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Monday, January 30, 2012

Libertarians and IP

[Warning - random post on Legal Theory. This post could be a lot longer, but I have decided to break it into parts so that it is a bit more manageable for myself. ]

I have noticed a general upswing in the amount of Libertarian bloggers (and Neo-Liberal ones too) who have decided to come out on the negative side of general IP rights and protections.  While some of this is merely band-wagoning after the SOPA debacle, I think some of it comes from the general Libertarian concept that the enforcement of property (the tangible type) rights is the only reasonable use of governmental authority.

To avoid mis-quoting anyone, I will generally surmize the concept behind the Libertarnian objection to IP (as I understand it). This is going to be necessarily broad, so if you want to know what your favoriate Ron Paul Voter thinks, I suggest you look here, and here.

In general the Libertarian theory is more easily illustrated by the following theoretical.

Alice writes a piece of music and performs it to her own enjoyment in her yard. Rob, her next door neighbor, without trespassing, records the performance and uploads it to a file sharing site. Jim, a creative advertising executive, downloads the recording and uses it in a Super Bowl commercial. The commercial earns Jim wide acclaim, recognition and untold riches. Alice does not get any money or recognition. 

According to Libertarian theories, this is a perfectly acceptable outcome (if not the preferable one).  The argument underlying why this is O.K. is that Alice has never been deprived of her rights in the use and enjoyment of her property.  All that has been "misappropriated" is Alice's potential future ownership in the profits that Jim would have had to pay her in a regime where the government mediates these sorts of transactions. 

However, the Libertarian argument fails when you consider why you have a regime of Intellectual Property protection in the first place. Now, we could have a huge conversation on the dichotomy of the Moral vs. Economic Theory of Intellectual Property, but that is for another blog post.  Safe to say that the Constitution (Libertarians love the Constitution) spells out a moral theory of Intellectual Property.
   
   Article I, Section 8, Clause 8 of the United States Constitution empowers Congress:
   To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries. 

By engaging in the "promotion" of Progress, Congress and the framers have set themselves a moral task that can not be easily superseded by claiming that the economics of "progress" are such that those rights should be limited to that which is tangible. The argument should never be focused on the "economic" rights of the IP holder, they are ancillary to the issue.  The government is charged with "progress";  how we as an economic and political system allow for maximization of progress, is tangential to the original goal. For example, if as a society, we decided that all musicians should be put on government stipend, then the original framers intent could still be met. Arguing that "progress" is met by not "promoting" is a laughable on its face, and clearly not borne out in reality. 

Libertarians run up against the fundamental problem that capitalism, practiced in the U.S. in the early 21st Century, requires that IP be priced in the market place. Destroying the pricing mechanism, without providing an alternative mechanism for "promoting" the arts and science yields only what Ayn Rand called "Moochers".  A society of takers, who, because there is no way to feed themselves from the sweat of their intellectual labors, find themselves shelving the potential of great work, because they live in a society that doesn't value it. That society asks people to create for the pure enjoyment of it, while also having a day job. There is a reason why this system does not work well. In order to re-order a system, people should at least acknowledged why the system was erected in the first place. As GK Chesterton noted, "one should know why a fence has been erected before one tears it down."




Jordan Garner

Sunday, January 29, 2012

The Future

this sign should have more info
If only it were this easy

You will notice in the future that I will be putting forward some pretty random, reckless, speculative legal theorizing.  There is a point to this beyond satisfying my desire to investigate future legal developments that may never occur.  

I have a general theory about the future of Intellectual Property and how society will alter, and nurture the concept. Unfortunately, my overall thesis is a bit broad for this format.  Even more unfortunately, I am pretty sure I couldn’t convince anyone to pay me hash it out in one sitting.  Therefore, I have decided to use this forum to piece the concepts together and flesh out the ideas.  Eventually, if I like where I went, I might publish them all together as an ebook or something similar.

I will try to preface those posts with some sort of headline that tells the uninterested that they are about to be subject to some random dissertation concerning Economic Theory of Patents, Molecular manufacturing, Time Dilation and the Patent Office and why super villains must have great in -house counsel.



Jordan Garner


[Ed. Edited for random grammatical errors]

Tuesday, January 24, 2012

Start-up Ecosystems

startup-ecosystem-infographic


As anyone who has read this blog (all 3 of you) know, I love ( more in the Storgian, as opposed to Erotic sense) infographics. It is an outgrowth of a background in Bioinformatics and a general appreciation of good graphic design. So what? All of this is just a haphazard way to introduce another nice infographic that I found the other day.

While I very much like the presentation found here, I take issue with the lack of attorney representation. Of all the people that Start-up founders love to hate, lawyers and especially IP attorneys, are in contention for the top spot.  This is in part due to a justifiable apprehension of the dreaded "Cease and Deist" letter.  However, I think it is also due to a lack of understanding about IP in general. I once spoke to a founder who told me "I don't want to deal with patents because it is too hard to know what's out there and who owns it".

While this may have been true a decade ago, the internet has vastly lowered the cost of entry into the Patent Searching game. Simple patent searches are key to a Founders due diligence. Anyone who wants to get cash from a venture capital firm should know before hand how to answer the question "does this infringe someone else's IP". It is essential to know the space you are working in, not only to know who your challengers are, but also who your investors might be. A patent search can let you find companies and individuals that are operating in the space.  Armed with this knowledge, you can track down investors who understand your technology and want to be a part of it.


Jordan G. Garner 
jgarner@leasonellis.com













Source: Udemy Blog

Thursday, January 19, 2012

Trademark Scams

The internet is full of scams, scammers, hackers and Nigerian Princes who are only inches away from giving you 10% of billions in unclaimed Federal Government cash and Russian Women who won't care if you are an unemployed baby-boomer living in your son's basement with an infectious skin condition. They love you, and all they want is for you to send them a bit of money.

IP is not immune to these fishing lures deployed by various shadowy groups bent on bilking you out of your hard earned money.  Recently, a client of mine received a letter, and invoice, purporting to be the "Register of International Patents and Trademarks (I am loath to link to them, but be forewarned- www.patent-online.org). I am not sure what tipped my client off to the scammy nature of the communication. Was it the fact that the "Office" was located in Slovakia? Or that the Bank transfer was to a P.O. Box in Austria? Or is it the fine print that states that "this is not a registration by a government organization." Why would the "International Patent Office" be a governmental organization, that is just crazy talk.  Maybe it is the fact that the invoice changes on every page?

This is nothing new. The publishing of Trademarks by the USPTO is done so that legitimate concerns by other users of similar marks can be addressed.  Unfortunately this means that sometimes unscrupulous people can try to take advantage by using a bit of public information and an official sounding name.

Well, if you haven't figured it out by now, these guys are a scam.  While you can get an internationally recognized Trademark, you must go through the Madrid Protocol Process provided by the World Intellectual Property Organization (which, surprise, surprise, is a international governmental origination). As I have stated previously, Trademark Rights are the first thing that most Start-ups and small business should focus on. Your branding is your identity, and you should take seriously the protection of that identity. Let the Twitter situations be a learning experience. While it might sound self-serving, you should always conduct your Trademark Matters through a qualified IP attorney (i.e. someone who has done this before and knows what they are doing).  Definitely what you shouldn't do is pay money to Eastern European scammers in the hopes that you will secure your rights on the cheap.

For you own research, I have produced the redacted letter that my client received. The prices and invoices are so wildly inflated, relative to what a trademark filing normally costs, as to be laughable.  If you have recently filed for a Trademark, please do not fall for this. If you have questions about internationally filing Trademarks, then consult your IP attorney. If they are too busy on the golf course, contact me. What ever you do, don't wire 2800.00USD to Bratislava, you won't even get a photo of a nice Russian Girl who loves you in return.


Bogu Tm Bills Confidential 1

Wednesday, January 18, 2012

Knowledge Black Out due to SOPA

Both Wikipedia and Reddit (sources of countless knowledge and time wasting - not necessarily in that order) are down today in support of efforts to restrict or modify H.R.3261 "Stop Online Piracy Act" and S.968 "PROTECT IP".  As a practitioner of IP, I know first hand the dangers and hardship that IP theft and infringement bring.  Not only do major corporations spend a lot of valuable resources and time developing IP, solo, start-up and small business also have their economic viability tied to protection of their IP.  


That being said, Congresses' attempt to "help" will do more harm than good. What the IP regime needs is a review of what the theory is behind the protection of IP.  Is is a moral right, as the Europeans have sometimes argued, or is it a economic one, which can be traded and modified in the democracy of ideas for a compromise that enhances overall prosperity? Unfortunately, the Acts, as presented appear to be focused on the narrow concerns of the few, without even recognizing the concerns of the many. Both bills should be removed and rethought, crafted with the input of not only the multinational, or "free copyright" campers, but with the knowledge that many small business need the law to be both clear and fair.  What isn't needed in Congress fighting rear guard actions for failing business models. 


If you want to know more, I suggest you check our the EFF and their specific coverage of this issue. 

Friday, January 6, 2012

Pioneers

Graphic: The World’s Most Innovative Countries
Infographic by Visual News

Visual News a great site for lovers of infographics (who isn't a lover of good, if slightly misleading infographics) put together this nice image regarding patents and innovation across the world. While I am not entirely convinced in the soundness of their reasoning behind the lack of China presence.  It is definitely a good way to present what can be dry statistic on the the trends in 21st century innovation.
I think two important observations stand out. 1) Even in the age of "Social Media" everything, the biggest patent sector is still directed to electronics devices and computer hardware.  2) That European countries individually do not produce a huge number of patents, but combined into the EU, they become a significant player in the global space.


Monday, January 2, 2012

謹賀新年 - Happy New Year

明けましておめでとうございます!

I just wanted to take this opportunity to wish many of the Japanese colleagues, friends, and acquaintances I have met over the last 2 years a very happy new year. I hope to continue to have the great privilege or traveling and speaking with Japanese IP professionals.  Hopefully, 2012 will be as a unique and productive year as 2011 and 2010 have been.