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Honestly, I think the best way to get rid of this nonsense, keeping everyone happy, is to allow patents but to enforce a "profit cap". Basically, if an entity
by yazaddaruvala 12y ago
Honestly, I think the best way to get rid of this nonsense, keeping everyone happy, is to allow patents but to enforce a "profit cap".
Basically, if an entity has invested $X into RND for patent Y, then patent Y should be valid until some $(Z*X) has been earned by the entity. Where Z is some constant; or stepped like tax brackets.
Example: A company develops some new software: it cost $500,000 of Engineering effort. They are awarded a patent. The patent should be valid until that company has earned $5 million (Z=10; ie 1000% ROI).
Example: A company develops some new drug: it cost $5,000,000,000 for RND. They are awarded a patent. The patent should be valid until that company has earned $50 Billion (Z=10; ie 1000% ROI).
I agree it may be hard to prove "amount spent on patent" or "profit earned from patent". However, at least to me, it seems as hard as the IRS auditing a company's taxes, or as hard as auditing a public companies quarterly financial disclosures.
- eCa 12y agoI think any such scheme should be based on revenue rather than profit, or else Hollywood accounting[1] might be encouraged. [1] http://en.wikipedia.org/wiki/Hollywood_accounting http://en.wikipedia.org/wiki/Hollywood_accounting