Wednesday, January 19, 2011

Patents and Tax Farming

There remain simply too many Patents out there for anyone to keep track of, so now IBM requests a Patent for a program to keep track of the Patents. I have stated previously, and will reiterate, that there is a very simple Solution to the whole Problem. Patents are a Public award, and should never have been implemented as an Award system without definition of the magnitude of the awards; based upon a per-usage rate, combined with the cost of development of the technology. The Government that initiates the award has inherent right to determine How Much is to be gained from the award on a Piece-rate basis.

There implications of the system of Patents go way beyond a simple guarantee of Profits. Some will think this argument to be spacious, but it is very real when it comes to adding up the Money. Patents are a form of Tax Farming; an old Roman system where Senators bid on tax collection among specific provinces of the empire. The highest bidder in the Senate was awarded the right of tax collections for a province, then could impose any Tax rates he desired to raise the amount of funds to pay the Senate contract. Needless to say, Tax Farming made many Senators rich, and impoverished many provinces. Then the high bidders had the Roman Legions to impose their Tax rates and Collections; today, many utilize the power of the federal Courts to enforce Patents. Often the rates stipulated are equally as usurious.

I could easily attest that the American bill for Drugs and Medical Equipment would easily be cut by 35%, if judicious use of listed per-dosage or usage rates were imposed when the Patent was issued. Remember this is not to say that medical research would remain adequately funded; it only says rates issued to allow Americans to pay for their Drug Costs would lead to reliance on equally as efficient older Drugs or medical practices not continuously under Patent. I could easily also lay claim that Technical Software and Hardware would again be adjudged for its life expectancy, not by specifically-designed Software to cut older equipment from the Communications network. These are Changes which would remove Patents from the arena of Tax Farming, and would generate a new business mode for economic growth. lgl

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