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<title>Techdirt. Stories filed under &quot;standards&quot;</title>
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<item>
<pubDate>Tue, 9 Apr 2013 08:24:50 PDT</pubDate>
<title>New Study: USPTO Drastically Lowered Its Standards In Approving Patents To Reduce Backlog</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/innovation/articles/20130408/08244222623/new-study-uspto-drastically-lowered-its-standards-approving-patents-to-reduce-backlog.shtml</link>
<guid>http://www.techdirt.com/blog/innovation/articles/20130408/08244222623/new-study-uspto-drastically-lowered-its-standards-approving-patents-to-reduce-backlog.shtml</guid>
<description><![CDATA[ The massive problems of the patent system really started getting renewed attention between 2002 and 2004 or so, highlighted by the publication of the book <a href="http://www.amazon.com/gp/product/0691127948/ref=as_li_ss_tl?ie=UTF8&#038;camp=1789&#038;creative=390957&#038;creativeASIN=0691127948&#038;linkCode=as2&#038;tag=techdirtcom-20"><i>Innovation and Its Discontents: How Our Broken Patent System Is Endangering Innovation and Progress, and What to Do About It</i></a> by Adam Jaffe and Josh Lerner.  By that point, the combination of two key events in the late 90s was clearly being felt on the patents system.  First, and most importantly, was the impact of the <a href="http://en.wikipedia.org/wiki/State_Street_Bank_v._Signature_Financial_Group">State Street decision</a> that announced to the world that the courts considered software and business method patents legal.  Also important was the 1999 publication of <a href="http://www.amazon.com/gp/product/0875848990/ref=as_li_ss_tl?ie=UTF8&#038;camp=1789&#038;creative=390957&#038;creativeASIN=0875848990&#038;linkCode=as2&#038;tag=techdirtcom-20"><i>Rembrandts in the Attic: Unlocking the Hidden Value of Patents</i></a> by Kevin Rivette and David Kline, which led patent lawyers and tech companies alike to suddenly both ramp up their patenting, but also to look to sell off "unused" patents to companies (lawyers) who did nothing but threaten and sue over them.  Suddenly, patent trolls became a big, big issue.
<br /><br />
Around the time of the Jaffe and Lerner book, the USPTO seemed to actually take much of the criticism to heart.  One big part of Jaffe and Lerner's criticism was the simple fact that patent examiners had significant incentives to approve patents, and almost none to reject patents.  That is, the metrics by which they were measured included the rate of how many patent applications they processed.  But, since there is no such thing as a truly final rejection of a patent, people would just keep asking the USPTO to look at their application again.  Each time an examiner had to do this, their "rate" would decline, since they'd be spending even more time on the same old patent application.  But <i>approving</i> a patent got it off your plate and let the court system sort out any mess.  However, after the book was published, the USPTO actually seemed to pay attention and changed its internal incentives a bit to push for high quality approvals.  Not surprisingly, this meant that the approval rate dropped.  But, since there was more demand for bogus patents to sue over, more people appealed the rejections and the backlog grew.
<br /><br />
Patent system lovers started whining about the "backlog," but what they were really pissed off about was the fact that their bogus patents weren't getting approved.  Unfortunately, their message resonated with the new regime of the Obama administration, mainly Commerce Dept. boss, Gary Locke, and head of the USPTO, David Kappos.  Back in 2010, we noted that the USPTO had shifted back to <a href="http://www.techdirt.com/articles/20100819/12015210689.shtml">approving "pretty much anything"</a> and had clearly decreased their quality standards in an effort to rush through the backlog.  Not surprisingly, in stating this, we were attacked mercilessly by patent system supporters, who insisted that we were crazy, and the truth was that David Kappos had found some magic elixir that made all USPTO agents super efficient (or something like that -- their actual explanations were not much more coherent).  No matter what, they insisted that it was entirely possible to massively ramp up the number of approvals, decrease the backlog and not decrease patent quality.
<br /><br />
Needless to say, we've been skeptical that this was possible.
<br /><br />
And now the data is in, suggesting we were absolutely right all along.  A new study done by Chris Cotropia and Cecil Quillen of the University of Richmond and independent researcher Ogden Webster used information obtained via FOIA requests to delve into <a href="http://arstechnica.com/tech-policy/2013/04/study-suggests-patent-office-lowered-standards-to-cope-with-backlog/" target="_blank">what was really going on in the patent office</a> (link to a great summary of the research by Tim Lee).  The key issue, is (once again) the fact that patents are never truly rejected in full, and the people applying for patents just keep on trying again and again until someone in the USPTO approves it.  However, the USPTO, to hide some of this, counts some of those "rejections" that eventually get approved as "rejections" to artificially deflate the actual "approval rate" of patent applications.
<br /><br />
When the researchers corrected for all of this, they found that the actual patent approval rate in 2012 was almost 90% of all patents eventually get approved.  <i>90%</i>!  That's about where it was in 2004 and 2005 (as discussed above), though in 2001 it actually came close to <i>100%</i>!  However, as noted above, by the second half of 00's corrections had been put in place and the approval rate had declined to under 70% in 2009 -- meaning that the USPTO was actually rejecting bad patents.  But over the past three years, we've shot right back up.  And it's clear that if the approval rate is much higher, the USPTO is approving many, many more bad patents.
<br /><br />
In fact, it's likely that the story is even worse than before.  Back in 2004 and 2005 when the approval rates were similar, it was really before the public was aware of just how bad the patent troll problem was, so you had many fewer people trying to get their own bad patents to troll over.  In the past five years or so that has changed quite a bit.  So the number of <i>applications</i> has <a href="http://www.uspto.gov/web/offices/ac/ido/oeip/taf/us_stat.htm" target="_blank">shot up</a> massively as well.  In 2004 there were 382,139 applications.  By 2011 that had shot up by 50% to 576,763.
<br /><br />
I don't think anyone thinks that we suddenly became 50% more inventive between 2004 and 2011.  No, the truth is that people were suddenly flooding the USPTO with highly questionable patent applications on broad and vague concepts, hoping to get a lottery ticket to shake down actual innovators.  And, the USPTO under David Kappos complied, granting nearly all of them.  Incredible.
<br /><br />
When Thomas Jefferson put together the first patent system -- after being quite skeptical that patents could actually be a good thing -- he was quite careful to note that patents should only be granted in the rarest of circumstances, since such a monopoly could do a lot more harm than good.  And yet, today, we encourage tons of people to send in any old bogus idea, and the USPTO has turned into little more than a rubber stamp of approval, allowing patent holders to shake down tons of people and companies, knowing that many will pay up rather than fight, and then leaving the few cases where someone fights back to be handled by the courts (who seem ignorant of the game being played).
<br /><br />
The end result is a true disaster for actual innovation and the economy.  We should all be able to agree that bad patents are not a good thing.  And the USPTO is, undoubtedly, approving tons of awful patents when its true approval rate is hovering around 90%.<br /><br /><a href="http://www.techdirt.com/blog/innovation/articles/20130408/08244222623/new-study-uspto-drastically-lowered-its-standards-approving-patents-to-reduce-backlog.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20130408/08244222623/new-study-uspto-drastically-lowered-its-standards-approving-patents-to-reduce-backlog.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20130408/08244222623/new-study-uspto-drastically-lowered-its-standards-approving-patents-to-reduce-backlog.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>shockingly-under-shocking</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130408/08244222623</wfw:commentRss>
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<pubDate>Thu, 27 Sep 2012 19:59:00 PDT</pubDate>
<title>DRAM Patent Holder Rambus Called Out (Again) For Shredding Evidence</title>
<dc:creator>Tim Cushing</dc:creator>
<link>http://www.techdirt.com/articles/20120925/20430720512/dram-patent-holder-rambus-called-out-again-shredding-evidence.shtml</link>
<guid>http://www.techdirt.com/articles/20120925/20430720512/dram-patent-holder-rambus-called-out-again-shredding-evidence.shtml</guid>
<description><![CDATA[ <a href="http://www.techdirt.com/search.php?q=rambus" target="_blank">Rambus Inc.</a>&nbsp;is back in the news again as some of its questionable pre-litigation tactics have been highlighted by another company on the receiving end of a patent infringement lawsuit. Rambus Inc. sued SK Hynix and several other chip builders at the beginning of 2000, claiming to hold the rights to certain DRAM technology.&nbsp;<br />
<br />
<a href="http://www.courthousenews.com/2012/09/25/50623.htm" target="_blank">Rambus is perhaps best known for a move that took place well over a decade ago</a>, shortly before it went into the innovation-via-litigation business.
<blockquote>
<i>On Friday, Whyte found that Rambus destroyed documents when it anticipated litigation. Specifically, Whyte said, Rambus employees were told to destroy documents at annual "shred days," from 1998 to 2000, prior to filing the patent suits.</i><br />
<br />
<i>Because litigation was "reasonably foreseeable," Whyte ruled, Rambus should had preserved the documents.</i><br />
<br />
<i>"Rambus engaged in spoliation of evidence when it engaged in the destruction of documents on all three shred days," the 66-page ruling states.</i></blockquote>
"Annual shred days?" The fact that Rambus had not only a periodic event but a nickname for the event should probably be taken as an indication that the "company" needed to rid itself of possibly damning paperwork. It calls to mind something akin to mobsters moving suitcases of cash to their mothers&#39; houses ahead of a RICO investigation.<br />
<br />
Now, many companies will annually shred financial documents, personnel files, etc. that have reached the expiration date of federal and state retention requirements. However, what Rambus did hardly sounds like just being tidy, despite its "engineers are messy" defense.
<blockquote>
<i>Rambus countered that its engineers tended to be "pack rats" and said that its policy was justified...</i></blockquote>
SK Hynix had brought Rambus&#39; "shredding days" to the attention of the disctrict court back in 2005, claiming that "Rambus had spoliated evidence and that its &#39;unclean hands&#39; warranted dismissal of 15 infringement claims." This claim was dismissed and in 2011, US District Judge Ronald Whyte ordered SK Hynix to pay $397 million in royalties. On appeal, Whyte reexamined Hynix&#39;s claims and found that Rambus had indeed shredded plenty of documents, but possibly nothing relevant.
<blockquote>
<i>"The evidence does not show that Rambus knowingly destroyed damaging evidence," Whyte said.</i><br />
<br />
<i>"Although the evidence does not support a conclusion that Rambus deliberately shredded documents it knew to be damaging, the court concludes that Rambus nonetheless spoliated evidence in bad faith or at least willfully," he added.</i></blockquote>
He also gave Rambus a bit of a post-facto warning.
<blockquote>
<i>Because litigation was "reasonably foreseeable," Whyte ruled, Rambus should had preserved the documents.</i></blockquote>
Then there&#39;s this, in which Whyte states that the litigation might have gone differently if no documents had been shredded.
<blockquote>
<i>"Even if none of the destroyed documents would have shed new light on the disclosure obligation, there may have been internal Rambus documents containing information about Rambus&#39; plans to gain market power by using information learned at [Joint Electron Device Engineering Council] JEDEC meetings. Such evidence could have been relevant and given support to Hynix&#39;s equitable claims and defenses," Whyte said.</i><br />
<br />
<i>"The court concludes that Hynix has made a plausible, concrete suggestion that it may have been prejudiced by destruction of JEDEC-related documents, and that Rambus has not overcome this suggestion of prejudice by clear and convincing evidence."</i></blockquote>
Despite all this, SK Hynix is still on the hook for royalties. The $397 million <i>might&nbsp;</i>be reduced, but any reduction would have more to do with royalties Rambus has already collected from other companies, rather than any excessive shredding or the fact that it basically <a href="http://www.techdirt.com/articles/20010626/101245.shtml" target="_blank">reverse engineered</a> its patents to cover new industry standards. Unfortunately for SK Hynix, the shredding that has&nbsp;<a href="http://www.techdirt.com/articles/20050302/1215243.shtml" target="_blank">already resulted</a> in two Rambus infringement suits <a href="http://www.techdirt.com/articles/20090109/1859533354.shtml" target="_blank">being tossed out</a>&nbsp;doesn&#39;t seem to be doing much for it.<br /><br /><a href="http://www.techdirt.com/articles/20120925/20430720512/dram-patent-holder-rambus-called-out-again-shredding-evidence.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120925/20430720512/dram-patent-holder-rambus-called-out-again-shredding-evidence.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120925/20430720512/dram-patent-holder-rambus-called-out-again-shredding-evidence.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>no-evidence-that-destroyed-evidence-was-relevant...-wait,-what?</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120925/20430720512</wfw:commentRss>
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<pubDate>Fri, 3 Aug 2012 09:26:17 PDT</pubDate>
<title>Europe Already Has Draft Standard For Real-Time Government Snooping On Services Like Facebook And Gmail</title>
<dc:creator>Glyn Moody</dc:creator>
<link>http://www.techdirt.com/articles/20120731/11414819897/europe-already-has-draft-standard-real-time-government-snooping-services-like-facebook-gmail.shtml</link>
<guid>http://www.techdirt.com/articles/20120731/11414819897/europe-already-has-draft-standard-real-time-government-snooping-services-like-facebook-gmail.shtml</guid>
<description><![CDATA[ <p>As the old joke goes, standards are wonderful things, that's why we have so many of them.  But who would have thought that ETSI, the European Telecommunications Standards Institute, has already produced a draft standard on how European governments can snoop on cloud-based services like Facebook and Gmail -- even when encrypted connections are used?
</p><p>
ETSI DTR 101 567, to give it the full title, was pointed out to us by Erich Moechel, who has written an excellent exploration of its elements (<a href="http://fm4.orf.at/stories/1701899/">original in German</a>).  Here's the summary from the <a href="http://www.3gpp.org/ftp/tsg_sa/WG3_Security/TSGS3_LI/2012_45_Bratislava/SA3LI12_044.doc">draft standard</a> (Microsoft Word format):

<i><blockquote>The present document provides an overview on requests for handover and delivery of real-time information associated with cloud/virtual services. The report identifies Lawful Interception needs and requirements in the converged cloud/virtual service environment, the challenges and obstacles of complying with those requirements, what implementations can be achieved under existing ETSI LI [Lawful Interception] standards, and what new work may be required to achieve needed Lawful Interception capabilities. Cloud Services in whichever forms they take (Infrastructure, Software, Platform or combinations of these) are often trans border in nature and the information required to maintain Lawful Interception (LI) capability or sufficient coverage for LI support may vary in different countries, or within platforms of different security assurance levels. This work aims to ensure capabilities can be maintained while allowing business to utilise the advantages and innovations of Cloud Services and was undertaken cooperatively with relevant cloud security technical bodies.</blockquote></i>

As that makes clear, this is being presented as "maintaining" interception capabilities in a world where cloud computing makes previous approaches inapplicable.  The new standard specifically mentions social networking, file sharing and video conferencing as new areas that need to be addressed.  
</p><p>
One key section spells out how this is to be achieved:

<i><blockquote>If the traffic is encrypted, the entity responsible for key management must ensure it can be decrypted by the CSP [Communication Service Provider] or LEA [Law Enforcement Agency].
<br /><br />
In order to maintain LI coverage the cloud service provider must implement a Cloud Lawful Interception Function (CLIF). This can be by way of Applications Programming Interface (API) or more likely ensuring presentation of information in a format recognisable to interception mechanisms. Deep packet inspection is likely to be a constituent part of this system.</blockquote></i>

As this makes clear, along with the intercepted information, the standard envisages encryption keys being handed over routinely.  Just to make things complete, DPI -- deep packet inspection -- is also regarded as a likely element of the system.
</p><p>
Since this is currently a draft, the threat it represents might be seen as purely theoretical; but a recent article in the Guardian confirms that the UK government "<a href="http://www.guardian.co.uk/technology/2012/jul/28/isecurity-services-emails-social-media">quietly agreed to measures that could increase the ability of the security services to intercept online communication</a>"  -- a reference to the ETSI draft.

The Guardian also provides us with some explanation of why this draft just happens to be available at precisely the moment when the UK government is announcing a plan that seems likely to use it:

<i><blockquote>Etsi has faced criticism in the past for the pre-emptive inclusion of wiretapping capabilities, a decision that critics say encouraged European governments to pass their wiretapping laws accordingly. According to Ross Anderson, professor in security engineering at the University of Cambridge Computer Laboratory, the institute has strong links with the intelligence agencies and has a significant British contingent, along with a number of US government advisers.</blockquote></i>

It's a classic case of policy laundering; here's how it will probably work.  
</p><p>
The British government insists now that it will "only" gather communications data, and not content.  At the same time, it will require that ISPs adopt the new ETSI cloud interception standard (once it's been finalized) in the "black boxes" that they must install under the proposed <a href="http://www.techdirt.com/articles/20120614/14141919329/uk-snoopers-charter-seeks-to-eliminate-pesky-private-communications.shtml">snooping legislation</a>.  That will put in place all the capabilities needed for accessing encrypted streams -- since those providing cloud services will be required to hand over the encryption keys -- and hence the content.  The UK government may not intend accessing content today, but thanks to the wonders of function creep, when it decides to do it tomorrow the facility will be there waiting for it.
</p><p>Meanwhile, European governments will be able to point to the UK's adoption of the ETSI standard as just "good practice"; they will ask their own ISPs to implement it, while insisting that they too have no intention of accessing the contents of people's Internet streams either.  Until, that is, the day comes -- probably in the wake of some terrorist attack or pedophile scandal -- when the governments will note that since the capability is available, it would be "irresponsible" not to use it to tackle these terrible crimes. The US government will then bemoan the fact that Europe is taking better care of its citizens than it can, and will therefore pass laws requiring US ISPs to install similar real-time access to their systems, and for cloud-based services to hand over the encryption keys. Luckily, there will be a well-tried European standard that can serve as a model....
</p><p>
Follow me @glynmoody on <a href="http://twitter.com/glynmoody">Twitter</a> or <a href="http://identi.ca/glynmoody">identi.ca</a>, and on <a href="https://plus.google.com/100647702320088380533">Google+</a></p><br /><br /><a href="http://www.techdirt.com/articles/20120731/11414819897/europe-already-has-draft-standard-real-time-government-snooping-services-like-facebook-gmail.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120731/11414819897/europe-already-has-draft-standard-real-time-government-snooping-services-like-facebook-gmail.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120731/11414819897/europe-already-has-draft-standard-real-time-government-snooping-services-like-facebook-gmail.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>not-that-we'd-ever-use-it</slash:department>
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<pubDate>Mon, 18 Oct 2010 07:24:54 PDT</pubDate>
<title>BSA Sends Ridiculously Bogus Letter To European Commission</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20101018/01100611459/bsa-sends-ridiculously-bogus-letter-to-european-commission.shtml</link>
<guid>http://www.techdirt.com/articles/20101018/01100611459/bsa-sends-ridiculously-bogus-letter-to-european-commission.shtml</guid>
<description><![CDATA[ Is it just me, or is the BSA becoming a bigger and bigger joke each time it does just about <i>anything</i> these days?  For years, the organization has put out its yearly <a href="http://www.techdirt.com/articles/20100917/09113311061/bsa-again-lies-with-stats-idc-should-be-ashamed-to-put-its-name-on-pure-nonsense.shtml">bogus stats</a> on "piracy," which have been debunked over and over and over again.  They're about the only trade group that still has the gall to equate a single unauthorized copy to a single lost sale (even the RIAA and MPAA have moved away from that claim).  They've also been known to simply <a href="http://www.techdirt.com/articles/20100719/00264510262.shtml"><i>make up</i></a> survey numbers, rather than actually ask people in certain countries.  And then, even on news stories, they seem to make it clear that they have no clue what's going on -- such as last week's announcement that ACTA <a href="http://www.techdirt.com/articles/20101011/00590611356/bsa-falsely-claims-acta-is-a-treaty-that-has-already-been-signed-by-37-countries.shtml">was a treaty already signed by 37 countries</a>, when it's neither a treaty, nor has it been signed by anyone.
<br /><br />
The latest is equally as ridiculous and makes the BSA look even more uninformed than usual.  As a whole bunch of you have sent in, the BSA apparently sent the European Commission a letter, objecting to the proposed "European Interoperability Framework for European Public Services."  You can read the letter below:
<center>
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</center>
The Free Software Foundation Europe has done an <a href="http://www.fsfe.org/projects/os/bsa-letter-analysis.html.en" target="_blank">incredibly thorough debunking of the letter</a>, which is a worthwhile read from top to bottom.  One key snippet is in response to the BSA's absolutely laughable assertion that "royalty free" means "non-commercial":
<blockquote><i>
The BSA argues that "[m]any of today's most widely-deployed open specifications incorporate patented innovations that were invented by commercial firms...including WiFi, GSM , and MPEG." 
<br /><br />
This is an attempt to create a false dichotomy between "commercial" companies inventing patented technology, in contrast to "non-commercial" inventions which are not patented. In reality a great wealth of unpatented modern technology originating in commercial companies constitute globally implemented standards (such as HTML5), whilst continuing to provide their creators with revenue. There is no such divide, either economical or ideological, between hardware and software technologies which are patented, and those which are not. Yet the BSA divisively implies there is a difference between conventional and accepted business methods, which they associate with patents, and un-businesslike non-commercial organisations, which they associate with patent-free technology. Given the increasing prevalence of Free Software in Europe's IT service market, such a claim is plainly false.
</i></blockquote>
It really does make you wonder why anyone takes the BSA seriously these days, as it's even more ridiculous and unbelievable than your average protectionist industry trade association.  What's amazing is that the folks at the BSA actually think such buffoonery is a good idea, when all it's really continued to do is sap the organization of pretty much any credibility.<br /><br /><a href="http://www.techdirt.com/articles/20101018/01100611459/bsa-sends-ridiculously-bogus-letter-to-european-commission.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101018/01100611459/bsa-sends-ridiculously-bogus-letter-to-european-commission.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101018/01100611459/bsa-sends-ridiculously-bogus-letter-to-european-commission.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>the-lies-the-bsa-tells</slash:department>
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<pubDate>Fri, 1 Oct 2010 14:41:34 PDT</pubDate>
<title>Will The Supreme Court Review Patent Invalidation Standard In Microsoft vs. i4i Case?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20100930/23332011243/will-the-supreme-court-review-patent-invalidation-standard-in-microsoft-vs-i4i-case.shtml</link>
<guid>http://www.techdirt.com/articles/20100930/23332011243/will-the-supreme-court-review-patent-invalidation-standard-in-microsoft-vs-i4i-case.shtml</guid>
<description><![CDATA[ At the end of August, when Microsoft officially <a href="http://www.techdirt.com/articles/20100827/18025110808.shtml">appealed</a> its <a href="http://www.techdirt.com/articles/20091222/1215207475.shtml">loss</a> in a patent infringement lawsuit filed by a company named i4i over features for editing XML in a document (patent <a href="http://www.google.com/patents?id=y8UkAAAAEBAJ&#038;dq=5787449" target="_blank">5,787,449</a>), I doubted that the Supreme Court would hear the case, given the lack of any larger significance.  However, I may have underestimated how much the tech and legal community would rally behind a key point in the appeal: <a href="http://www.law.com/jsp/cc/PubArticleFriendlyCC.jsp?id=1202472695453" target="_blank">the legal standard for invalidating a patent</a> -- something the Supreme Court hinted it had trouble with way back in the famous <a href="http://www.techdirt.com/articles/20070430/100114.shtml">KSR case</a>.
<br /><br />
As <a href="https://www.eff.org/deeplinks/2010/09/eff-supports-microsoft-seeking-make-it-easier" target="_blank">the EFF explains in its blog post</a> about its own brief:
<blockquote><i>
In court, parties have to prove their case by some "standard of proof." In almost all civil cases, the standard is "preponderance of the evidence" -- meaning it is more likely than not that the facts are true. When the question is invalidating a patent, however, the U.S. Court of Appeals for the Federal Circuit decided that a defendant trying to prove a patent invalid must do so by a higher standard than normal civil cases, that of "clear and convincing" evidence. "Clear and convincing" means that the facts are "highly probable," which is a much more difficult standard to meet when trying to invalidate a patent than just a preponderance. 
</i></blockquote>
Considering the massive economic harm that bad patents can do, you would think that it would absolutely make sense for there to be a lower standard to invalidate bad patents.  And, certainly, it seems that lots of folks agree.  The link to Law.com above has links to most of the briefs filed in support of changing the standard -- including summaries of what's in each brief.  We already mentioned EFF (whose filing was done with Public Knowledge, CCIA and the Apache Software Foundation), but other briefs came from CTIA, Google, Yahoo, Intel, Apple, Verizon, Facebook, Wal-Mart, HP, Dell, HTC, Intuit, Toyota, Netflix, Newegg, SAP, GM, Teva Pharmaceuticals, Cisco and a few others as well.  In other words, there are a lot of folks interested in this issue, and reasonably see this as an important way to stop the harm caused by bad patents.
<br /><br />
The key issue, of course, is that patent examiners really don't have that much time to spend on patents, so their ability to really review the state of the art and the prior art is limited.  That's not putting down the patent examiners; it's just the fact of the matter.  An average examiner spends just a few days on a patent, which is hardly enough time to recognize what the real state of the art might be.  So it seems to make a lot of sense to have a low bar to proving a patent invalid at a later date -- especially if more evidence can be shown on the state of the art at the time.
<br /><br />
Along those lines, in a filing by a bunch of law, economics and business professors it's pointed out that, not only do patent examiners not have nearly enough time to understand the state of the art, but that a patent examination process happens with no real "opposition," who has the real incentive to point out the state of the art or the prior art.  That's what happens during a trial, and that's a more likely situation to be able to fairly evaluate patent quality.  Thus, the courts shouldn't put too much weight on the examiner's determination, as it's hardly the best review.
<br /><br />
Another key point made in the filings, is the fact that, back before CAFC (the appeals court that handles most patent appeals) was created and started using this standard, disputed patents were much more likely to be rejected as invalid.  However, since this change has occurred, a much higher percentage are held valid.  The quality didn't change -- those are still bad patents.  It's just that the standard for invalidating bad patents changed.  It's hard to see who would argue that leaving bad patents in place is a good thing... unless your business relies on bad patents.
<br /><br />
I'm still not convinced the Supreme Court is really interested in taking this on, but given the amount of firepower asking it to fix this issue, perhaps the Court will do the right thing.<br /><br /><a href="http://www.techdirt.com/articles/20100930/23332011243/will-the-supreme-court-review-patent-invalidation-standard-in-microsoft-vs-i4i-case.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20100930/23332011243/will-the-supreme-court-review-patent-invalidation-standard-in-microsoft-vs-i4i-case.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20100930/23332011243/will-the-supreme-court-review-patent-invalidation-standard-in-microsoft-vs-i4i-case.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>perhaps</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20100930/23332011243</wfw:commentRss>
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<pubDate>Thu, 12 Mar 2009 23:45:00 PDT</pubDate>
<title>Apple Withholds Patent From Widget Standard</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20090312/0315594086.shtml</link>
<guid>http://www.techdirt.com/articles/20090312/0315594086.shtml</guid>
<description><![CDATA[ The idea of standardization around certain technologies makes some amount of sense.  Once a standard is set at a lower level, it opens up plenty of innovation opportunities above that standard.  However, in the past few years, we've seen a pretty massive problem with the combination of standards and patents.  Basically, everyone starts looking for ways to somehow connect a patent to a standard -- but they often try to hide the details so that, once the standard is set, they can start demanding everyone pay up for patent infringement.  This is even more likely when companies come up with an agreement to pool patents in a royalty-free manner for the sake of the patent.  Companies try to keep their patents out so they can later demand money.  It's way too common these days.  The latest to do this appears to be Apple, who <a href="http://news.cnet.com/8301-13505_3-10191484-16.html" target="_new">withheld a key patent on technology for online "widgets"</a>, which has recently been standardized.  The standard was set by the W3C, who asked for companies to commit their patents royalty-free in order to move the standard forward so that everyone could benefit.  Instead, Apple held out a key patent, and can now start demanding people pay up.  On the whole, Apple hasn't been that aggressive in enforcing its patents, and hopefully that doesn't change now -- but it does show once again how important patents have become in the standards setting process, and how much trouble they can cause.<br /><br /><a href="http://www.techdirt.com/articles/20090312/0315594086.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20090312/0315594086.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20090312/0315594086.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>patents-and-standards</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20090312/0315594086</wfw:commentRss>
</item>
<item>
<pubDate>Wed, 11 Feb 2009 19:43:54 PST</pubDate>
<title>It's Not Ad Standards That Have Killed The Online Ad Business</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20090209/0313053700.shtml</link>
<guid>http://www.techdirt.com/articles/20090209/0313053700.shtml</guid>
<description><![CDATA[ We've been pointing out for some time that any business that relies on traditional display advertising to make money is <a href="http://www.techdirt.com/articles/20080318/004136567.shtml">in for a world of hurt</a> because almost <i>no one</i> pays attention to those ads.  There's a simple reason for this: they're not at all relevant or useful.  They're often annoying.  And, most importantly, they're not what anyone is on a page to see.  When people surf to a web page, they're looking for the useful content -- and most advertising is not useful content.
<br /><br />
This seems rather obvious, but it hasn't stopped some folks who tend to rely on such bad display advertising from trying to rationalize why that market is rapidly shrinking.  The NY Times quotes MSNBC.com's president, Charles Tillinghast, who says the real reason that display advertising is drying up is <a href="http://bits.blogs.nytimes.com/2009/02/05/did-ad-standards-kill-the-online-ad-business/" target="_new">because the IAB agreed to standard sizes for display advertisements</a> earlier this decade.  To him, that meant that the display ads were distributed everywhere via ad networks, creating over-supply and commoditization, driving down prices.
<br /><br />
While I don't deny that there may be an oversupply -- I doubt that a more limited supply would have made a big difference.  The problem isn't with the <i>supply</i>.  It's with the <i>demand</i>.  Most people don't want such useless advertising, so they ignore it (sometimes with help from Adblock).  If you want to make advertising work, the issue isn't getting rid of standardization, or worrying about commoditization, it's about making the advertisements into <i>good content</i> that people actually <i>want</i> to participate with, rather than annoying "ads" that they want to avoid.<br /><br /><a href="http://www.techdirt.com/articles/20090209/0313053700.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20090209/0313053700.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20090209/0313053700.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>it's-crappy,-annoying-ads</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20090209/0313053700</wfw:commentRss>
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<pubDate>Thu, 21 Aug 2008 20:03:00 PDT</pubDate>
<title>The First Step Is For Microsoft To Admit It Has A Problem</title>
<dc:creator>Tom Lee</dc:creator>
<link>http://www.techdirt.com/articles/20080820/0941022045.shtml</link>
<guid>http://www.techdirt.com/articles/20080820/0941022045.shtml</guid>
<description><![CDATA[ <p>Ars Technica <a href="http://arstechnica.com/news.ars/post/20080819-mozilla-drags-ie-into-the-future-with-canvas-element-plugin.html">brings word</a> of a pair of interesting efforts underway over at the Mozilla Project -- both aimed at improving Internet Explorer, whether Microsoft likes it or not.</p>

<p>You may have heard of the first one already: <a href="https://wiki.mozilla.org/Tamarin:ScreamingMonkey">ScreamingMonkey</a> has gotten <a href="http://www.infoworld.com/article/08/06/23/eich-javascript-interview_1.html">some press</a>.  It aims to make the core of Firefox's next-generation Javascript engine (originally developed by Adobe) available in IE, providing advantages in speed and standards-compliance.</p>

<p>The other project is a bit more recent, and a bit more far-out: it's an IE plugin created by Mozilla developer Vladimir Vuki&#263;evi&#263; that implements the HTML5 &lt;canvas&gt; element -- something that IE's never gotten around to supporting.  Canvas allows Javascript to draw 2D graphics on the client-side.  You may have stumbled across it in the form of one or another <a href="http://canvex.lazyilluminati.com/">nifty in-browser FPS demo</a>.  It's a potentially powerful tool, but, as Ars notes, one that hasn't achieved widespread adoption by web developers due to IE's lack of support for it.</p>

<p>Both of these projects are impressive pieces of technology.  But unfortunately both attempts to improve IE are unlikely to succeed in the ways that their authors would like -- and it's easy to see why.  It's safe to say that IE users tend to be among the web's least technically sophisticated.  These are exactly the people who can least reasonably be expected to install modular improvements to their browser's underlying technology.  It's hard to imagine anyone finding it easier to do this than to simply download and begin using Firefox -- a task that's already clearly too complicated for many people.  And that's to say nothing of the difficulty of getting the word out in the first place.</p>

<p>The right solution is the same as it's always been: for Microsoft to fix its abysmally noncompliant browser.  They wouldn't even have to do it themselves!  As <a href="http://www.tomrafteryit.net/microsoft-open-source-internet-explorer/">Tom Raftery suggested some time ago</a>, Microsoft could simply open-source IE.  Superficially, this seems like a good fix: it's not as if IE is a profit center for Microsoft, and Apple has already shown the viability of the approach with its open source <a href="http://en.wikipedia.org/wiki/Webkit">WebKit</a> HTML rendering engine.  A bold step like that could go a long way to bolstering what has thus far been a <a href="http://port25.technet.com/home/downloads/default.aspx">fairly anemic stab at open source</a> on Redmond's part.</p>

<p>But of course it will never happen.  As some of Raftery's commenters pointed out, IE probably couldn't be open sourced without revealing critical -- and valuable -- Windows code.  More to the point, Microsoft wants a broken browser.  Not supporting &lt;canvas&gt; means that no one will rely on it, which in turn means less competition for Microsoft's rich client library Silverlight -- created to solve the problem of missing &lt;canvas&gt;-like functionality (among other things).  More broadly, a world of webapps that are perpetually forced to accommodate IE's underachieving status means less time spent by users in the cloud, and consequently a bit more relevance for MS.  Put simply, IE's awfulness isn't a bug, it's a feature.</p>

<p>This is hardly an original observation, but that doesn't make it any less true.  And that means that the answer to IE's persistence is the same as it's always been: for Safari, Opera, Firefox et al to consistently provide a better browsing experience and thereby compel Microsoft to fix its mistakes -- as it at least began to do with IE7.  Unfortunately, that's something that they're going to have to do for themselves.</p><br /><br /><a href="http://www.techdirt.com/articles/20080820/0941022045.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20080820/0941022045.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20080820/0941022045.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>hi,-my-name-is-Microsoft-and...</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20080820/0941022045</wfw:commentRss>
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<pubDate>Wed, 23 Jul 2008 15:21:00 PDT</pubDate>
<title>Is Google's Proprietary Tech Stack Destroying Its Acquisitions?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20080717/2255221720.shtml</link>
<guid>http://www.techdirt.com/articles/20080717/2255221720.shtml</guid>
<description><![CDATA[ While Google has bought plenty of small startups, almost none of those deals have amounted to very much.  It almost seems like most of the startups disappear into Google forever.  There are a few exceptions such as YouTube and (maybe) Writely.  But the list of startups that have simply languished or died is much longer.  TechCrunchIT is running an interesting post that suggests one of the key reasons: <a href="http://www.techcrunchit.com/2008/07/16/google-where-companies-go-to-die/" target="_new">Google's proprietary tech stack</a>.  While Google is a big open source supporter for lower level infrastructure, once you get above that -- it's very much a strong believer in doing everything its own way.  I've heard from friends at Google about the difficulty they've had learning to deal with Google's tech stack -- and certainly have heard how it's slowed down the progress of some Google acquisitions while they learn how to "transition."
<br /><br />
In fact, some have pointed out that this is one of the side benefits to Google's AppEngine <a href="http://www.techdirt.com/articles/20080407/225749782.shtml">offering</a>.  Since it exposes some of Google's tech stack to folks for them to develop and run their applications, it will make it <i>much</i> easier to integrate them into Google at a later date.  So, for startups whose strategy is to get acquired by Google (and, I should note, if you start with that strategy, you're probably going to fail), it may make sense to develop on AppEngine just because you're already signaling to Google that the integration costs are significantly lower.
<br /><br />
Still, this highlights one of the major downsides to Google's belief that it can do everything much better than everyone else by starting from scratch: in doing so, it actually makes it much harder to capitalize on synergies from many acquisition targets.  Yes, there are reasons to go against the "standard" way of doing things, but there are significant costs as well.<br /><br /><a href="http://www.techdirt.com/articles/20080717/2255221720.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20080717/2255221720.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20080717/2255221720.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>not-invented-at-Google-syndrome</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20080717/2255221720</wfw:commentRss>
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<pubDate>Thu, 17 Jul 2008 09:55:51 PDT</pubDate>
<title>And You Thought The Next Generation Video Standards Battle Was Over?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20080717/0328031705.shtml</link>
<guid>http://www.techdirt.com/articles/20080717/0328031705.shtml</guid>
<description><![CDATA[ If you thought the questions about what technology standard we'd be using to watch movies was settled when <a href="http://www.techdirt.com/articles/20080129/194812119.shtml">Blu-ray won</a> the next generation DVD standards battle, then you're in for a bit of a surprise.  In taking nearly half a decade to <a href="http://www.techdirt.com/articles/20050823/1146255_F.shtml">decide</a> which standard would make it, the DVD camps left open plenty of opportunity for online competitors to start making their moves.  The technology for delivering movies online has been rapidly improving.  But, of course, what we didn't count on was that it would just create a huge new mess.
<br /><br />
Earlier this week, there was all sorts of talk about Netflix <a href="http://seattlepi.nwsource.com/business/370756_xbox15.html">streaming movies to the Xbox</a> as part of Netflix's <a href="http://www.techdirt.com/articles/20080103/003042.shtml">effort</a> to get consumer electronics companies to build in support for Netflix streaming.  As we warned when that announcement was made, it's a bad idea for Netflix to focus on a proprietary streaming solution, as it's only going to set up another standards battle.  And, indeed, Blockbuster is working on <a href="http://www.techdirt.com/articles/20080410/193857817.shtml">its own</a> such solution.  Then, of course, everyone knows that <a href="http://www.techdirt.com/articles/20080115/150039.shtml">Apple's</a> in the market with the AppleTV.  And don't forget <a href="http://www.techdirt.com/articles/20080630/0248041548.shtml">Sony</a>, which is selling a special (extra expensive) TV for downloading movies.  And, of course, there are countless <a href="http://www.techdirt.com/articles/20080411/142639826.shtml">startups</a> in the market as well.
<br /><br />
Oh, and how could we forget Amazon?  The company is now announcing <a href="http://www.nytimes.com/2008/07/17/technology/17amazon.html?partner=rssuserland&#038;emc=rss&#038;pagewanted=all" target="_new">its own proprietary online store for streaming movies and TV</a>.  This one piggybacks a bit on Sony's awful plan (meaning if you buy that super expensive internet-connected TV, you'll also be able to stream movies from Amazon).
<br /><br />
But the end result is a total mess for the entire market, and that doesn't help anyone.  All of the players should take a look at how badly the multi-year DVD standards battle hurt the industry.  It makes people unwilling to buy certain hardware, as they don't want to be stuck with the "loser" a year from now.  What's wrong with coming up with a single standard for streaming movies from any particular service to various TV-connected devices and computers?  Then let the different providers compete on actual services provided?  That would increase adoption, and let these companies do what they do best, rather than fighting a can't-win battle against too many other competitors.<br /><br /><a href="http://www.techdirt.com/articles/20080717/0328031705.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20080717/0328031705.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20080717/0328031705.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>we've-got-a-new-one-coming-on</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20080717/0328031705</wfw:commentRss>
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<pubDate>Tue, 22 Apr 2008 16:06:59 PDT</pubDate>
<title>Court Overturns FTC Ruling Against Rambus</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20080422/144051920.shtml</link>
<guid>http://www.techdirt.com/articles/20080422/144051920.shtml</guid>
<description><![CDATA[ We've been covering the story of Rambus' <a href="http://www.techdirt.com/articles/20010626/101245.shtml">tricks</a> to get itself a patent that covered a standard by sitting in on standards meetings and then modifying its patents to cover the standard.  The rulings on the various lawsuits have gone back and forth on this, and while Rambus has had some wins and some losses in court, last year the FTC stepped in and <a href="http://www.techdirt.com/articles/20060802/0825211.shtml">smacked</a> the company down, noting that it had used questionable means to get itself an effective monopoly on the memory market.  Unfortunately, that FTC ruling has <a href="http://www.nytimes.com/reuters/technology/business-rambus-ftc.html?ex=1366603200&#038;en=f89bb038e0941cab&#038;ei=5090&#038;partner=rssuserland&#038;emc=rss" target="_new">now been overturned by an appeals court</a> that said the FTC failed to show evidence of a monopoly.  This is unfortunate for a variety of reasons.  If the FTC's ruling had been allowed to stand, it would have shown how an ill-gotten patent would be the equivalent of an illegal monopoly.  That seems like the proper result, as a patent clearly is a government granted monopoly.  So, if the patent is gained through questionable means, then that monopoly should be considered an illegal monopoly.  Unfortunately the appeals court disagreed, and that will make us all worse off, as it will give the government fewer tools to crack down on abusers of the patent system.<br /><br /><a href="http://www.techdirt.com/articles/20080422/144051920.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20080422/144051920.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20080422/144051920.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>bad-news-all-around</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20080422/144051920</wfw:commentRss>
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<pubDate>Tue, 11 Mar 2008 05:45:00 PDT</pubDate>
<title>Yet Another HD DVD Format Steps Into The Ring?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20080310/020426490.shtml</link>
<guid>http://www.techdirt.com/articles/20080310/020426490.shtml</guid>
<description><![CDATA[ Thought the format war over high definition DVD technologies was <a href="http://www.techdirt.com/articles/20080217/193456272.shtml">over</a> and <a href="http://www.techdirt.com/articles/20080307/122014474.shtml">Blu-ray had won</a>?  Perhaps you should think again.  The NY Times has a story about <a href="http://www.nytimes.com/2008/03/10/technology/10dvd.html?ex=1362888000&#038;en=12fee4822b2e6c26&#038;ei=5090&#038;partner=rssuserland&#038;emc=rss" target="_new">yet another attempt at a high definition DVD technology</a>, this time called HD VMD.  It's not hard to predict where this one is going: it's dead on arrival.  While the company behind it insists it's not trying to start a standards battle, it's difficult to see how you can judge it any other way.  After all, why would any studio want to go through the same mess from the past five years in arguing over which standard to release their movies on?  The folks behind HD VMD seem to be banking their entire efforts on two very weak pegs: first, their system is cheaper than Blu-ray and second, their Chairman is a big shot Hollywood distributor.  If that's the case, he hasn't been particularly effective as there are only 17 movies available in the format -- and you probably wouldn't recognize any of them.  As for the cost issue, that's dead on arrival as well.  HD DVD was cheaper than Blu-ray and that didn't help it survive.  Besides, anyone who understands technology advancement curves knows that Blu-ray is going to start getting cheaper and cheaper pretty fast.  The cost advantage will disappear before long.  But, the single biggest factor is just that the studios know they've lost three or four good years of selling high def DVDs and don't want to bother with yet another format war.<br /><br /><a href="http://www.techdirt.com/articles/20080310/020426490.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20080310/020426490.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20080310/020426490.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>this-will-end-quickly-on-a-knockout</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20080310/020426490</wfw:commentRss>
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<pubDate>Tue, 22 Jan 2008 04:21:00 PST</pubDate>
<title>Which Is More Important For Innovation: A Standard Platform Or Competition?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20080116/005211.shtml</link>
<guid>http://www.techdirt.com/articles/20080116/005211.shtml</guid>
<description><![CDATA[ There's an interesting debate going on in the video game world over the question of whether or not the video game market would be better off <a href="http://blog.wired.com/games/2008/01/why-david-jaffe.html">if there were a standard console platform</a>, rather than separate walled gardens (Xbox, Playstation, Nintendo).  What the discussion is really about is what is more important for innovation: having a standard platform that everyone agrees on or having competition between platforms -- and that debate extends well beyond the video game world.  It also isn't a question that has an easy answer -- and, indeed, we're clearly on the record advocating for more competition in some markets and standardization in others.  So I thought it might be interesting to explore the arguments for each, and a basic framework for understanding what's likely to make more sense in what situation.
<br /><br />
<b>The argument for standardization</b>: A drawn out standards battle between different systems can often <a href="http://www.techdirt.com/articles/20050823/1146255_F.shtml">seriously harm a market</a>.  First off, it makes it that much more difficult to attract developers to build on your platform, because you have to convince them that it's better than the alternatives.  Standards battles can also scare off customers who are (reasonably) worried about buying into a standard that later loses and being stuck with mostly useless hardware.  Having a standard clearly makes sense when the lack of a standard forces a serious delay in development and adoption.  However, if a fragmented market can stand on its own, standardization doesn't necessarily make as much sense.  Generally, standardization only really makes sense when you have cases of <a href="http://en.wikipedia.org/wiki/Natural_monopoly">natural monopolies</a>, where the cost of duplicated efforts is quite high, such that it becomes quite wasteful and disruptive to allow that duplicated effort to occur.  It's worth noting there are some who believe there's really no such thing as a natural monopoly, but cases such as railways, highways and laying fiber seem pretty convincing.  It's also worth pointing out that the process of agreeing to a single standard is often extremely acrimonious -- as it becomes a "winner take all" market, and no one wants to be on the losing side.  That means some standards battles get dragged out for years, harming everyone in the process.
<br /><br />
<b>The argument for competition</b>: Most of you (hopefully) know this one already.  You don't have to be Adam Smith to recognize that competition tends to drive innovation, as firms compete to out-innovate each other and provide a better and better product that the market is willing to purchase.  Competition is a key driver in innovation and economic growth.  Preventing competition has been known to stifle growth.  It's worth noting, of course, that a fight for "standardization" isn't "anti-competitive."  It's just a question of shifting the competition from being between platforms to being on top of a single platform.  For example, it's good to have competition in who can sell you lamps, but it wouldn't be good to have competition among different types of electric systems with different outlets.  So, we standardize on a single electric system, and it allows all the competition on electric devices on top of it.
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So how do the two square up?  It helps to separate the market into different factors.  First off, standards clearly only make sense when we're talking about some kind of platform on which other applications/business/services are going to be built.  Second, there's the natural monopoly question: how big a disruption does it cause if there are multiple competitors and one fails?  If we had competing highway systems and one had to shut down, leaving rotting highways everywhere, that's a problem.  The third factor is where the biggest economic contribution comes from: the platform or the applications on top of the platform.  If it's the platform, then competition makes sense.  If it's really the applications on top of the platform then it's going to make sense for there to be a standard to let the competition occur on top of the standardized platform.  Finally, it's worth looking at the difficulty for those building the apps/businesses/services on top of platforms to port from and between competing standards.  If it's relatively easy to port from one to another, then there's less of a reason to push for a single platform.
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The video game market really comes down in the middle on some of these factors.  However, in the end, I see little support for the idea of looking for a standardized platform.  The disruption isn't that great to their being multiple platforms out there (not much of a natural monopoly).  The economic impact point may be up for debate, but so far, the two are more intertwined than most people realize, with many consoles sold at a loss with the hope of making it up in selling high margin games.  That makes it difficult to determine how much money <i>really</i> goes towards software and how much is effectively paying for hardware.  The final issue may be the most damning: while porting videogames does take time and effort, and isn't always easy, the cost is relatively low compared to, say, the idea of ripping out your entire electric wiring and replacing it with a new standard.
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In the end, competition is definitely a key component in driving innovation, but it's important to question where that competition should be occurring, and where it's mutually beneficial to have a standard.  It's reasonable that video game developers would favor a single platform to develop on, as it focuses their attention and efforts -- but that doesn't mean it's necessarily best for the overall industry.<br /><br /><a href="http://www.techdirt.com/articles/20080116/005211.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20080116/005211.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20080116/005211.shtml?op=sharethis">Email This Story</a><br />
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<slash:department>or-a-little-of-both?</slash:department>
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<pubDate>Thu, 23 Aug 2007 15:37:00 PDT</pubDate>
<title>EU Tests Out Its New 'Patent Ambush' Antitrust Law On Rambus</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20070823/121611.shtml</link>
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<description><![CDATA[ Rambus has been involved in a whole series of lawsuits concerning its patents.  If you don't recall, the company has been accused of sitting in on meetings for a standards body and then <a href="http://www.techdirt.com/articles/20010626/101245.shtml">modifying its patent applications to cover technology included in the standard</a>.  Of course, once the patents were granted and the standards were set, Rambus basically went after everyone demanding licensing fees.  The case has gone back and forth over the years in courts and in the US Federal Trade Commission -- who ruled that these actions <a href="http://www.techdirt.com/articles/20060802/0825211.shtml">were a violation of antitrust law</a>.  Over in Europe, it seems that officials feel that this is the perfect test case for a new kind of antitrust violation: <a href="http://hosted.ap.org/dynamic/stories/E/EU_RAMBUS_PATENT_AMBUSH?SITE=CADIU&#038;SECTION=HOME&#038;TEMPLATE=DEFAULT">"patent ambush."</a>  It's nice to see regulators realizing that abuse of patents should be considered an antitrust violation.  Hopefully we'll see more of that going forward.  Rambus, of course, claims this is nothing new, but it can't be good for them.  In the meantime, as always when we post about Rambus, we wonder how long it will take for the company's stock holders to <a href="http://www.techdirt.com/articles/20060215/170256.shtml">trash us</a> for daring to question the company.  Last time we wrote something negative about the company we got an email saying that "the authorities" had been alerted to our post.  We wonder if "the authorities" have been alerted about the awful things European Union regulators are saying about Rambus as well.<br /><br /><a href="http://www.techdirt.com/articles/20070823/121611.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20070823/121611.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20070823/121611.shtml?op=sharethis">Email This Story</a><br />
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<slash:department>patent-ambush-indeed</slash:department>
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