patents or open source, are patents good for us?

Patentsor

open source

Think!

Patent

Temporary monopoly

On any inventions, in all fields of technology that are new, inventive

and industrially applicable

New: never disclosed

anywhere in the world

Inventive: not obvious for skilled man

Industrial applicable: can be made or used

in any kind of industry, including agriculture

Excluded as invention:

a) discoveries, scientific theories and mathematical methods;

b) aesthetic creations;c) schemes, rules and methods for

performing mental acts, playing games or doing business, and programs for computers;

d) presentation of information.

Exceptions to patentability

a) Inventions contrary to “ordre public” or morality

b) plant or animal varieties;c) Methods for the treatment of the

human or animal by surgery or therapy and diagnostic methods practised on the human or animal body.

97% of inventions is

junk

Arguments against patents

Patents hinder innovation

Patents destroy wealth

Small innovators are forced out off

the market

Big tech misuses patents to kill

small tech

Patents are granted for anything

Patents suffocate competition

Patents are on the expense of consumer

Data tells us more

Do patents hinder innovation?

1931

1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 19800%

20%

40%

60%

80%

100%

USA television sets

1781

1750 1800 1850 1900 1950 20000

50000

100000

150000

200000

250000

300000

350000

Steam engines in the USA and S-curve fit

1960 1970 1980 1990 2000 2010 2020 20300

100

200

300

400

500

600

Globally installed capacity of photovoltaic cells

[GWp]

Last 10 Years, some 5000 patents have been filed on solar cells

1960 1970 1980 1990 2000 2010 2020 2030 20400

2000

4000

6000

8000

10000

12000

Predicted global electrical power consumption and the installed PV capacity

3,3%

Global Electricity consumption [GW] PV

production [GWp]

2024

Patents do not hinder innovation

Do patents destroy wealth?

0 50000 100000 150000 200000 250000 300000 3500000

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

USA Patents versus wealth

Granted patents

GD

P/ca

p Y2

005

ppp

$

1800

2014

Source: www.gapminder.org

0 10000 20000 30000 40000 50000 60000 700000

5000

10000

15000

20000

25000

30000

35000

40000

NL Patents versus wealth

Granted pantents

GD

P/ca

p Y2

005

ppp

$ 2014

1800

Source: www.gapminder.org

A positive correlation exists between wealth and patents numbers

1855 1865 1875 1885 1895 1905 1915 19252000

2500

3000

3500

4000

4500

5000

5500

6000

6500

7000 GDP/cap in 2005 US$ PPP

Belgium The Netherlands

Germany

Year

2005

US$

GDP

/cap

Source: www.gapminder.org

Patent free era in NL

In the Dutch patent free era, the Netherlands became from

leading in wealth to lagging in wealth, compared to its neighbors whilst they

maintained their patent systems

1500150115021503150415051506150715081509151015111512151315141515151615171518151915201521152215231524152515261527152815291530153115321533153415351536153715381539154015411542154315441545154615471548154915501551155215531554155515561557155815591560156115621563156415651566156715681569157015711572157315741575157615771578157915801581158215831584158515861587158815891590159115921593159415951596159715981599160016011602160316041605160616071608160916101611161216131614161516161617161816191620162116221623162416251626162716281629163016311632163316341635163616371638163916401641164216431644164516461647164816491650165116521653165416551656165716581659166016611662166316641665166616671668166916701671167216731674167516761677167816791680168116821683168416851686168716881689169016911692169316941695169616971698169917001701170217031704170517061707170817091710171117121713171417151716171717181719172017211722172317241725172617271728172917301731173217331734173517361737173817391740174117421743174417451746174717481749175017511752175317541755175617571758175917601761176217631764176517661767176817691770177117721773177417751776177717781779178017811782178317841785178617871788178917901791179217931794179517961797179817991800180118021803180418050

20

40

60

80

100

120

140

NL patents per decade

Zaagmolen1593

1500150115021503150415051506150715081509151015111512151315141515151615171518151915201521152215231524152515261527152815291530153115321533153415351536153715381539154015411542154315441545154615471548154915501551155215531554155515561557155815591560156115621563156415651566156715681569157015711572157315741575157615771578157915801581158215831584158515861587158815891590159115921593159415951596159715981599160016011602160316041605160616071608160916101611161216131614161516161617161816191620162116221623162416251626162716281629163016311632163316341635163616371638163916401641164216431644164516461647164816491650165116521653165416551656165716581659166016611662166316641665166616671668166916701671167216731674167516761677167816791680168116821683168416851686168716881689169016911692169316941695169616971698169917001701170217031704170517061707170817091710171117121713171417151716171717181719172017211722172317241725172617271728172917301731173217331734173517361737173817391740174117421743174417451746174717481749175017511752175317541755175617571758175917601761176217631764176517661767176817691770177117721773177417751776177717781779178017811782178317841785178617871788178917901791179217931794179517961797179817991800180118021803180418050

20

40

60

80

100

120

140

NL patents per decade

Indexed purchasing power soap

Source: The prices of the most important consumer goods, and indices of wages and the cost of living in the western part of the Netherlands, 1450-1800, J. Luiten van Zanden

1500150115021503150415051506150715081509151015111512151315141515151615171518151915201521152215231524152515261527152815291530153115321533153415351536153715381539154015411542154315441545154615471548154915501551155215531554155515561557155815591560156115621563156415651566156715681569157015711572157315741575157615771578157915801581158215831584158515861587158815891590159115921593159415951596159715981599160016011602160316041605160616071608160916101611161216131614161516161617161816191620162116221623162416251626162716281629163016311632163316341635163616371638163916401641164216431644164516461647164816491650165116521653165416551656165716581659166016611662166316641665166616671668166916701671167216731674167516761677167816791680168116821683168416851686168716881689169016911692169316941695169616971698169917001701170217031704170517061707170817091710171117121713171417151716171717181719172017211722172317241725172617271728172917301731173217331734173517361737173817391740174117421743174417451746174717481749175017511752175317541755175617571758175917601761176217631764176517661767176817691770177117721773177417751776177717781779178017811782178317841785178617871788178917901791179217931794179517961797179817991800180118021803180418050

20

40

60

80

100

120

140

NL patents per decade Indexed purchasing power peat

Source: The prices of the most important consumer goods, and indices of wages and the cost of living in the western part of the Netherlands, 1450-1800, J. Luiten van Zanden

1500150115021503150415051506150715081509151015111512151315141515151615171518151915201521152215231524152515261527152815291530153115321533153415351536153715381539154015411542154315441545154615471548154915501551155215531554155515561557155815591560156115621563156415651566156715681569157015711572157315741575157615771578157915801581158215831584158515861587158815891590159115921593159415951596159715981599160016011602160316041605160616071608160916101611161216131614161516161617161816191620162116221623162416251626162716281629163016311632163316341635163616371638163916401641164216431644164516461647164816491650165116521653165416551656165716581659166016611662166316641665166616671668166916701671167216731674167516761677167816791680168116821683168416851686168716881689169016911692169316941695169616971698169917001701170217031704170517061707170817091710171117121713171417151716171717181719172017211722172317241725172617271728172917301731173217331734173517361737173817391740174117421743174417451746174717481749175017511752175317541755175617571758175917601761176217631764176517661767176817691770177117721773177417751776177717781779178017811782178317841785178617871788178917901791179217931794179517961797179817991800180118021803180418050

20

40

60

80

100

120

140

NL patents per decade

Indexed purchasing power pepper

Source: The prices of the most important consumer goods, and indices of wages and the cost of living in the western part of the Netherlands, 1450-1800, J. Luiten van Zanden

The absence of patents appear to destroy wealth

Are small innovators forced

out off the market?

No

1593

1980 1985 1990 1995 2000 2005 2010 2015 20200

50000

100000

150000

200000

250000

By using patents, small innovators can survive, sometimes with a legal

fight.

Does big tech misuse patents to kill small tech?

With the aid of a patent troll, the inventor could reclaim his IP and sell it

for a decent price.

People pay 6-10 €ct more, for

less beschuit

Because of his patent, the inventor could raise license fees

Big tech patents are 150 times more

valuable than small tech patents

In EU, non uses clauses prevents abuse, in USA there is no such relief

system

Non usus: if you don’t practise the invention within 3 years after

grant, you cant stop others anymore, a license is obligatory

by law (Article 57(2) ROW)

NPE’s sitting on their rights doing nothing are not possible in EU, contrary thereto, in the

USA they can (and do sometimes)

Are patents granted for anything?

In the Netherlands they are (since

1995)

66% of USA applications gets granted

50% of EPO applications gets granted

Patents are not granted for anything

Do patents suffocate

competition?

SEP’s are pooled, licenses are given out

under FRAND conditions

SISVEL HOLDS POOLS ON a.o.:

LTE, LTE-A, Wi-Fi, Wireless, MPEG-a, DVB-T, DVB-T2, WSS, DECT, DSL, 802.11 n,

802.11 ac (WLAN MIMO)

Licenses are given out at fixed prices per device in contingents

IP holders are a.o. Phillips, Samsung, Nokia, KPN, TDF,

Orange

SISVEL aggressively

attacks infringers

Paying license fees avoids problems

patents can suffocate competition if

infringed without paid license fees

Are patents on the expense of

consumer?

1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 20200

10

20

30

40

50

60

70

80

90Price of Si PV cell in $/Wp

2004 2006 2008 2010 2012 2014 20160

1

2

3

4

5

36$ct

80$

Patents are on the expense of the consumer, if he

chooses to buy the underlying technology

Patentsor open source

Is at the choice of the

innovator

Discarding the entire patent system, is a bad idea, for

all of us