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In the fast-evolving realm of technology, the patent system faces critical challenges ranging from increased litigation to a backlog exacerbated by the dot-com fallout. Small innovators grapple with the need for flexible business models and leverage from larger partners to compete. They rely on intellectual property (IP) to enhance attractiveness, security, and profitability. This discussion delves into the perception of software patents, the myths surrounding innovation, and the necessity for patent reform to create a predictable and accessible environment for small and medium enterprises (SMEs).
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Patents and Innovation Association for Competitive Technology Jonathan Zuck March 2006
The Patent Problem • More Quantity, Less Quality • Increase in litigation • “Dot Com Bomb” Fallout Still Evident • Backlog • Bad name for “software”
vs Innovators Producers
Innovation Business • Risk capital • Market creation • Returns from Licensing not Labor
Small Innovators • Venture Capital • Partnerships with larger firms • Need leverage • Need business model flexibility • No “net” – Returns are “do or die”
IP to the Small Innovator • IP Makes me Attractive • IP Makes me Safe • IP Makes me Profitable
FreeSoftware Innovators & Producers Research Applied App Dev App Emulation Duplication Innovation Production
Shopping Cart Progress Bar Blueprints Recipe Schematic Spec What People Are Saying Compression, Encryption, Facial & Voice Recognition, Clustering Non-Obvious Technical Contribution Quality New Tangibility of Implementation Mechanical Pharmaceutical Software Driven Software
Patent Reform • SMEs Need Predictability and Accessibility • Improved Pre-grant Process • Better searching • Better examination - $$ • More Comprehensive “prior art” • Improved Post-grant Process • Opposition Process • Litigation and Court Reform
Questions What is software? What is innovative?