I wrote a few years ago about the reality of big companies stifling competition. At the time I sited “Napster Patents and the Law” as the obvious example. The recent article in The Age, “Patently Absurd”, Richard Stallman, echoes my sentiments.

Some key points I have come across:

1.The movie industry that spawned in LA in the early 1900’s did so as a response to the patent Thomas Edison had in the New York area. Irony is, of course, that they are the ones now howling the loudest.

2.2004 study of Linux Kernel of the GNU/Linux OS found that it infringed on 283 different software patents.

Interestingly technologies that were never patented that delivered enormous benefit to our planet:

1. The railway track.
2. The novel (book).
3. TCP/IP (internet protocols).
4. The Printing press.

There are many more!

Big firms engaged in the provision of services or intangible products (programs) know that the balance sheet is an illusion at best. The real and only asset they have is the willingness of their people to continue to collaborate, spawn ideas and new products/services.

I’m not suggesting a conspiracy BUT businesses foundations are firmly based on its ability to manage risk. Business does not like uncertainty. In financial terms, businesses use hedging strategies to protect themselves.

What follows (and I quote Mr John Warkentin) “they circle the wagons tighter and tighter”; this is not a strategy, it’s a knee jerk reaction.

I also suggest that courts are not exactly on board either with respect to what is necessary for innovation to prosper in our community. As described in this month’s “Economist” (July 2-8, P133), patent copyright protection laws have been amended from 28 years to 95 (Mickey Mouse ©) and I quote, “It makes no sense. Copyright was originally intended to encourage publication by granting publishers a temporary monopoly on works so they could earn on their investment ….” He goes on to say that, “due to distribution of works being much cheaper ….. publishing should therefore need fewer, not more property rights to protect their investment. Technology has tipped the balance in favour of the public domain”.

Absolutely right on!