I think I agree with you, but I'm not so sure on the difficulties of reverse engineering. Small electronics are a good example to both our points; once a new d

I think I agree with you, but I'm not so sure on the difficulties of reverse engineering. Small electronics are a good example to both our points; once a new device hits a factory in china it's as good as pirated (sometimes it's pirated in the same factory after hours!), but that hasn't terribly hurt the companies cranking out cheap USB drives, and companies like Apple have just moved way the up value chain. I do think they have significant use for things like engines and heavy equipment, where (everything but the metallurgy) is reversible, but they take $BN investments. Software patents (and really all 'business method') patents are total trash, if only because the USPTO can't possibly keep up with the pace, so people get patents for linked lists (in the 90s!) and shopping carts and such.