Friday, February 23, 2007

Pass the patents, please

If you are into Wi-Fi or WiMax get ready to start writing some checks to Mosaid Technologies Inc. in Ottawa. The company just bought Agere's patents in these areas for as much as $70 million or twenty percent of the royalties on an ongoing basis, calculated at roughly $5 million a year.

Excuse me for farting in church, but I thought the patent business was set up to reward and encourage innovators to keep doing their good work. Deals like this—and whole businesses based on them by companies like Patriot Scientific—make me feel like lots of people are getting ripped off along the line.

Millions and millions of dollars a year with a minority, if any, of it going to the actual inventors. Makes me ill.

1 comment:

Anonymous said...

the inventors get their money, who do you think sells the rights to the patents?
Patriot Scientific paid the inventors, these companies actually help the inventors, they are able to keep people from coming in and ripping of their work like in the case of Patriot, hundreds of companies were ripping off the patents and so the company comes along and buys the patents and gets the money owed and in turn pays the inventors for the patents
how does the right to sell your intellectual property discourage people from inventing? it doesnt it actually encourages it because they know they can make a lot of money off of these without having to watch over the patents and do the leg work
sure the company will make more in the long run than they pay out to the inventor, but the inventor doesnt have to do any of the work in watching over them, all he does is sign over the rights and collect a paycheck, the difference is a bit of work and either 40 millioin or 100 million dollars, when 10 million is enough to be happy for the rest of your life