Software Patents Jules Theeuwes University of Amsterdam

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Presentation transcript:

Software Patents Jules Theeuwes University of Amsterdam Scientific Council for Government Policies Open Forum on Draft SPLT Geneva, Friday, March 3, 2006

Topics Dutch position on software patents Economic Analysis of Patent Law Different Life for Software Patents? Evaluation

Dutch position on software patents Same regime as other patents “Socially acceptable” No trivial patents Doubts about business methods Stress interoperability Level playing field (SME)

Economic analysis of patent life Balance between benefits and cost to society Benefits: More invention, creativity, R&D But at decreasing rate over time Costs Monopoly losses Limits to further developments At an increasing rate over time

Costs and benefits of patent life € MSC MSB T* Patent Life (years)

Different life for software patents? Returns to scale kick in immediately Exclusive rights on standards very costly Relation to innovation is maybe weak Patent battle: costly equilibrium

Cost of being different More transaction costs More confusion in the courts Substitution to computer implemented inventions (hardware)

Conclusions Take a second look at Dutch position Do cost benefit analysis