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Saturday, August 25, 2012

Dangerous Precedent: Patenting Cool

Apple vs. Samsung proves that we don't have anywhere close to a free market economy.   We have an economy that has a lot of the negative elements of one: greed and corruption, and an economy that has taken away the ability to have the positive elements: namely, competition.

When you can patent a look, a feel, a size dimension... it erodes competition.   You are eliminating the rights of companies to learn and imitate, which in reality is a much more powerful force than to innovate.   Innovations are a once in a generation find most of the time.   And the catalyst for them are usually not monetary gain - but passion.  Jobs and Wozniak innovated because they were passionate.  Imitation allows companies to learn from each other, and to pass that learning on the customers in the form of lower prices.   Imitation is not just a sufficient condition for competition, it is a necessary one.   When the system takes even the most basic form of imitation away from companies, it takes away the positive power of markets.

If you own Apple stock, you should be happy, but if you own stock in the American dream, you should be very afraid.

8 comments:

jim rogers farmland said...

When it comes to the actual product, would still take the Galaxy S3

Erectile Dysfunction Information said...

Apple Inc. v. Samsung Electronics Co., Ltd. was the first of a series of ongoing lawsuits between Apple Inc. and Samsung Electronics regarding the design of smartphones and tablet computers; between them, the companies made more than half of smartphones sold worldwide as of July 2012. In the spring of 2011, Apple began litigating against Samsung in patent infringement suits, while Apple and Motorola Mobility were already engaged in a patent war on several fronts. Apple's multinational litigation over technology patents became known as part of the mobile device patent wars: extensive litigation in fierce competition in the global market for consumer mobile communications.

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