AFTER EDIT TO REPLY TO A QUESTION:
I was asked for a written account of transnational comparisons of intellectual property law and its effect on innovation. Here is one.
http://www.cambridge.org/us/academic/subjects/law/intellectu...
I have to go to a conference today for work, but perhaps other participants will join in with other comments on the international legal comparison issue. I have lived in two countries (the United States and Taiwan), and I lived in Taiwan before and after it developed intellectual property law enforcement, and it is plain to me that intellectual property rights encourage innovation (as contrasted with mere copying).
2. You can be first to market by developing it secretly, perhaps collaborating with a larger company in exchange for royalties. That may not earn you as much money as a patent-monopoly, but that's fine.
In any case, if I independently invent something I should have full rights to pursue it however I want. That someone else 'thought of it first' is unrelated to my inventing it. That's the free world I wanna live in.
These inventions are built on our shared knowledge. Nobody deserves a patent for it. Inventors will invent anyway.
That said, I'm not completely sold on whether patents are entirely useless. Certain types of invention seem to fit the model better than others.
Then again, I've heard of instances where patents, or something similar, could help innovation. One example is the business poaching I've heard of here, where someone starts exploring an idea as a service, only to shortly thereafter have a separate services company run with the idea, and put out a better executed version quicker than the originator because of more capital. At first glance that seems unfair to the originator but better for society, but if enough people think it's not worth entering the market because they'll be scooped, we all lose out on those ideas.
I don't have a solution, and I don't think the answer is simple.
There is a "little" difference, however, between these patent trolls and the guy tinkering sprinklers in his basement.
Obviously you can't trade secret law in a variety of contexts, but if you're making something physical and can hide the secret details inside a factory....
(Of course, I'm not talking about software patents, which are entirely bogus ... although many encryption patents seem to have a lot stronger basis for validity. In particular think of RSA, which seems so obvious in retrospect ... but Diffie, Hellman and Merkle didn't think of it, and used a system they knew was weak so that they could demonstrate a proof of concept.)
Volvo patented it in the 50's and made it freely available for use.
Part of what is interesting to me about open source is that it provides a system of development that is pretty competitive with the established protectionist models, so I am watching the open source hardware scene very closely.
To me the question isn't whether patents are good or bad in some absolute term, it is more whether they are becoming obsolete for many situations.
I am so sick of every political argument in the US being reduced to some kind of technocratic majoritarianism.