Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Housing News

Why the current patent system is a problem

Patents weigh down innovation

We have long reported on how frivolous patent lawsuits not only clog up the legal system, but are a means of stifling innovation in the name of self interest and money. The system is flawed in a way that allows for patent trolling which is where a company applies for and is granted a patent so broad that they can sue dozens if not hundreds of companies for infringement, meanwhile, they are not actively using the patent, rather paid for it so they could sue.

Dallas Maverick owner and the owner of various technology companies, Mark Cuban has long advocated for innovation. He has railed against various threats to technology and innovation and has a keen eye for politics. Cuban aired his belief that if patent laws changed, more jobs would be created. Cuban said, “Sometimes it’s not the obvious things that create the biggest problems. In this case one of the hidden job killers in our economy today is the explosion of patent litigation.”

“I’m not talking about a new company that had an idea that someone beat us to,” Cuban added. “No sir. I’m talking about companies that have been doing business the same way for years that are getting hit by patent trolls . These aren’t operating companies that are trying to protect their business. These are companies that aggregate patents and raise capital for the sole purpose of suing companies and extorting money from them.”

Patent reform

Not all patent lawsuits are trolling, of course, and a unique idea should be protected if a company chooses to protect it, but our current system is not set up to protect intellectual property and it is outdated. Last fall, President Obama signed the “America Invests Act”. According to the National Association of Realtors, the Act is divided into three parts, “First, it aims to keep the U.S. patent system attractive to global companies by aligning its processes with other countries’ processes. Second, it tries to align funding for the U.S. Patent Office with its needs by modifying its fee system. And third, it aims to raise the bar on the quality of the patents so only the most appropriate patent infringement lawsuits are filed.” Click here to read the full Act.

Advertisement. Scroll to continue reading.

Some believe this does not go far enough, and others are unsure whether or not the Act will be enacted or actually reform the patent system.

Below is an important infographic detailing why reform is necessary in the name of innovation:

Written By

Marti Trewe reports on business and technology news, chasing his passion for helping entrepreneurs and small businesses to stay well informed in the fast paced 140-character world. Marti rarely sleeps and thrives on reader news tips, especially about startups and big moves in leadership.

13 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Business News

(BUSINESS) The former CEO of Highrise used a fake website to weed out toxic clients. How can you keep problematic customers out of your...

Business Entrepreneur

(ENTREPRENEUR) Acquiring a business can be a key part of future growth, but there are some factors you should consider before signing the deal.

Opinion Editorials

(EDITORIAL) How can you know who your true business friends are? In the cutthroat world of business, can you even have colleagues that you...

Business Marketing

(MARKETING) If you're a business owner and want to learn something...anything...give one (or all) these podcasts a listen.

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.