Software Patents, Incumbents, and Entry

Software patents have been controversial since the days when "software" referred to the crude programs that came free with an IBM mainframe. This Article examines the relation between patents and the different business models used by firms in the software industry. The role of patents has...

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Bibliographic Details
Published in:Texas law review 2007-06, Vol.85 (7), p.1579
Main Authors: Allison, John R, Dunn, Abe, Mann, Ronald J
Format: Article
Language:English
Subjects:
Business models
Competition
Incumbency
Intellectual property
Inventors
Law
Litigation
Market positioning
Product lines
R&D
Reforms
Research & development
Research & development expenditures
Software industry
Studies
Supreme Court decisions
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Summary:Software patents have been controversial since the days when "software" referred to the crude programs that came free with an IBM mainframe. This Article examines the relation between patents and the different business models used by firms in the software industry. The role of patents has changed dramatically from the mid-1960s to the present. In the mid-1960s, patents only had value for firms hoping to challenge IBM's dominance in the production of computers and software. By the twenty-first century, in contrast, the industry has matured into a complex pattern, with at least four distinct groups, each with a different relation to the patent system. Another important area likely to see reform is the topic of patent quality. The most prominent topic for debate has been the need for litigation reform. Limitations on the availability of injunctive relief have appeared in recent patent reform bills and were urged upon the Supreme Court in eBay Inc v. MercExchange LLC.
ISSN:0040-4411
1942-857X