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Patents
or
open source
Think!
Patent
Temporary
monopoly
On any inventions, in all
fields of technology that are
new, inventive and
industrially applicable
New: never
disclosed
anywhere in the
world
Inventive: not
obvious for
skilled man
Industrial applicable: can
be made or used in any
kind of industry,
including agriculture
Excluded as invention:
a) discoveries, scientific theories and
mathematical methods;
b) aesthetic creations;
c) schemes, rules and methods for performing
mental acts, playing games or doing
business, and programs for computers;
d) presentation of information.
Exceptions to patentability
a) Inventions contrary to “ordre public” or
morality
b) plant or animal varieties;
c) Methods for the treatment of the human or
animal by surgery or therapy and diagnostic
methods practised on the human or animal
body.
97% of
inventions is
junk
Arguments
against patents
Patents hinder
innovation
Patents destroy
wealth
Small innovators
are forced out off
the market
Big tech misuses
patents to kill small
tech
Patents are
granted for
anything
Patents suffocate
competition
Patents are on
the expense of
consumer
Data tells us
more
Do patents hinder
innovation?
1931
0%
20%
40%
60%
80%
100%
1930 1940 1950 1960 1970 1980
USA television sets
1781
0
50000
100000
150000
200000
250000
300000
350000
1750 1800 1850 1900 1950 2000
Steam engines in the USA
and S-curve fit
0
100
200
300
400
500
600
1960 1970 1980 1990 2000 2010 2020 2030
Globally installed capacity of
photovoltaic cells [GWp]
Last 10 Years, some
5000 patents have
been filed on solar
cells
0
2000
4000
6000
8000
10000
12000
14000
16000
1960 1980 2000 2020 2040
Predicted global electrical power consumption and the installed PV capacity
3,3%
Global Electricity
consumption [GW]
PV
production [GW
2024
Patents do not
hinder innovation
Do patents
destroy wealth?
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
0 50000 100000 150000 200000 250000 300000 350000
GDP/capY2005ppp$
Granted patents
USA Patents versus wealth
1800
2014
Source: www.gapminder.org
0
5000
10000
15000
20000
25000
30000
35000
40000
0 10000 20000 30000 40000 50000 60000 70000
GDP/capY2005ppp$
Granted pantents
NL Patents versus wealth
2014
1800
Source: www.gapminder.org
A positive correlation
exists between wealth
and patents numbers
2000
2500
3000
3500
4000
4500
5000
5500
6000
6500
7000
1855 1865 1875 1885 1895 1905 1915 1925
2005US$GDP/cap
Year
GDP/cap in 2005 US$ PPP
Belgium
The Netherlands
Germany
Source: www.gapminder.org
Patent free era in NL
In the Dutch patent free era, the
Netherlands became from leading
in wealth to lagging in wealth,
compared to its neighbors whilst
they maintained their patent
systems
0
20
40
60
80
100
120
140
1500 1600 1700 1800
NL patents per decade
Zaagmolen
1593
0
20
40
60
80
100
120
140
1500 1600 1700 1800
NL patents per decade
Indexed
purchasing
power soap
Source: The prices of the most important consumer goods, and indices of wages and the cost of living in the western part of the Netherlands, 1450-1800, J. Luiten van Zanden
0
20
40
60
80
100
120
140
1500 1600 1700 1800
NL patents per decade
Indexed
purchasing
power peat
Source: The prices of the most important consumer goods, and indices of wages and the cost of living in the western part of the Netherlands, 1450-1800, J. Luiten van Zanden
0
20
40
60
80
100
120
140
1500 1600 1700 1800
NL patents per decade
Indexed
purchasing
power
pepper
Source: The prices of the most important consumer goods, and indices of wages and the cost of living in the western part of the Netherlands, 1450-1800, J. Luiten van Zanden
The absence of
patents appear to
destroy wealth
Are small innovators
forced out off the
market?
No
0
50000
100000
150000
200000
250000
1980 1985 1990 1995 2000 2005 2010 2015 2020
By using patents, small
innovators can survive,
sometimes with a legal
fight.
Does big tech misuse
patents to kill small
tech?
With the aid of a patent troll,
the inventor could reclaim his
IP and sell it for a decent
price.
People pay
6-10 €ct more, for
less beschuit
Because of his patent,
the inventor could raise
license fees
Big tech patents are
150 times more
valuable than small
tech patents
In EU, non uses clauses
prevents abuse, in USA
there is no such relief
system
Non usus: if you don’t practise the
invention within 3 years after grant,
you cant stop others anymore, a
license is obligatory by law (Article
57(2) ROW)
NPE’s sitting on their rights doing
nothing are not possible in EU,
contrary thereto, in the USA they
can (and do sometimes)
Are patents
granted for
anything?
In the Netherlands
they are (since
1995)
66% of USA applications
gets granted
50% of EPO applications
gets granted
Patents are not
granted for
anything
Do patents
suffocate
competition?
SEP’s are pooled,
licenses are given out
under FRAND
conditions
SISVEL HOLDS POOLS ON a.o.:
LTE, LTE-A, Wi-Fi,
Wireless, MPEG-a, DVB-T, DVB-
T2, WSS, DECT, DSL, 802.11 n,
802.11 ac (WLAN MIMO)
Licenses are given
out at fixed prices
per device in
contingents
IP holders are a.o.
Phillips, Samsung,
Nokia, KPN, TDF,
Orange
SISVEL aggressively
attacks infringers
Paying license fees
avoids problems
patents can suffocate
competition if
infringed without paid
license fees
Are patents on
the expense of
consumer?
0
10
20
30
40
50
60
70
80
90
1970 1980 1990 2000 2010 2020
Price of Si PV cell in $/Wp
0
1
2
3
4
5
2000 2005 2010 2015 2020
36$ct
80$
Patents are on the
expense of the
consumer, if he
chooses to buy the
underlying
technology
Patents
or open source
Is at the choice
of the innovator
Discarding the
entire patent
system, is a bad
idea, for all of us
Patents or open source, are patents good for us?

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Patents or open source, are patents good for us?