1.
PatentBooks, Inc.
1155 Kelly Johnson Boulevard, Suite 400,
Colorado Springs, Colorado 80920 USA
office +1.719.325.5000 fax +1.719.632.5175
www.patentbooksinc.com
Ten
Universal
Principles
Supporting
PatentBooks
By
Art
Nutter,
January
2015
Principles
of
Reason
1. Principle
of
Complete
Explanation
(The
best
solution
is
the
one
that
explains
the
most
data.)
Many
thousands
of
patents
are
incorporated
into
a
commercially
successful
product.
Licensing
all
of
them
should
be
done
to
support
greater
economic
and
social
demands.
However,
licensing
all
these
patents
individually
or
by
the
individual
patent
owner
is
far
too
complicated,
non-­‐uniform,
time-­‐consuming
and
expensive.
Today,
with
the
internet,
language
translations
completed
by
computers,
and
the
example
of
other
necessities
such
as
water
and
electricity
provided
uniformly
to
human
society
via
systems
that
charge
everyone
the
same
price
per
usage
metric,
it
is
time
the
intellectual
property
industry
creates
a
similar
delivery
and
compensation
systems
with
human
ideas.
Licensing
all
the
patents
that
might
be
used
in
a
commercially
significant
product
or
service
can
best
be
done
via
a
simple
routine
online
transaction
based
on
usage,
with
a
uniform
fair
price
for
everyone,
with
the
proceeds
being
divided
among
the
patent
owners
according
to
the
quality
of
their
patents.
2. Principle
of
Non-­‐Contradiction
(Valid
opinions
or
theories
have
no
internal
contradictions.)
Licensing
all
the
patents
at
one
time
and
dividing
the
revenue
among
the
patent
owners
benefits
all
parties
involved.
PatentBook
participation
is
voluntary
for
all
parties,
i.e.
Publishers
and
Subscribers.
Innovators
must
be
free
to
incorporate
as
many
different
patents
as
are
available,
to
increase
consumer
choice
and
product
differentiation.
Innovators
that
Subscribe
to
the
appropriate
PatentBook
must
be
able
to
incorporate
patents
that
may
not
yet
be
Published
in
a
specific
PatentBook,
making
the
reasonable
claim
that
the
innovators
have
made
an
affirmative
attempt
to
license
all
the
pertinent
patents
by
Subscribing
to
the
appropriate
PatentBook.
Patent
owners
receive
compensation
according
to
the
quality
of
their
patents
relative
to
all
the
other
patents
that
are
in
the
PatentBook,
which
is
just
and
true
for
all
inventors
who

2.
PatentBooks, Inc.
Page
2
of
10
have
taken
the
bold
step
of
disclosing
their
invention
to
the
public
via
the
patent
documents.
Commercially
significant
products
and
services
today
use
many
thousands
of
patents.
Current
patent
litigation
and
patent
licensing
focuses
only
on
relatively
few
patents,
conveniently
avoiding
consideration
of
all
the
other
patents
that
might
be
used
in
a
product.
The
complexity
of
considering
all
the
patents
that
might
be
used
in
a
commercially
significant
product
would
simply
overwhelm
the
court
and
license
negotiators.
PatentBook
transactions
are
optimized
to
provide
maximum
value
for
both
ends
of
the
transaction,
i.e.
both
Publishers
and
Subscribers,
providing
true
justice
for
all,
even
in
a
religious
sense.
3. Principle
of
Objective
Evidence
(Non-­‐arbitrary
opinions
or
theories
are
based
on
publicly
verifiable
evidence.)
A
posteriori,
i.e.
sensorial,
evidence
includes
the
ready
evidence
of
thousands
of
patents
used
in
a
commercially
successful
product
or
service.
TAEUS
and
other
technical
investigation
firms
readily
produce
this
evidence
this
via
reverse
engineering
for
patent
litigation
and
licensing.
The
relative
quality
of
the
patents
contained
in
the
product
or
service
can
be
demonstrated
both
via
the
wide
range
of
court
damages
awards
and
a
comprehensive
engineering,
economic,
and
legal
analysis
of
individual
patents
relative
to
one
another.
Only
the
best
patents
are
used
in
litigation,
while
other
patents
are
abandoned
as
being
of
little
or
no
value
at
all.
A
priori
evidence
can
be
demonstrated
via
black
box
testing
of
those
patents
that
cannot
be
directly
observed
as
being
used
in
a
product,
since
no
tangible
evidence
of
the
patent
may
exist
when
the
product
or
service
is
complete
or
delivered,
yet,
there
is
ample
evidence
and
knowledge
that
a
process
patent
was
used
in
the
production
of
the
product
or
delivery
of
a
service.
The
fact
that
there
is
no
a
posteriori
evidence
does
not
negate
a
priori
evidence
of
patent,
therefore
there
should
be
an
opportunity
for
both
patents
to
receive
compensation
via
a
PatentBook.

3.
PatentBooks, Inc.
Page
3
of
10
Principles
of
Ethics
4. Principle
of
Non-­‐maleficence
(Avoid
unnecessary
harm.
If
a
harm
is
unavoidable,
minimize
it.)
This
is
the
Silver
Rule:
Do
not
do
unto
others
what
you
would
not
have
them
do
unto
you.
This
principle
dates
back
over
3000
years,
is
one
of
the
fundamental
precepts
of
all
the
world's
governments
and
religions.
It
is
the
most
fundamental
of
all
principles,
for
if
it
is
not
followed,
then
all
other
principles
fall
apart.
Using
patents
without
paying
the
owners
of
those
patents
harms
both
the
inventors
and
owners
of
patents
because
inventive
and
creative
types
of
people
provide
value
to
the
world
by
allowing
the
world
to
reproduce
their
inventions
by
simply
following
the
enabling
disclosures
found
in
the
publicly
available
patent
document
itself.
Just
like
any
artist,
these
people
must
also
eat,
even
though
they
may
not
produce
a
product
or
service.
True
justice
is
giving
every
person
their
due.
Current
patent
licensing
and
litigation
has
such
high
costs
that
only
wealthy
inventors
and
organizations
can
afford
to
assert
their
patents.
Further,
royalty
stacking
from
many
individual
payments
made
by
an
innovator
to
many
different
patent
owners
harms
the
innovator
by
increasing
costs
to
an
unsustainable
level
and
distracting
the
innovator
from
his
core
competency
of
combining
many
different
inventions
to
create
a
brand
new
uniquely
differentiated
product,
brand,
or
distribution
channel.
Donating
patents
for
public
use
may
be
good
public
relations,
but
deprives
inventors
and
investors
who
then
fail
to
extract
any
direct
compensation
for
their
work.
Patent
aggregators
and
non-­‐practicing
entities
all
impose
large
costs
on
their
investors
and
their
licensees.
Investor’s
money
is
used
to
purchase
patents
as
“assets”
that
are
guaranteed
to
have
zero
value
when
the
patent
expires.
Licensees
and/or
members
of
all
these
companies
pay
huge
sums
of
money
to
license
small
quantities
of
patents
simply
to
avoid
litigation.
In
most
other
circles
this
is
simply
called
extortion.
PatentBooks,
built
as
a
one-­‐stop
patent
portfolio
licensing
platform,
has
no
standing
to
litigate,
and
advocates
against
litigation.
5. The
Principle
of
Consistent
Ends
and
Means
(The
end
does
not
justify
the
means.)
St.
Augustine's
Contra
Mendacium
and
St.
Thomas
Aquinas'
Summa
Theologica
both
articulate
the
same
concept
different
ways.
All
the
world’s
patents
contain
one
thing
in
common:
they
must
contain
an
enabling
disclosure,
i.e.
a
complete
recipe
for
reproducing
the
disclosed
invention.
This
requirement
was
the
basis
for
the
first
patent
system
in
China
some
3000
years
ago.
If
an
inventor
dies
without
fully
disclosing
how
to
reproduce
his
invention,
his

4.
PatentBooks, Inc.
Page
4
of
10
invention
is
lost,
and
is
of
no
use
to
the
public.
The
purpose
of
all
patent
systems
is
to
advance
human
development
by
promoting
and
rewarding
advancements
in
science
and
technology.
Via
a
government-­‐issued
patent,
the
public
grants
the
inventor
rights
and
receives
the
inventor’s
valuable
knowledge
in
return.
Patents
instruct
the
general
public,
specifically
persons
skilled
in
specific
arts
and
sciences,
how
to
reproduce
the
invention.
Patents
serve
the
common
good
by
furthering
knowledge,
making
life
better
for
all
humans.
Innovators
combine
patented
inventions
to
create
useful
new
products
and
services.
Current
legal
education
supporting
patent
licensing
and
litigation
advocates
patents
as
a
right
to
exclude
others
from
using
the
patented
invention.
This
perspective
is
contrary
to
the
underlying
intent
of
a
patent.
Just
as
a
glass
of
water
can
be
both
half-­‐full
and
half-­‐
empty
at
the
same
time,
a
patent
can
also
be
a
right
to
both
exclude
and
include
at
the
same
time.
Inventors
that
have
consciously
decided
to
seek
a
patent
for
their
invention
have
also
consciously
decided
to
educate
the
public
on
how
to
reproduce
their
invention.
If
an
inventor
wanted
to
keep
his
invention
from
being
used
by
the
public,
the
inventor
could
have
kept
his
invention
secret.
Inventors
seek
recognition
and
fair
compensation
for
the
use
of
their
inventions.
When
the
patent
owner
seeks
compensation
from
the
innovator,
the
recourse
of
patent
licensing
and
litigation
asserts
the
one-­‐sided
perspective
that
a
patent
grants
a
right
to
exclude,
rather
than
include.
This
one-­‐sided
perspective
results
in
large
license
fees
or
damages,
creating
an
inconsistent
means
to
the
justice
and
common
good
of
both
providing
compensation
to
the
patent
owner
and
providing
knowledge
to
the
public.
A
solitary
focus
on
a
patent’s
right
to
exclude
also
results
in
the
very
undesirable
effect
of
discouraging
the
study
of
patented
inventions
as
a
means
of
improving
products
and
services
and
advancing
science
and
technology.
The
alternate
perspective
of
a
patent
creating
a
right
to
include
others
in
the
use
of
the
patented
invention
succeeds
in
advancing
science
and
technology,
which
allows
the
public
to
use
patented
inventions
to
create
useful
new
products
and
services.
Due
to
the
complexity
of
today’s
useful
product
and
services
that
use
tens
of
thousands
of
patented
inventions,
and
the
massive
volume
of
inventions
now
being
disclosed
to
the
public
via
patents,
a
simplified
easy
system
of
paying
for
the
use
of
patents
that
emphasizes
the
right
to
include,
rather
than
exclude,
is
imperative.
PatentBooks
voluntarily
encourage
Subscribers
to
use
of
any
or
all
of
the
patents
contained
within
that
PatentBook
domain,
both
published
and
unpublished,
for
a
single
reasonable
price
per
volume
of
usage,
which
is
consistent
with
the
original
goal
of
patents.
PatentBooks

5.
PatentBooks, Inc.
Page
5
of
10
offer
all
Publishers
a
voluntary,
easy,
reasonable
path
for
receiving
recognition
and
fair
compensation
for
their
patented
invention.
PatentBooks
are
only
possible
today,
at
this
unique
point
in
history,
now
that
the
internet
is
ubiquitous,
manufacturing
is
global,
and
patented
inventions
can
be
read
and
understood
via
machine
translation
of
inventions
disclosed
in
different
languages.
6.
The
Principle
of
Full
Human
Development
(Every
human
being
deserves
to
be
valued
according
to
the
full
level
of
human
development,
not
according
to
the
level
of
development
currently
achieved.)
This
principle
was
first
articulated
by
Dominican
Friar
Bartolome
de
las
Casas
when
defending
Indians
in
the
New
World
from
massacre
by
Spaniards,
as
Sepulveda
was
advocating
by
saying
that
Indians
were
not
as
technologically
or
culturally
advanced
as
Europeans.
This
principle
must
apply
to
support
the
Principle
of
Non-­‐maleficence,
by
saying
that
patent
users
that
are
not
paying
for
using
patents
must
be
stopped
via
litigation,
or
that
these
patent
users
must
be
charged
exorbitant
fees
for
the
use
of
a
handful
of
patents,
when
tens
of
thousands
of
patents
are
used
in
a
product
or
service
and
most
are
not
being
compensated.
Today
accusations
fly
about
Asian
copies,
and
the
lack
of
Asian
innovation,
when
in
reality
all
human
development
and
education
is
derived
by
copying
the
best
ideas
and
inventions
of
others.
A
famous
quote,
attributable
to
both
the
12th
century
theologian
and
author
John
of
Salisbury
and
Isaac
Newton
in
the
17th
century
is,
“If
I
see
farther
than
others,
it
is
because
I
stand
on
the
shoulders
of
Giants."
Asian
people,
Asian
companies
and
their
products
are
just
as
valuable
as
their
global
counterparts.
At
any
given
time
or
in
any
given
technological
field
they
may
be
more
or
less
advanced
than
their
Western
counterparts.
This
is
an
accident
of
timing
more
than
anything.
In
fact,
in
the
1700s
and
for
most
of
the
1800s,
the
United
States
copied
European
technology
to
more
rapidly
advance
the
US
economy.
Given
the
limitations
of
communication
and
financial
technology
available
at
that
time,
no
payment
or
enforcement
capability
existed.
PatentBooks
neutralizes
this
negative
bias
by
charging
a
uniform
fee
for
the
use
of
all
patents
in
a
PatentBook,
regardless
of
the
nationality
of
the
user.
This
statement
must
be
distinguished
from
the
the
national
right
granted
by
the
nation
granting
the
patent.
PatentBooks
and
today's
technologies
strongly
suggest
the
abolition
of
national
patents
in
favor
of
a
single
global
patent
system,
now
that
ideas,
inventions,
and
payments
can
be
transferred
so
easily
around
the
globe
via
the
Internet.

6.
PatentBooks, Inc.
Page
6
of
10
Principles
of
Justice
and
Natural
Rights
7. The
Principle
of
Natural
Rights
(All
human
beings
possess
in
themselves
by
their
existence
alone
the
inalienable
rights
of
life,
liberty
and
property
ownership;
no
government
gives
these
rights
and
no
government
can
take
them
away.)
Justice
is
the
foundation
of
all
governments
and
the
laws,
dating
back
to
Plato's
concept
of
giving
everyone
their
due.
In
1610,
Jesuit
Francisco
Suarez
wrote
in
his
"On
The
Laws"
about
property
ownership
by
human
individuals
should
be
compensated.
This
logic
applies
to
intangible
intellectual
property
just
a
freely
as
it
does
to
tangible
property.
Owners
of
both
should
be
compensated
for
their
use
by
the
users.
If
the
cost
of
obtaining
compensation
is
so
high
that
compensation
is
out
of
reach
for
most,
i.e.
via
patent
litigation,
then
there
is
no
opportunity
for
most
patent
owners
to
receive
compensation
for
the
use
of
their
intellectual
property.
The
PatentBook
eliminates
the
high
cost
of
receiving
compensation
for
patent
usage
by
allowing
patent
owners
to
publish
their
patents
for
free.
All
patents
published
to
the
PatentBook
receive
compensation.
Differential
compensation
is
available
to
those
owners
who
can
demonstrate,
via
uniform
quality
metrics
provided
for
free
via
TAEUSworks,
that
their
patent
is
better
than
others.
The
parties
paying
for
the
use
of
the
patents
all
pay
the
same
set
fee
regardless
of
how
many
or
the
mix
of
patents
used.
Recall
that
all
inventions
consist
of
unique
combinations
of
previously
knows
elements.
Discovery
of
these
new
combinations
are
not
concentrated
in
any
geographies,
since
intelligent
people
are
found
all
over
the
globe.
8. The
Principle
of
Fundamentality
of
Rights
(The
more
fundamental
right
is
that
which
is
necessary
for
the
possibility
of
the
other;
where
there
is
a
conflict
we
should
resolve
in
favor
of
the
more
fundamental
right.)
The
Fundamentality
of
Rights
Principle
requires
the
most
change
from
current
patent
licensing
practices.
Patents
are
a
societal
compact
between
an
inventor
and
the
public
intended
to
accelerate
human
technological
and
economic
development.
The
public
gains
access
to
an
inventor's
invention
via
the
inventor's
full
disclosure
of
how
to
reproduce
the
invention
in
a
patent
document.
In
exchange
for
this
full
disclosure,
today
the
public
grants
the
inventor
sole
ownership
of
that
invention
for
20
years.
During
the
20-­‐year
life
of
the
patent,
patent
owners
enjoy
a
fundamental
property
right
by
controlling
who
can
access
the
patent,
i.e.
who
can
use
the
patent
and
who
can
be
excluded

7.
PatentBooks, Inc.
Page
7
of
10
from
using
the
patent.
Since
a
patent
contains
a
full
public
disclosure
of
the
invention,
the
public
is
actually
encouraged
to
read,
understand,
and
actually
reproduce
the
invention.
Smart
people
can
be
found
all
over
the
world.
With
the
advent
of
a
global
internet
and
instant
machine
translations
of
languages,
solutions
to
technical
problems
can
be
accessed
instantly.
Good
ideas
will
always
be
copied,
regardless
of
where
the
idea
originated.
Today,
the
world's
law
schools
teach
that
a
patent
is
a
negative
right,
meaning
that
the
patent
grants
the
investor
a
right
to
exclude
others
from
using
the
patented
invention.
Law
school
instruction
emphasizing
only
the
right
to
exclude
conflicts
with
the
fundamental
underlying
premise
of
a
patent,
i.e.,
the
publicly
available
teaching
value
of
the
recipe
for
reproducing
the
invention.
If
an
inventor
truly
wanted
to
exclude
others
from
accessing
his
invention,
the
inventor
could
have
secured
the
invention
as
a
trade
secret.
If
a
patent
somehow
concealed
inventions
from
the
public,
excluding
others
from
using
a
patent
might
make
sense.
By
patenting
his
invention,
the
inventor
consciously
and
irretrievably
reveals
to
the
public
the
recipe
behind
his
invention,
and
explicitly
invites
the
public
to
try
the
patented
recipe.
Since
the
inventor
owns
the
invention
for
20
years,
he
is
entitled
to
fair,
just
compensation
for
the
use
of
the
patent.
PatentBooks
provide
the
inventor
an
easy,
free
online
mechanism
to
allow
others
to
pay
for
the
use
of
his
patented
invention
by
publishing
his
patents
to
PatentBooks.
An
inventor
knows
he
will
be
compensated
fairly
as
a
function
of
the
quality
of
his
patent
in
the
context
of
all
the
other
patents
that
may
be
used
to
create
a
commercially
successful
product
or
service
covered
by
PatentBooks.
Most
innovators
are
honest,
and
want
to
employ
the
smartest
people
they
can
find.
When
smart
people
work
together,
they
combine
ideas
to
create
new
solutions
to
problems.
The
origin
of
contributed
ideas
is
virtually
impossible
to
track,
save
for
documented
evidence
of
the
origin
of
an
idea
via
a
patent.
A
utilities
metaphor
is
highly
appropriate
here.
Human
society
decided
long
ago
that
clean
water
and
electricity
are
essential
to
human
development.
To
deliver
electricity
and
clean
water
to
large
concentrations
of
people,
water
and
electric
utility
companies
were
created.
When
a
new
home
or
factory
is
built,
it
is
connected
to
the
grid
for
access
to
clean
water
and
electricity.
The
users
of
the
clean
water
and
electricity
delivered
by
the
utility
company
have
no
idea
where
the
water
and
electricity
originated.
The
users
do
not
care.
Users
simply
pay
for
their
metered
consumption
via
a
simple
property
transaction.
Nothing
is
more
fundamental
to
human
development
than
the
use
of
ideas.

8.
PatentBooks, Inc.
Page
8
of
10
The
owner
of
a
company
or
factory
also
employs
smart
people.
He
has
no
idea
where
his
employees’
ideas
originate,
yet
he
wants
those
ideas
to
be
many
and
innovative.
Most
companies
are
honest,
and
are
willing
to
pay
for
its
use
of
ideas
if
the
payment
system
has
easy,
uniform,
and
fair.
PatentBooks
deliver
this
system.
In
the
patent
world
today,
patent
owners
must
chase
down
users
of
their
patents
to
negotiate
payments
individually.
This
is
equivalent
to
the
owner
of
a
well
or
solar
panel
knocking
on
the
door
of
a
residence
or
factory
and
demanding
payment
for
the
consumption
of
a
volume
of
water
or
electricity
consumed
by
the
factory
or
residence
and
delivered
via
the
utility
company.
Although
this
may
seem
absurd,
this
is
exactly
what
happens
in
the
world
of
intellectual
property.
Individual
patent
owners
chase
innovators
and
expect
them
to
pay
for
using
their
patents,
threatening
to
exclude
the
innovators
from
using
their
patents.
This
is
exactly
opposite
of
what
the
Fundamentality
of
Rights
principle
indicates.
The
simpler,
more
logical
solution
is
to
employ
a
metered
payments
mechanism
for
the
use
of
nearly
unlimited
quantities
of
patents.
The
meter
best
measures
units
of
commercial
transactions
and
charges
innovators
a
reasonable
rate
per
use,
i.e.,
a
royalty.
PatentBooks
provide
a
metered
means
of
allowing
specific
groups
of
patented
inventions
to
be
paid
for
by
the
users
of
patented
inventions
subscribing
to
the
PatentBook
by
measuring
units
of
production
or
value
of
transactions
and
dividing
the
funds
paid
to
the
patent
owners
according
to
the
quality
of
the
patents
published
to
the
PatentBook.
PatentBooks
provide
complete
freedom
to
operate
to
innovators
and
fair
compensation
to
patent
owners
for
the
lowest
possible
cost,
allowing
the
commercial
transactions
supporting
the
basic
property
rights
granted
by
patents
to
logically
support
the
Fundamentality
of
Rights
Principle.
9. The
Principal
of
Limits
to
Freedom
(One
person's
or
group's
freedoms
cannot
impose
undue
burdens
on
other
persons
or
groups.)
A
patent
owner
is
granted
sole
property
rights
for
20
years
by
a
national
government
to
an
invention
that
is
disclosed
to
the
public.
Communication
technologies
today
allow
innovators
with
access
to
a
computer
and
the
internet
to
learn
about
all
patented
inventions.
Innovators
may
incorporate
elements
of
or
complete
patents
into
their
products
or
services
for
their
own
or
other
people's
benefit.
The
complexity
of
products
and
services
used
today
can
be
easily
shown
to
use
tens
of
thousands
of
patents.
A
patent
owner
threatening
to
withhold
permission
for
an
innovator
to
use
a
small
number
of
patented
inventions

9.
PatentBooks, Inc.
Page
9
of
10
incorporated
into
a
useful
popular
product
or
service
that
contains
tens
of
thousands
of
patented
inventions
imposes
a
serious
undue
burden
on
both
the
innovator,
who
is
willing
to
pay
for
the
use
of
the
tens
of
thousands
of
patents
via
a
singular
transaction
that
enables
fair
payment
to
all
patent
owners,
and
to
all
the
public
users
of
the
innovator's
useful
popular
product
or
service.
Although
a
patent
grants
exclusive
rights
to
the
inventor,
fair
compensation
to
the
inventor
for
the
use
of
his
invention
is
appropriate.
PatentBooks
provide
social
justice,
balancing
the
two
sides
of
the
value
equation,
with
innovators
and
the
public
on
one
side
and
patent
owners
on
the
other
side.

10.
PatentBooks, Inc.
Page
10
of
10
The
Fundamental
Principle
of
Identity
and
Culture
10. The
Principle
of
Beneficence
(Aim
at
optimal
contribution
to
others
and
society)
This
is
most
often
referred
to
as
the
Golden
Rule:
Do
unto
others
as
you
would
have
them
do
unto
you.
Patent
owners
want
to
have
their
inventions
used
by
others
and
to
receive
fair
compensation
for
their
use.
Patent
users
want
to
use
patents
owned
by
others
and
want
to
pay
for
them
as
well.
Given
the
large
quantities
of
patents
used
in
today's
commercially
successful
products
and
services,
there
is
simply
no
possible
way
for
even
the
most
honest
patent
user
to
easily
pay
for
the
use
of
all
the
patents
used
in
his
product
or
service.
Conventional
patent
licensing
techniques
provide
only
extremely
high
cost
and
societally
destructive
methods
for
patent
owners
to
receive
payments
for
the
use
of
their
patents.
PatentBooks
provide
patent
owners
with
a
voluntary,
free,
no-­‐risk
vehicle
for
fair
compensation
for
the
use
of
their
patents
while
providing
patent
users
a
voluntary
vehicle
to
access
all
the
worlds
best
inventions
and
maintain
freedom
to
operate
for
a
fair,
reasonable
price.