FtcEn

US Federal Trade Commission (FTC), Software Patents and Information Infrastructure

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News and Chronology

Outline

The FTC is an independent governmental agency of the United States of America, with 5 commissioners appointed for a term of .. years by ...

Charged with securing free competition and investigating anti-competitive behaviour.

Has recently held hearings and reported about problems with the patent system, especially in the area of software and business methods.

Industries

Computer Hardware Industries, including Semiconductors

from the Conclusion (Chapter 3, IV.G page 152):

Panelists in the hardware and semiconductor industries emphasized competition as a driver of innovation. Trade secret protection also contributes to innovation in these industries. Testimony regarding the role of patents was mixed. The record generally corresponded with the results obtained by Professors Cohen, Nelson, and Walsh in their business survey of appropriability mechanisms for firms in the United States: the semiconductor industry was among the least reliant on patents to appropriate returns on investment in R&D. [281] ...

The hearing record highlighted many of the issues that economists suggested might arise in contexts that involve cumulative innovation and a multiplicity of patents. Specifically, the participants from these industries confirmed a trend toward defensive patenting and stated that patents can deter innovation:

Panelists also observed that various patent licensing arrangements - cross-licensing, patent pools, and the licensing requirements of standard setting organizations - have helped to mitigate the potential harm to innovation caused by patent thickets.

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