1) Patents are monopolies to begin with. A monopoly can generally pass its costs on to the consumer. So the companies now being harassed by intellectual property leeches would just feel a bigger bits
2) The government getting revenue from patents would be an incentive for the government to expand patents.
3) It would legitimize the patents even further.
4) It would be a quick way for a company to claim a huge value. Even if it cost the company some taxes, showing a return that said "10 million dollars in intellectual property" would be a fabulous way to convince a naive investor you really had something worth 10 million dollars - that they could buy for a cheap only 1 million dollars.
...
I could probably go on. File under "the seductive lure of perverse incentives..."
From the time-of-day you have replied, I have to assume you are in Europe or the UK, whereas this discussion is about the US (if you are in the US, I would have to assume you were misinformed or trolling), so ...
1) Monopolies can pass costs only as so far as they have become essential monopolies - like the power company, Microsoft, US health care or phone companies. But 99.9999% of patents are monopolies on _inessential_ things, which the customer can just avoid if not competitively priced, so they CANNOT pass it on. New cheese making patent may give monopoly on a new cheese kind, but if not competitively priced would keep customers with their old Camembert.
2) that has already happened, that's why in the US, the patent office is already a rubber-stamp, patent examiners have 8 hours to review a patent, and are encouraged to accept the patent rather than reject it.
3) Patents are at the top of the legitimacy scale already in the US. Unfortunately. Which is what Cuban (the original article) is talking about.
4) Well, patents don't do that any differently than anything else. A company could just as well buy a house for $100K, claim it is worth $100M, pay property taxes to the local council, and claim "huge value". If someone is going to be this fraudulent, it doesn't matter if they do it with "house", "patent", "copyright", "trade secret", or any other "property".
You could probably go on, but nothing you mentioned is relevant to the discussion of patents in the US (which is what the original article and my proposal is about), and very little (3, maybe) has any bearing on that discussion in Europe.
You begin making a big about you (false) assumption concerning my location. That might be clue you could take a look at the world outside the one construct in your head. In any case, considering that your solution won't happening in any industrialized country, I most looked at this abstract proposal as a chance demonstrate how the intentions of would-be tax-creators often go awry. As to your arguments, the fact that we are having this debate shows that legitimizing patents is still a challenge in the US and it is Econ 101 that monopolies pass-on price increases.
Your initial false assumption might be a clue to your excessive in your own mental constructions.
1 - The point is that software are specifically on things that on can't easily work because they are so. And they sue the companies after their software is implemented.
2-3 - The fact that we're having this debate shows that the question is still in play
4 -
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Considering your solution will happen in any case, my point were mostly concerning
Ok, so you say you're not in Europe, and you say you're not a troll. So I would have to assume that you are misinformed (the other alternative based on the coherence of _this_ post, is that you are drunk).
> the fact that we are having this debate shows that legitimizing patents is still a challenge in the US
No. Hackernews and reddit are two places that don't consider patents legitimate. Outside of those two, there are fewer things in the US at large that are considered MORE legitimate than patents. (If we had a discussion here discussing how evil Zebras are, would that indicate Zebra innocence is still a challenge in the US?)
> it is Econ 101 that monopolies pass-on price increases.
No. Apparently, you've failed Econ 101. There's a huge difference between essential monopolies and inessential monopolies - if I open a banana stand, I have a monopoly over selling bananas in that stand. Does that mean I can pass on any price increases? Yes, if everyone needs a banana AND there is no alternative supplier close enough (making me an essential monopoly). Otherwise, no. Patents are mostly for very limited and inessential monopolies, and they therefore CANNOT do that.
> The point is that software are specifically on things that on can't easily work because they are so. And they sue the companies after their software is implemented.
I have no idea what you were trying to say here.
The important thing to note is that the baseline is not a patent-free world. The baseline is a world in which patents are legitimate, cheap, and let the patent owner set the value (including infinite value, stopping others from using that patent) without any increase to that cheap fixed value of the patent (beyond the costs of litigation)
1) Patents are monopolies to begin with. A monopoly can generally pass its costs on to the consumer. So the companies now being harassed by intellectual property leeches would just feel a bigger bits
2) The government getting revenue from patents would be an incentive for the government to expand patents.
3) It would legitimize the patents even further.
4) It would be a quick way for a company to claim a huge value. Even if it cost the company some taxes, showing a return that said "10 million dollars in intellectual property" would be a fabulous way to convince a naive investor you really had something worth 10 million dollars - that they could buy for a cheap only 1 million dollars.
...
I could probably go on. File under "the seductive lure of perverse incentives..."