Legal Issues

by Mike Masnick


Filed Under:
hoarding, patents

Companies:
microsoft



Microsoft Hoarding Patents Like They're Going Out Of Fashion

from the 200-here,-200-there...-soon-you're-talking-about-real-innovation dept

A few years back, Microsoft decided to shift its strategy on software patents. The contrast in what Microsoft was saying publicly about patents was stark:
Brad Smith, Microsoft general counsel, 2007: "Protection for software patents and other intellectual property is essential to maintaining the incentives that encourage and underwrite technological breakthroughs. In every industry, patents provide the legal foundation for innovation. The ensuing legal disputes may be messy, but protection is no less necessary, even so."

Bill Gates, Microsoft CEO, 1991: "If people had understood how patents would be granted when most of today's ideas were invented and had taken out patents, the industry would be at a complete standstill today... A future start-up with no patents of its own will be forced to pay whatever price the giants choose to impose."
If you needed any proof that Microsoft has shifted from a "young company innovates" to an "old company litigates" stance, just take a look at the massive ramp up in patents awarded to Microsoft over the last decade and a half. It's been steady growth, with a massive leap in the past two years.

Every week, if you follow patents granted to Microsoft you see huge numbers. In the past four weeks alone, Microsoft has been granted 49 patents (June 24), 44 patents (June 17), 42 patents (June 10) and 76 patents (June 3). That's 211 patents this month alone. Compare that to a company like Google, who was granted a grand total of 7 patents in June.

The patent system was designed to award incentives in the rarest of circumstances -- when the free market alone wouldn't provide the incentives necessary to bring a technology forward. When a single company is getting over 200 patents a month, the system isn't functioning as intended. It's not an incentive to innovation. It's a tax on innovation.

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  1. identicon
    mrshl, 26 Jun 2008 @ 11:06am

    I'm with anonymous. I've not seen much of an effort on Microsoft's part to aggressively litigate its patent holdings. It seems like they're using patents as a shield rather than a sword, and with an eye towards cross-licensing agreements with peers.

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