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Patents
or
open source
Think!
Patent
Temporary
monopoly
On any inventions, in all
fields of technology that are
new, inventive and
industrially applicable
New: never
disclosed
anywhere in the
world
Inventive: not
obvious for
skilled man
Industrial applicable: can
be made or used in any
kind of industry,
including agriculture
Excluded as invention:
a) discoveries, scientific theories and
mathematical methods;
b) aesthetic creations;
c) schemes, r...
Exceptions to patentability
a) Inventions contrary to “ordre public” or
morality
b) plant or animal varieties;
c) Methods ...
97% of
inventions is
junk
Arguments
against patents
Patents hinder
innovation
Patents destroy
wealth
Small innovators
are forced out off
the market
Big tech misuses
patents to kill small
tech
Patents are
granted for
anything
Patents suffocate
competition
Patents are on
the expense of
consumer
Data tells us
more
Do patents hinder
innovation?
1931
0%
20%
40%
60%
80%
100%
1930 1940 1950 1960 1970 1980
USA television sets
1781
0
50000
100000
150000
200000
250000
300000
350000
1750 1800 1850 1900 1950 2000
Steam engines in the USA
and S-curve fit
0
100
200
300
400
500
600
1960 1970 1980 1990 2000 2010 2020 2030
Globally installed capacity of
photovoltaic cells [GWp]
Last 10 Years, some
5000 patents have
been filed on solar
cells
0
2000
4000
6000
8000
10000
12000
14000
16000
1960 1980 2000 2020 2040
Predicted global electrical power consumption and t...
Patents do not
hinder innovation
Do patents
destroy wealth?
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
0 50000 100000 150000 200000 250000 300000 350000
GDP/capY200...
0
5000
10000
15000
20000
25000
30000
35000
40000
0 10000 20000 30000 40000 50000 60000 70000
GDP/capY2005ppp$
Granted pant...
A positive correlation
exists between wealth
and patents numbers
2000
2500
3000
3500
4000
4500
5000
5500
6000
6500
7000
1855 1865 1875 1885 1895 1905 1915 1925
2005US$GDP/cap
Year
GDP/cap...
In the Dutch patent free era, the
Netherlands became from leading
in wealth to lagging in wealth,
compared to its neighbor...
0
20
40
60
80
100
120
140
1500 1600 1700 1800
NL patents per decade
Zaagmolen
1593
0
20
40
60
80
100
120
140
1500 1600 1700 1800
NL patents per decade
Indexed
purchasing
power soap
Source: The prices of th...
0
20
40
60
80
100
120
140
1500 1600 1700 1800
NL patents per decade
Indexed
purchasing
power peat
Source: The prices of th...
0
20
40
60
80
100
120
140
1500 1600 1700 1800
NL patents per decade
Indexed
purchasing
power
pepper
Source: The prices of ...
The absence of
patents appear to
destroy wealth
Are small innovators
forced out off the
market?
No
0
50000
100000
150000
200000
250000
1980 1985 1990 1995 2000 2005 2010 2015 2020
By using patents, small
innovators can survive,
sometimes with a legal
fight.
Does big tech misuse
patents to kill small
tech?
With the aid of a patent troll,
the inventor could reclaim his
IP and sell it for a decent
price.
People pay
6-10 €ct more, for
less beschuit
Because of his patent,
the inventor could raise
license fees
Big tech patents are
150 times more
valuable than small
tech patents
In EU, non uses clauses
prevents abuse, in USA
there is no such relief
system
Non usus: if you don’t practise the
invention within 3 years after grant,
you cant stop others anymore, a
license is oblig...
NPE’s sitting on their rights doing
nothing are not possible in EU,
contrary thereto, in the USA they
can (and do sometime...
Are patents
granted for
anything?
In the Netherlands
they are (since
1995)
66% of USA applications
gets granted
50% of EPO applications
gets granted
Patents are not
granted for
anything
Do patents
suffocate
competition?
SEP’s are pooled,
licenses are given out
under FRAND
conditions
SISVEL HOLDS POOLS ON a.o.:
LTE, LTE-A, Wi-Fi,
Wireless, MPEG-a, DVB-T, DVB-
T2, WSS, DECT, DSL, 802.11 n,
802.11 ac (WLAN...
Licenses are given
out at fixed prices
per device in
contingents
IP holders are a.o.
Phillips, Samsung,
Nokia, KPN, TDF,
Orange
SISVEL aggressively
attacks infringers
Paying license fees
avoids problems
patents can suffocate
competition if
infringed without paid
license fees
Are patents on
the expense of
consumer?
0
10
20
30
40
50
60
70
80
90
1970 1980 1990 2000 2010 2020
Price of Si PV cell in $/Wp
0
1
2
3
4
5
2000 2005 2010 2015 202...
Patents are on the
expense of the
consumer, if he
chooses to buy the
underlying
technology
Patents
or open source
Is at the choice
of the innovator
Discarding the
entire patent
system, is a bad
idea, for all of us
Patents or open source, are patents good for us?
Patents or open source, are patents good for us?
Patents or open source, are patents good for us?
Patents or open source, are patents good for us?
Patents or open source, are patents good for us?
Patents or open source, are patents good for us?
Patents or open source, are patents good for us?
Patents or open source, are patents good for us?
Patents or open source, are patents good for us?
Patents or open source, are patents good for us?
Patents or open source, are patents good for us?
Patents or open source, are patents good for us?
Patents or open source, are patents good for us?
Patents or open source, are patents good for us?
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Patents or open source, are patents good for us?

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This presentation was given on May 21, 2015 at the TKKR lab Enschede.

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Patents or open source, are patents good for us?

  1. 1. Patents or open source
  2. 2. Think!
  3. 3. Patent
  4. 4. Temporary monopoly
  5. 5. On any inventions, in all fields of technology that are new, inventive and industrially applicable
  6. 6. New: never disclosed anywhere in the world
  7. 7. Inventive: not obvious for skilled man
  8. 8. Industrial applicable: can be made or used in any kind of industry, including agriculture
  9. 9. Excluded as invention: a) discoveries, scientific theories and mathematical methods; b) aesthetic creations; c) schemes, rules and methods for performing mental acts, playing games or doing business, and programs for computers; d) presentation of information.
  10. 10. Exceptions to patentability a) Inventions contrary to “ordre public” or morality b) plant or animal varieties; c) Methods for the treatment of the human or animal by surgery or therapy and diagnostic methods practised on the human or animal body.
  11. 11. 97% of inventions is junk
  12. 12. Arguments against patents
  13. 13. Patents hinder innovation
  14. 14. Patents destroy wealth
  15. 15. Small innovators are forced out off the market
  16. 16. Big tech misuses patents to kill small tech
  17. 17. Patents are granted for anything
  18. 18. Patents suffocate competition
  19. 19. Patents are on the expense of consumer
  20. 20. Data tells us more
  21. 21. Do patents hinder innovation?
  22. 22. 1931
  23. 23. 0% 20% 40% 60% 80% 100% 1930 1940 1950 1960 1970 1980 USA television sets
  24. 24. 1781
  25. 25. 0 50000 100000 150000 200000 250000 300000 350000 1750 1800 1850 1900 1950 2000 Steam engines in the USA and S-curve fit
  26. 26. 0 100 200 300 400 500 600 1960 1970 1980 1990 2000 2010 2020 2030 Globally installed capacity of photovoltaic cells [GWp]
  27. 27. Last 10 Years, some 5000 patents have been filed on solar cells
  28. 28. 0 2000 4000 6000 8000 10000 12000 14000 16000 1960 1980 2000 2020 2040 Predicted global electrical power consumption and the installed PV capacity 3,3% Global Electricity consumption [GW] PV production [GW 2024
  29. 29. Patents do not hinder innovation
  30. 30. Do patents destroy wealth?
  31. 31. 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000 0 50000 100000 150000 200000 250000 300000 350000 GDP/capY2005ppp$ Granted patents USA Patents versus wealth 1800 2014 Source: www.gapminder.org
  32. 32. 0 5000 10000 15000 20000 25000 30000 35000 40000 0 10000 20000 30000 40000 50000 60000 70000 GDP/capY2005ppp$ Granted pantents NL Patents versus wealth 2014 1800 Source: www.gapminder.org
  33. 33. A positive correlation exists between wealth and patents numbers
  34. 34. 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000 1855 1865 1875 1885 1895 1905 1915 1925 2005US$GDP/cap Year GDP/cap in 2005 US$ PPP Belgium The Netherlands Germany Source: www.gapminder.org Patent free era in NL
  35. 35. In the Dutch patent free era, the Netherlands became from leading in wealth to lagging in wealth, compared to its neighbors whilst they maintained their patent systems
  36. 36. 0 20 40 60 80 100 120 140 1500 1600 1700 1800 NL patents per decade Zaagmolen 1593
  37. 37. 0 20 40 60 80 100 120 140 1500 1600 1700 1800 NL patents per decade Indexed purchasing power soap Source: The prices of the most important consumer goods, and indices of wages and the cost of living in the western part of the Netherlands, 1450-1800, J. Luiten van Zanden
  38. 38. 0 20 40 60 80 100 120 140 1500 1600 1700 1800 NL patents per decade Indexed purchasing power peat Source: The prices of the most important consumer goods, and indices of wages and the cost of living in the western part of the Netherlands, 1450-1800, J. Luiten van Zanden
  39. 39. 0 20 40 60 80 100 120 140 1500 1600 1700 1800 NL patents per decade Indexed purchasing power pepper Source: The prices of the most important consumer goods, and indices of wages and the cost of living in the western part of the Netherlands, 1450-1800, J. Luiten van Zanden
  40. 40. The absence of patents appear to destroy wealth
  41. 41. Are small innovators forced out off the market?
  42. 42. No
  43. 43. 0 50000 100000 150000 200000 250000 1980 1985 1990 1995 2000 2005 2010 2015 2020
  44. 44. By using patents, small innovators can survive, sometimes with a legal fight.
  45. 45. Does big tech misuse patents to kill small tech?
  46. 46. With the aid of a patent troll, the inventor could reclaim his IP and sell it for a decent price.
  47. 47. People pay 6-10 €ct more, for less beschuit
  48. 48. Because of his patent, the inventor could raise license fees
  49. 49. Big tech patents are 150 times more valuable than small tech patents
  50. 50. In EU, non uses clauses prevents abuse, in USA there is no such relief system
  51. 51. Non usus: if you don’t practise the invention within 3 years after grant, you cant stop others anymore, a license is obligatory by law (Article 57(2) ROW)
  52. 52. NPE’s sitting on their rights doing nothing are not possible in EU, contrary thereto, in the USA they can (and do sometimes)
  53. 53. Are patents granted for anything?
  54. 54. In the Netherlands they are (since 1995)
  55. 55. 66% of USA applications gets granted
  56. 56. 50% of EPO applications gets granted
  57. 57. Patents are not granted for anything
  58. 58. Do patents suffocate competition?
  59. 59. SEP’s are pooled, licenses are given out under FRAND conditions
  60. 60. SISVEL HOLDS POOLS ON a.o.: LTE, LTE-A, Wi-Fi, Wireless, MPEG-a, DVB-T, DVB- T2, WSS, DECT, DSL, 802.11 n, 802.11 ac (WLAN MIMO)
  61. 61. Licenses are given out at fixed prices per device in contingents
  62. 62. IP holders are a.o. Phillips, Samsung, Nokia, KPN, TDF, Orange
  63. 63. SISVEL aggressively attacks infringers
  64. 64. Paying license fees avoids problems
  65. 65. patents can suffocate competition if infringed without paid license fees
  66. 66. Are patents on the expense of consumer?
  67. 67. 0 10 20 30 40 50 60 70 80 90 1970 1980 1990 2000 2010 2020 Price of Si PV cell in $/Wp 0 1 2 3 4 5 2000 2005 2010 2015 2020 36$ct 80$
  68. 68. Patents are on the expense of the consumer, if he chooses to buy the underlying technology
  69. 69. Patents or open source
  70. 70. Is at the choice of the innovator
  71. 71. Discarding the entire patent system, is a bad idea, for all of us

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