion of knowledge and the use of new innovations. Since the disclose of patents gives detailed insight about the innovation, other researchers can indeed benefit from the publication of the patent and even future research can be accelerated by building on existing work. Patents also allow companies to gain a competitive edge over their competitors by giving them exclusive rights over their innovations. Patents are given for inventions that are of practical use, show an element of novelty and include an inventive step that cannot be deduced by a person working in the same field. While reviewing these criteria might have been easy for something mechanical (which is what patent law originally strove to protect), it is much more difficult in check for software ideas.

The European Patent Office’s therefore restricts patent protection for software providing business process since these types of software are simply composed of algorithms, of math formulas, rearranged in a new way. In these cases, software patenting may actually hinder innovation by not allowing everyone access to them. Furthermore, in the software industry, the development of new software is sequential and mostly depends on preceding work. By setting a high patent fee on software, the patent holder can actually impede future progress. Another point is that patents also can give rise to monopolies. Since August, New Zealand has adopted the same approach as the EPO for software patents. (http://www.torontostandard.com/technology/new-zealand-says-buh-bye-to-software-patents).

For software patents including technical processes, the WTO’s Agreement on Trade-Related aspects of Intellectual Property Rights (TRIPS) has fixed the patent protection length at 20 years. In my opinion, 20 years are far too long for software patents. Even 3 years are a very long time in this highly growth-intensive and dynamic industry. They should be as short as possible and fixed at maximum 2 years in order to promote innovation.

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Diogo Machado
Some innovative software may indeed involve a new inventive technical contribution to the prior art and have a technical character that solves technical problems. Therefore I agree with the EPO position of conceding patents to software solutions that have these characteristics, in opposition to the ones that do not have the potential to cause a further technical effect, as the…
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Some innovative software may indeed involve a new inventive technical contribution to the prior art and have a technical character that solves technical problems. Therefore I agree with the EPO position of conceding patents to software solutions that have these characteristics, in opposition to the ones that do not have the potential to cause a further technical effect, as the ones that just provide a provide business advancement to its users.

If a software is within the first category mentioned above, then, if one believes that patents are a good tool to foster innovation by increasing private returns on R&D, it would then seem illogical not to provide patents, as it would undermine dynamic efficiency of software producers. Besides, if proven to have the same characteristics as products that can be patentable, then it would be unfair, in law terms, not to allow software to be patentable. I believe the proportionality principle in this case should allow for different patent regimes rather than simply forbidding its patentability.

As a result, the question is how to optimally design the patent in order to accommodate to software’s specificities. Following the framework first proposed by Nordhaus (1969), the policy maker can use patent length and patent breadth as substitutes. Therefore, by maximizing welfare in respect to the degree of breadth, if the result is positive, then the optimal patent is broad and short. On the contrary if the result is negative, then it should be narrow and long. According to Belleflamme and Peitz, 2010 pp. 511-512, software’s innovation is sequential, as any new software is built upon previous lines of code, moreover, as there are several interdependencies, software innovations are also complementary. Thus, it is likely that we are in a situation where we need broad and short patents that also favour interoperability.

However, one must keep in mind that these kind of industries present network effects, that may allow the leading firm to end up dominating all the market. So, a patent will make this situation even more likely, rewarding the innovator twice.
Taking all these elements together would lead, in my opinion, to a short patent, but not that broad. This could be done by limiting software patents to their specific way of accomplishing a function and not to function itself, as suggested by Mark Lemley. This would be an incentive for innovators to search for lines of code that would be the “most efficient” ones. This way, competitors would have to pay to use that “most efficient formula” to the patent holder, or imitate it, that would be necessarily more burdensome (e.g. in terms of processing time or bytes…), but still allowing for the completion of a specific function.

Belleflamme,Paul & Peitz,Martin, (2010). “Industrial Organization,” Cambridge Books, Cambridge University Press, number 9780521681599.
Nordhaus, W. (1969). Ivention, Growth and Welfare. Cambridge, MA: MIT Press

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Lukas Kelling
I’m not an expert regarding granting of software patents, but after reading the article I get the impression that the situation in the US is not optimal and the amount of granting by the USPTO should be decreased. Even though the EPO follows a more restrictive policy and only grants software patents to processes solving technical problems rather than providing…
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I’m not an expert regarding granting of software patents, but after reading the article I get the impression that the situation in the US is not optimal and the amount of granting by the USPTO should be decreased. Even though the EPO follows a more restrictive policy and only grants software patents to processes solving technical problems rather than providing a „business service“ using existing computer technologies, I think the level of restriction is still not sufficient.

As for ways how to decrease the amount of granted patent protection, I sympathize with the criteria mentioned in the article.

Regarding the aspect of patent length, I very much agree on the proposition by the Electronic Frontier Foundation. From my point of view, 5 years is a duration that fits the subject matter of nowerdays’ digital technologies, whereas 20 years is not applicable at all – to put this in relation, the internet was opened up for public/scientific use about 20 years ago which resulted in a big increase to the speed of change with respect to the founding/launch and termination of companies and services. Almost everything we would summarize as related to digital technology has been created since, supporting the thesis that companies or services related to digital technology have a much shorter lifespan. To provide another hypothetical example, if Apple had managed to cover every single technical aspect of the iPhone in 2007 and in doing so prevent competitors from creating similiar devices by using wider-breadth patents, there wouldn’t be any kind of competitive smartphones for the next 20 years. More importantly, it would have resulted in a rather big deadweight loss for the consumers, as the smartphone market wouldn’t have grown to its current extent.

Breadth somehow is a more complex issue to face. In his paper, Prof. Lemley proposes to only provide patent protection for processes to achieve a certain goal, rather than the goal itself. In my opinion, this approach would effectively decrease the amount of overlapping patents, but in the same time require the companies to innovate as there is a limited amount of ways to achieve a certain result. However, this would also require the patent offices to execute a more precise analysis of every process’ functionality and sub-steps to achieve their respective goal.

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