August1991 Posted December 31, 2011 Report Share Posted December 31, 2011 (edited) Because others can use the technology if they pay to license it from the patent holder.True, but cybercoma I think that you miss the subtlety of what is happening.Cartels are typically based on controlling quantity sales, in a verifiable way. (Think OPEC.) If Samsung and Sharp have cross-patents, then they must pay each other patent fees based on screens sold. Cross-patents are a legal way to ensure cartel compliance. A small "boutique" maker of guitar amps will design and build an amplifier that uses circuits that date back to the 1930's and 40's. One day he's shocked to get a letter from a very large manufacturer, whom I shall not name. It will be from their lawyers, claiming patent infringement and threatening to sue unless he stops production immediately!WB, you describe "ambulance chasing". It happens, and it is increasingly a problem. There are companies that simply buy patents with the intention of suing other companies. It is like a wealthy family (eg. the Eatons) and lawyers arguing over a will. I agree that when a patent is issued, there should be more care in deciding what the owner owns. ---- Nevertheless, I largely don't care about these examples of collusion - or rent-seeking. I fear far more abuse of State power. In this 21st century, surely we need more than a Left/Right (in 19th century terms) view of government. Edited December 31, 2011 by August1991 Quote Link to comment Share on other sites More sharing options...
Wild Bill Posted December 31, 2011 Report Share Posted December 31, 2011 WB, you describe "ambulance chasing". It happens, and it is increasingly a problem. There are companies that simply buy patents with the intention of suing other companies. It is like a wealthy family (eg. the Eatons) and lawyers arguing over a will. I agree that when a patent is issued, there should be more care in deciding what the owner owns. ---- Nevertheless, I largely don't care about these examples of collusion - or rent-seeking. I fear far more abuse of State power. Not really ambulance chasing, August. In my example a larger company applied for and received a patent which was a duplicate of something patented over 75 years ago and long since passed into public domain. They then threatened up and coming competition, knowing that if it ever went to court their patent would be found to be bogus but confident that they could make it more expensive than the "little guy" could afford to fight. However, I agree with you that we should all fear government involvement. People still cheer today at the fact the Rockefeller Standard Oil company was broken up as a monopoly, by the Anti-Trust Act. Nobody ever noticed that when the dust settled the price of gasoline was MORE expensive than before the forced breakup! Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.