This video is sponsored by Dashlane. Conveniently store your passwords and get
10% off with the link in the description. In 1997, a guy named Jeffrey Bezos filed US
patent 5960411A, “a method for ordering items over the internet”. Here’s what it is: Instead of adding an
item to your shopping cart and then clicking buy, you’d just click buy. That’s the whole patent. It’s so comically vague because that’s
what makes intellectual property so powerful. The wider the description, the easier it is
to enforce. Just listen to this one: “An apparatus for
use as a toy by an animal, for example, a dog, to either fetch, carry, or chew. Includes a main section with at least one
protrusion extending therefrom that resembles a branch.” That, my friend, is a stick. Both of these are ridiculously broad, but,
unfortunately, that’s not uncommon. What is unique about Amazon’s One-Click
Patent is that they actually use it. Usually these are filed by Non-Practicing
Entities, companies that own intellectual property, but don’t do anything with it. Instead, they make money by suing anyone and
everyone. These two graphs tell the story. First, this is the amount of patent-related
litigation from normal, practicing companies. Year after year, the number stays pretty much
the same. And here are the trolls. Not only are they way more common, but they’ve
rapidly increased in just a few years time. And second, roughly 87% of troll lawsuits
settle before trial. In other words, patent trolls are very common
and very good at what they do. Their strategy is fairly simple: File or buy
as many and as broad of patents as possible, and then find people to sue. Both they and the other company know the cost
of going to trial – hundreds of thousands, or usually, millions of dollars. So, unless both parties are really confident,
they make a deal. The company pays the troll just to leave them
alone, who, by the way, now has even more resources to threaten even more lawsuits. You don’t need much intellectual property
to see how this is a broken system. But the problem is actually much worse than
that. Okay, so, you’ve got the next big idea,
a zero-click, mind-reading buy now button. Here’s what you need to know about patents. To get one, your invention must be novel,
useful, and non-obvious, ya know, like a buy now button which buys…
now. Totally not obvious. Anyway, It also can’t be a law of nature, an abstract
idea, or a nuclear bomb. Sorry! I don’t write the rules. They usually last 20 years, and unlike copyright,
patents are not automatic. In the United States, you must apply to the
Patent and Trademark Office. And so long as your application has a left
margin of two and a half centimeters and its capital letters are at least 0.3175 centimeters
high, it’ll be reviewed by an examiner… with all the speed of the DMV. The process takes about 2 years, but the office does provide patent-themed
Halloween and Valentines Day entertainment while you’re waiting. Seriously. Once your patent is granted, it prevents anyone
else from making the same thing without a license. In other words, it’s a two-decade, government-protected
monopoly. So, why do they exist? The answer you’ve probably heard is pharmaceuticals. Researching and developing a new drug, is,
well, gosh darn expensive. Some say 648 million dollars, others, 2.7
billion. Whatever the number, it’s a lot. Without patents, they say, no company would
spend so much when they could just wait for someone else to, and then steal their idea. Someone could jump in and take all the profit
from the person actually doing the work. Sound familiar, maybe? So, patents are an incentive. And not just to make things you and I want,
but also to explain how they work. Because sharing knowledge is kind of the basis
for civilization. This way, when it expires, others can make
it at a lower cost. Or, that’s the theory. The issue is, patents aren’t always good
explanations. In fact, that’s by design. Because, remember, companies keep them as
vague as possible. Technically patents should be so specific
that a person with “ordinary skill in the art” could reproduce it, but technically
they should also be non-obvious, soo… yeah. The other issue is that patents aren’t the
only option. Google’s search algorithm, WD-40, and Coca-Cola
all famously chose to just keep their mouths shut. Trade secrets do run the risk of being discovered,
but they don’t expire in 20 years and they’re still legally protected. So a smart company asks itself: Can we keep
the secret for 20 years? If not, it should get a patent. But otherwise, it’d be better off staying
quiet. Because of this, patents may not disclose
anything that wouldn’t already be discovered. What isn’t really in question is that they
can be a good incentive. Of course companies are more likely to create
something if it grants them a monopoly. The question is whether it’s worth it. Because during that monopoly, we all pay a
price – the higher cost they can charge with no competition. When your phone costs $100 more, this is annoying. When the World Health Organization estimates
ten million lives could’ve been saved with existing medicines and vaccines, it’s downright
awful. And then there’s the problem of waste. Patents, like any economic system, are a game. And when you add seven billion players, there
are going to be some unintended consequences. The obvious one are the trolls. Their defense is that those who invent something
may not be the best people to sell it. Universities, for example. Lots of research, but Marketing, not so much. So, they say, Non-Practicing Entities buy
these inventions, from, say, a school, and sell them to those who can use it. But ask those buyers and… they shake their
heads. In this survey, 92% of respondents said they
added new products or features from the license zero to ten percent of the time. And they “rarely, if ever prompted the development
of any new products”. In other words, companies had already invented
something and bought the license only to not get sued. Microsoft, for example, takes or took money
from HTC, Samsung, and Apple for patents like scheduling meetings on smartphones. Its phone was, to put it politely, a failure,
but it still collects profit, and on a feature that nobody hardly uses. You might be thinking “So what?”, Who
cares that the world’s richest companies are losing some money? But all these billions of dollars spent on
lawsuits is money not spent developing new products or hiring employees. When Google bought Motorola, largely for its
patents, it spent 12 and a half billion dollars instead of who knows what. This is what I call Patent Theater, In the same way that so much of airport security
is just acting out the motions for little or no benefit, Big companies often file and buy patents not
because they actually need them, but because that’s the game they need to play. It’s not about innovation, it’s about
not getting sued. Chances are any one phone company will violate
another’s patents. But file enough of its own, and it can threaten
a countersuit. It’s mutually assured destruction. It might be better if no-one had them, but
someone does, so everyone has to. While researching this video, I came across
this article titled “The world’s 50 most innovative companies”. It’s just a list of who has the most patents. Of course, number of patents doesn’t really
measure innovation, it measures the, well… number of patents. That probably sounds obvious. But, it shouldn’t be. Their purpose is precisely to increase innovation. This should be an accurate list. It’s not because of all the unnecessary
waste. Worse, there isn’t really anyone to blame. Examiners have to review half a million applications
a year and under pretty stressful circumstances. Mistakes will be made. And companies have to file patents or risk
being targeted. There is a solution to all of this, but that’s
the topic of the next video. And just as patents protect companies from
theft, Today’s sponsor, Dashlane, protects you
from the theft of your online accounts. The problem with passwords is that they’re…
just plain annoying. And if they aren’t, you’re probably not
using a good, strong password. That’s why you need Dashlane, which remembers
and generates passwords for you. Your information is kept secure and hey, it’s
not annoying. Just this year, Facebook, Under Armour, and
British Airways have all had major data breaches. That’s honestly pretty scary. Dashlane encrypts those passwords, scans the
dark web to see if they’re being sold by hackers, and has a built-in VPN. It syncs with all your devices, and you can
get started for free by clicking the link in the description. Plus, new users get 10% off Premium with promo
code “PolyMatter” Thanks to Dashlane for sponsoring this video,
and to you for listening.

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100 thoughts on “The Case Against Patents – Amazon’s 1-Click “Invention””

  1. How the fuck is dashlane supposed to check if your password is on the darkweb without sharing it? They obviously store an unencrypted version in able to search for it. That logic makes no sense and btw Chrome has this built in for FREE.

  2. You seem to forget a very good reason for why patents exist: Preventing reverse engineering.
    I might spend $1M to develop a product. If I place it on the market without a patent, someone may purchase it legally, figure out how I made it, then make their own…for half the price. And not pay me for my effort. Legally.
    I don't think you understand innovation of new goods nearly as well as you think you do.

  3. Open source and "CONDITIONAL" patent left LAWS and capitalism = profits for the original inventor in the form of royalty fees or royalties. China "ONLY CHEATS!" because they study first the original invention, then create a copy of it, put some frivolous innovations into it, and have it "ILLEGALLY PATENTED" (with huge bribes paid to higher officials) "AND THEN USE THEIR NEW ECONOMIC STATUS TO STEAL ALSO THE ORIGINAL PATENT FROM THE ORIGINAL INVENTOR WITH FRIVOLOUS ILLEGAL FAKE LAWSUITS THAT ILLEGALLY WILL ILLEGALLY SUE THE ORIGINAL INVENTOR IF HE OR SHE TRIES TO MANUFACTURE HER ORIGINAL INVENTION BASED ON HIS OR HER ORIGINAL PATENT(S) (ESPECIALLY IF IT IS ALREADY IN THE PUBLIC DOMAIN) IN ORDER TO STEAL THEIR HARD INTELLECTUAL WORKS' FRUITS!

    China installs malware on a lot of corporate and gov't electronics. China also doesn't care about American IP enforcement and reverse engineers lots of things anyway. THIS IS THE ONLY CHINA CAN STEAL AND CHEAT INTELLECTUAL PROPERTY RIGHTS WITH BACKING FROM THE CORRUPT COMMUNIST-SOCIALIST GOVERNMENT OF CHINA.

    Becuase foreign firms have to partner with chinese firms to operate in china, so the chinese firm gets all the data and patented products. THIS IS THE ONLY CHINA CAN STEAL AND CHEAT INTELLECTUAL PROPERTY RIGHTS WITH BACKING FROM THE CORRUPT COMMUNIST-SOCIALIST GOVERNMENT OF CHINA.

    REPLY TO General Von Kek 2 days ago
    King Wiwuz IV Are you that retarted? Check the data for patents, most innovation since the 2000s are done by China.
    DARTHVADER REPLIES TO CHEATING-LYING General Von Kek. Invention is creating something original. Innovation is putting frivolous innovation(s) on the original invention and then use that new economic status and situation to steal all of the original invention from the original inventors from the whole world. Especially creating frivolous and fake lawsuits against the original inventors in order to prevent them from using their own original inventions that are already in the PUBLIC DOMAIN because CHINA ALSO WANTS TO STEAL INVENTIONS THAT ARE ALREADY IN THE PUBLIC DOMAIN FROM ALL PUBLIC DOMAINS ALSO. CHINESE ARE LIARS AND CHEATERS, NOTHING MORE AND NOTHING LESS.

    Major issue with this is that patents were initially designed to benefit engineers, inventors, and scientists who come up with new research. Patents are designed to allow them to profit off of their own discovery. With a patent, other companies that want to use their idea have to go through them, they don't need a product. Your idea breaks the entire point of patents.

  4. I misread the title as "The Case Against PaRents" and was pretty confused as to why the Apple and Samsung logos were in the thumbnail.

  5. Love the videos. They make me feel productive even when while procrastinating. Keep up the good work. To my fellow polies keep learning or procrastinating, it’s probably both

  6. I think the whole process is Asinine. What could we possibly stand to gain worth 20 (Possibly many more) years of an overbearing, government awarded monopoly that we couldn't just figure out without the encumbrance of such prohibitions to information for that span of time? Make no mistake, these laws inhibit progress, they rarely aid it and the way they're written up they could never be anything more than the info politics of democratically inferior, primitive institutions.

    The world has enough Mickey Mouse legislation to go around, this is a side of law I wouldn't miss when it faces hierarchical extinction. These people, they're not trading ideas, they're trading in politics and wealth aggregation, and little else. Begone with them, to the shadows of history.

  7. The solution is to give the people a monopoly on owning and running the economy through their own state that doesn't need to deal with this shit.

    With elected managers subject to immediate recall.
    This would mean there is no need for domestic secrets as long as this system of government is based on unity of action rather than factionalism.

  8. This is why tesla is amazing, tesla doesnt use pattens so other companies can save money buying these pattens and focus on r & d or hiring new people.

  9. Is it time for a second youtube site that is solely educational? Why that? ->

    -this would enable a largescale use of youtube as a means of education.
    -it would espacially empower people in regions where traditional education is scarce
    -it will promote the production of educational videos(thus also fostering youtubes image)
    -create a productive space without distraction of videos that don't facilitate personal growth.

    2018 is a time where the best teachers, the best scientists are at our fingertips. How are we still struggeling to bring education to people? It all depends on the videos that are put on the screen for you.

    I think the step to create a seperate platform where all channels are promoting learning would do immense good. For youtube and for the world. Without any downsides, since all channels still remain on the main page as well. I am no more than a person that has the hope, that this move could be beneficial to all beings. If you agree please spread this thought so it might reach people who are able to put this into practice.
    (To contact me for the more detailed idea: [email protected])

  10. @2:50
    one of the few facts that I do know about Einstein,
    he did work in the patent office,
    which he did express was a source for many of his ideas / thats where he got alot of exposure to ideas/science

  11. Actually came to my mind watching your second video analyst patent trolls. This people are like old school mafia, charging people so that they don’t hurt them.

  12. no patents? then forget about medical research. no new pharmaceuticals since the research
    won't be funded except by government-which will be tax money misspent , skimmed off and otherwise wasted.  
    the only way government makes money is through crime. the free market private sector creates virtually ALL the advances and effective services.

  13. There's actually a disincentive to search for prior patents concerning an idea, because if you then use the patent (even if it is worthless) you're seen as wilfully (rather than inadvertently) abusing the patent, which under US laws carries (I believe) triple damages. As a result, the patent laws wind up working against their supposed core aim of encouraging dissemination and use of prior art.

  14. Nothing show importance of free flow of information like trolling does. Once u start to set up any barriers, those guys appear and rightfully turn everything into dogshit. Copyright is ridiculous concept of people who are too weak or lazy to deal with commercial secrets properly and have no honor to take the hit of bad security. Custodianship of someone else's data holds second place

  15. You can't really keep secret something that can be reverse-engineered. And I suspect pharmaceticals are more often than not reverse-engineereable (is that a word?).

  16. Patent the idea of patenting something with other reason than personal gain.

    7:25 oh so my phone is owned by Google…

  17. China has no patent laws and raping America and the rest of the world by stealing our patents and stuffing it forcefully up to our asses! God shall punish all China for that! And the Chinese HuNan think they have done a great job by pirating other people’s properties!!! I’m angry at China and hope that they get the long end of the stick!!! Inventive Ideas are UNIQUE and priceless and shall not be shared as if it was no worth and shareable like a toilet paper! A toilet paper, WoW 😮 You are very intelligent but Extremely disrespectful; and that is a bad constellation!!! I doubt that you ever change your attitude, because you are also super stubborn!!!

  18. Polymatter: spends 9 minutes talking about how patents aren’t effective
    Polymatter: compares patents to his sponsorship
    What are you trying to say about Dashlane, Polymatter?

  19. IMO, patent trolls are probably guilty of extortion and malicious litigation. By the same token, small, under capitalized companies are often better off not filing for patents if they lack the funds to hire an attorney to defend them when a large corporation decides to steal their ideas. This type of theft can often be accomplished with impunity, because large corporations usually have a whole team of attorneys to literally bankrupt the smaller company with litigation. That's one reason why a handful of big conglomerates owns nearly everything being made, sooner or later.

  20. You seem to patents, but they are not to spark innovation they are to protect innovation. We do need reforms, but I think you video is a bit lopsided.

  21. Or maybe it's time to start being choosy about what patents can be filed. 500,00 patents of "innovation"? Please. Most of these patents aren't even worth going over after the first sentence. They really ought to audit the required amount of R&D they actually spent for starters.

  22. Amazon was soooo cheap back in the day. Its different now. I actually started going out again due to it.

  23. There is no case against patents, innovation is built upon innovation. If you own the original patents, there's is nothing other people can do to innovate but to acquire a license. Amazon just got the best patent it could, one that defines online retail to its core. That's it, it's an incentive.

  24. There should be legislation to identify patent trolls that comes with the death penalty for fraudulent suits

  25. Very good video. The problem of criminally incompetent (or corrupt) patent examiners (you say "errors happen"; granting a patent to a stick cannot be called an error) is one side of the medal; justice system tuned so that the side with deeper pockets is virtually guaranteed to win is another. And the American system drags the world down with it.

  26. Patents are motivated by moral necessity, not economic incentive. It's wrong to steal someone else's idea, so there should be a system to prevent or punish it.

  27. Companies can lose their IP if they don't protect it. By the same logic companies not actively using their patent solution should lose their rights to it.

  28. "or a nuclear bomb"
    I think it can't be any kind of highly dangerous thing. Explosives in general are not patented, if I recall correctly

  29. Ideas are not as easy come as most people think. Copy is so easy that new ideas may not come. So it is the best incentive… to think and think and not just copy and claim being better for copying.

  30. This is absurd – there is a huge body of patent law that has been dealing with these issues for centuries, and as a lawyer, I can tell you that the case law precedents and courts do a good job preventing such abuses. Now you could make the case that the prevailing party should always get their attorney's fees paid by the loser to prevent such abuses, but not eliminating patent laws, which are extremely useful for encouraging innovation and R&D. And it's not "two decades" – it's usually 7 years, but depending upon the item type, can be longer, up to 14 years or so – so why are you lying?

  31. This video is 100% dumb and bias. and come from a person or organization who contribute nothing to invention. Just like a loser in the game that don;t know how to invent and allow themself to legally copy other, such a loser mindset.
    – everyone can challenge a patent, that meant you can start making whatever product that has a patent, and go to the court and fight in the court that the patent is lacking patenability. so actually not the patent that stop someone from making the product, it's the court that actually does.
    – patent does protect all type of inventions, from a simple product like sticky note, to paper clip, not just drug companies. you all can see from his argument that he tries to ignore the fact that patent protect good invention and make patent look bad. he is a loser who doesn't know how to invent.

  32. in case if you are interested guys this is a good video that compares Samsung vs Appel
    The iPhone 11 pro vs note 10+, who is gonna get to your heart?
    https://www.youtube.com/watch?v=gW5jcqLGkRI

  33. why not just have countries research new pharmaceuticals instead of private companies?
    that's how i thought the case was
    but anyway then you won't need patents (for medicine, anyway)

  34. So a troll buys or invents a patent in hopes of going out and suing someone else for using THE idea. What a great job and contribution to society.

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