Posts Tagged: "monopoly"

Civil Debate is a Fair Request, But False Narratives are Harming U.S. Innovation

Yesterday, we published a response from Daniel Takash, the Regulatory Policy Fellow at the Niskanen Center’s Captured Economy Project, asking for a more civil IP debate. The response was itself responding to Lydia Malone’s critical view of the R Street panel on Capitol Hill that she attended, and which she felt took the position that patents are too strong. I, too, wrote an article in advance of the R Street presentation where I was highly critical of the motivations of R Street. Mr. Takash suggests “[w]e should all do our best to live by Antonin Scalia’s maxim to ‘attack arguments, not people.’” That is perfectly reasonable. It is, however, also perfectly reasonable to question the motivations of those who are making claims that are unquestionably false. To be quite direct about it, the R Street supposition that patents are too strong is pure fantasy of the first order. Anyone with even fleeting familiarity with the subject matter who has at all been paying attention to the demise of the U.S. patent system over the last 12+ years knows that U.S. patents are not too strong. U.S. patents are too weak. So weak that for the first time in a decade the number of U.S. patent applications has decreased while patent applications worldwide surged forward by more than 5% during 2018. Moreover, U.S. applicants are not foregoing patent protection, they just aren’t filing as much in the United States. Indeed, U.S. applicants continue to be the hungriest for patents worldwide.

Startups with Patents are the Ultimate Anti-Monopoly

Patents are often referred to as monopolies. But that is a fundamental misunderstanding of how patents work to enhance competition. The truth is that a patent is a natural anti-monopoly. In a functioning patent system, inventions become investible assets when they are patented, and the value of the invention increases as market demand increases. Because of the direct relationship between market demand and patent value, a patented invention can attract enough investment to compete with entrenched incumbents in the market for the invention. This effect introduces new competitors into the market who are protected against incumbents for a long enough period that they can survive after the patent expires. Thus, patents act to increase competition by introducing new competitors into the market and thereby create competitive markets. But perhaps even more important, some inventions deliver a strong dose of creative destruction to monopolistic incumbents who did not innovate fast enough, causing those companies to fail and clearing the market of dead weight, thus opening the market to innovative new companies. Patents are the ultimate anti-monopoly in a free market. But for this to work, the market must function undisturbed by crony laws and regulations. A patent must be a presumed valid “exclusive Right.”

The Most Iconic (and Patented) Toys and Games of All Time

Since America’s earliest days, a lot of creative and innovative toys have come through the consumer marketplace. Many becoming so iconic they have become household names and synonymous with a moment in time for America’s youth. Some of the most popular of these toys that continue to show up year after year under Christmas trees were patented… It wouldn’t be a traditional Christmas at IPWatchdog unless we spent some time profiling some cool innovations that relate to the holiday season. So today, I return to one of our all time favorite articles. Five years ago we published The Top 10 Most Iconic (and Patented) Toys and last year we published The Most Iconic (and Patented) Games. With Christmas firmly in mind, it is time to revisit and expand these lists. When initially published some truly iconic classic toys and games were inexplicably left missing. So, with the hours winding down before Santa Claus makes his way down chimneys across the world, join us as we look back at some of the most popular toys and games of all time, as well as the patents behind them.

Lessons from Monopoly® and the First Millionaire Game Inventor

Darrow became the first millionaire game inventor, thanks to royalty payments. The irony, however, is that Darrow may not have invented the game at all, but rather he may have taken a locally popular game and made only a few changes. By the time Parker Brothers realized that Darrow may not have been the true inventor the game was already a huge success. In order to protect the game and its investment the decision was made to buy up all patents and copyrights on any related game, thereby ensuring the monopoly on Monopoly®. Thus, the story of Monopoly® provides inspiration to inventors who at first are told no, and for companies who acquire intellectual property rights.

Is the Supreme Court anti-patent?

Is the Supreme Court anti-patent? it has been suggested to me that such rhetoric, whether true or not, is unhelpful and puts those urging pro-patent views on the defensive. If that is correct then it should be banned from our lexicon. But I still wonder how one can or should refer to Justices who repeatedly vote against the patent owner? Certainly, the Supreme Court is not pro-patent, and they are certainly showing no signs of being self-aware when it comes to the path of destruction they have cut through critical sectors of the American high-tech economy. But I guess that doesn’t make them anti-patent, or at least you can’t call them anti-patent because that is rude, or off putting, or offensive to those who hold the Court in high esteem.