Editorial
Patently Ridiculous

Published: March 22, 2006

Something has gone very wrong with the United States patent system.

Americans think of the granting of patents as a benevolent process
that lets inventors enjoy the fruits of their hard work and
innovations. But times have changed. The definition of what is
patentable has slowly evolved to include business practices and broad
ideas. The fact that the Smucker's company went to court over patents
on peanut butter and jelly sandwiches might have provoked chuckles.
But it became a symbol of a system gone awry.

Technological advances raise new questions with each passing year.
Should genes be patentable? What about life forms? The high-tech and
pharmaceutical industries find themselves at odds on reform because
patents affect their businesses so differently. The understaffed
Patent and Trademark Office needs to draw the line between a real
innovation and an obvious concept that should be freely available as
a building block for future generations of creative thinkers.

Meanwhile, profiteers, including lawyers and hedge funds, have turned
the very purpose of patent rights - to encourage people to invent and
produce - on its head, using them to tax, blackmail and even shut
down productive companies unless they pay high enough ransoms. These
so-called patent trolls have emerged as the villains in this
intellectual property debate.

The possibility of this sort of abuse is inherent in the concept of
patents, which in this country allow no one to produce or sell a
patented product for up to 20 years without a license from the patent
holder. Our nation's founders considered intellectual property
important enough to include in the Constitution, but did not
establish the system for the sake of the inventor. It exists for the
sake of society, or, as it says in the Constitution, "to promote the
progress of science and the useful arts."

Now the pendulum has swung so far in the direction of the patent
holder that many experts say we are not only restricting competition,
but discouraging research and innovation as well. More patents are
slipping through that are not new, like the peanut butter and jelly
sandwich, or that should be obvious, like the migration of a simple
business practice onto the Internet or a mobile device.

The problem lies not just with the short-staffed patent office, but
also with the courts. The ease with which patent holders can get an
injunction to shut down a thriving business means that many companies
are quietly paying rather than fighting.

The recent threat that BlackBerry service might be shut down by an
injunction caught everyone's attention. The patent office found that
the three disputed patents should not have been granted in the case
of the BlackBerry, a popular wireless communications device. Yet
Research in Motion, the company that makes it, settled for a
staggering $612.5 million to avoid an injunction.

The Supreme Court now appears ready to weigh in and - we hope -
restore some sanity to the system. Yesterday the court heard
arguments on whether the patent for a blood test for a vitamin
deficiency was so broadly construed that it included a natural
process of the human body and the idea of how to interpret it. Such a
patent could prevent other inventors from developing new and better
tests. The court will also hear arguments next week in a case
attacking eBay, the global marketplace.

The court will not be able to solve the problem by itself, no matter
how wise its ultimate rulings. The patent office, which handles three
times as many applications as it did in 1985, has to be upgraded to
meet the 21st century. There is legislation in the House to address
that issue, and it needs to be taken up. By giving other people or
companies the right to submit documentation before patents are
granted and to challenge decisions, patents' quality could be
improved and the courthouse avoided.
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