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Mises Economics Blog

Monsanto v. Google on Patent Reform

March 5, 2009 11:08 AM by Stephan Kinsella (Archive)

In this post, Monsanto's General Counsel disagrees with Google's Head of Patents and General Counsel, who had complained about the risks companies like Google face from huge damage awards in patent lawsuits.

I am so tired of patent lawyers and companies with vested interests making the tired old argument that we should not "weaken" patent protection because it's needed to promote and protect innovation--without ever once even alluding to the fact that these purported benefits have an accompanying cost, much less demonstrating that the cost is worth the benefit received. (See my There's No Such Thing as a Free Patent; What are the Costs of the Patent System?)

I'd much prefer simple, honest calls for protectionism: Monsanto wants patent protection to remain strong, because they think it benefits their own company--regardless of the overall effects or costs on other companies or the economy as a whole. Fine, an honest plea for redistribution of wealth.

Note how Monsant just brushes off Google's costs and fears:

"I respectfully disagree with the recent blog post by Google's Head of Patents and General Counsel, commenting on the perceived risks from damage awards in patent cases. Monsanto has faced billion dollar damage claims as a wrongly sued patent defendant and also knows the true benefits from avoiding the encouragement of willful infringement based on a smaller party's calculated gain in the face of limited risk of a meaningful award of damages if infringement is established. With full knowledge of all these issues and our substantial alignment with Google and the information technology industry over the legitimate need to curtail patent trolls and a myriad of other concerns - we encourage thoughtful reform."

Amazing that he just says he "disagrees" with Google's perception of risks from high damage awards in patent cases--even as it admits Monsanto has faced billion dollar damage claims in wrongful patent suits. Does it occur to this gentleman that perhaps not every company is comfortable facing the risk of wrongful billion dollar patent claims?

Bookmark/Share | Comments (11)

Comments (11)

  • Silas Barta

    @Stephan_Kinsella: When was the last time you mentioned the benefits of property rights *and* also added a caveate about the accompanying costs?

    And can anyone imagine Stephan_Kinsella ridiculing someone for arguing that, "Yes, there are dangers from frivolous lawsuits -- I've been a target of them myself -- but even knowing this, I support property rights."

    Didn't think so.

    Published: March 5, 2009 11:50 AM

  • scineram

    Can you imagine a cyberstalker repeating the same old irrelevant point over and over again?

    Published: March 5, 2009 1:24 PM

  • J Cortez

    I saw the Kinsella post and thought, I wonder if his serial stalker, Silas Barta, will make an appearance within 3 or 5 posts?

    Published: March 5, 2009 2:12 PM

  • Andras

    @Scineram & J Cortez,
    That's the way guys, just ignore Silas' points.
    Never mind that Kinsella keeps pulling a Goebbels on IP.

    Published: March 5, 2009 2:37 PM

  • Taras Smereka

    Physical property does not have the kind of protection costs that IP does. I do not have to go to an external institution to prove that my head phones are mine, and then go around looking at other people's headphones to make sure they are not mine or similar to mine and press legal action against them if they are. On the other hand, Apple does search for and go after anything similar to an I-pod or one of its services or components and incurs huge costs doing so just so someone else cannot get a patent and do the same thing to them.

    Published: March 5, 2009 3:08 PM

  • Egosumabbas

    Since we're talking Monsato here, wouldn't Silas be a cereal killer?

    Also, who's Stephen Underscore Kinsella? Any relation to Dr. Kinsella?

    Published: March 5, 2009 3:40 PM

  • Andras

    @Taras Smereka: "Physical property does not have the kind of protection costs that IP does."

    Just look at the middle east where every parcel of land is a cause for war. The cost of IP is negligible to that. Besides, you don't expect any innovation there. Here, in a well established system and under more peaceful conditions still have title offices and lawsuites associated with land, cost of which is quite considerable when compared to the cost of an average patent.

    Published: March 5, 2009 4:42 PM

  • SailDog

    Monsanto is a corporate vandal. It, its technology and above all its patents on genes have done a massive disservice to humanity and caused untold grief.

    Published: March 5, 2009 7:58 PM

  • Small Software Company in Favour of Software Patents

    the mess with software patents is that small companies don't stand much of a chance anymore against behemoths such as the ones behind this latest reform push - Microsoft&Google. Small companies are overwhelmingly the ones doing the innovation but yet when approach large companies have the door slammed in their faces.

    Patent reform should level the playing field away from the large software companies and back towards the little guy. IN COMPARISON to how often the little guy gets screwed - cases like NTP vs RIM are extremely rare.

    As we continue this trend to weaken software patents will just discourage investors and inventors from investing their time&money in innovating, and instead more and more towards copying competitors innovations.

    Published: March 6, 2009 4:48 PM

  • pat

    seems like typical corporate strategy is behind this reform - increase profits. Software companies would love nothing more than be able to remove their R&D, then monitor competitor products or startups, and copy-paste best stuff by outsourcing it to China/India.

    I believe in the end both Obama & Congress will see through this propaganda. "Patent Fairness" my ass.

    Published: March 6, 2009 4:55 PM

  • Indepedent Inventor

    Some interesting facts:

    # “[T]here is no explosion in patent litigation. In 1993, lawsuits were 1.45% of patents granted. In 2007, lawsuits were 1.48% of patents granted. The number fluctuates from year to year, but it has never indicated a system out of control. (Source: USPTO Annual Reports, Federal Judicial Statistics)”

    # “[T]here is no explosion in patent damage awards. Adjusting for inflation, the median annual patent damages award has actually dropped slightly over the last 13 years. In constant dollars, the median was $3.9 million from 1995 through 2000, and $3.8 million from 2001 through 2007. (Source: 2008 Patent Litigation Study, PriceWaterhouseCoopers.)”

    Published: March 6, 2009 5:02 PM

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