Response to @Greg and @Steve
GREG: "WHY an inferior and more expensive product should be protected is quite simple: if I have to spend 1.5 billion dollars in R&D, like is the average currently, to create a new drug, I NEED to have a protection against generics companies who will, oe month after I get the product out, have identified the molecule in their facilities for $5 millions, and will then start churning it out of their factory for the same basic cost."
I specifically said software patents, I don't hold an opinion on other patents one way or the other because it is not in my field of expertise. I don't regard your comments relevant whatsoever to the software field.
Just like you say, patents in general were intended to compensate the R&D process, however with software this is completely unnecessary, as R&D costs are minimal (compared to your example).
For about the costs of filing a patent of a "software invention", one could probably hire hackers to implement the algorithms of said invention from scratch within a week without the benefit of prior work. Assuming that this is true, what then is the public benefit/justification of software patents?
STEVE: "If the developers can make it better and faster than Company X then they are surely doing it differently, and so won't infringe the patent held by Company X?"
Should developers be wasting time and resources by the fact that they must compare their home grown algorithms to those vaguely described in the patent registry? It is a pointless legal endeavor with no technical merit. It should not matter if they happen to develop and use the SAME software algorithms, they should be entitled to.
You may not be a developer, but you are misunderstanding that there are mathematically only so many efficient ways to code things, patents restrict developers from using the best implementations. So even if there was no significant R&D for the work covered by the patent, there sure will be for the developers trying to avoid the patent.
STEVE: "Then they patent their improvements, license the basic technology from Company X, and get rich selling the improved version..."
Even if a developer chooses to apply for a patent on an improvement of an existing software patent and succeeds, Company X is not legally required to license the original software patent to the developer under Reasonable and Non-Discriminatory terms. So the improvement may be worthless. Additionally, unless the developer files a broad patent or several patents to protect the first, it may be possible to side step his patent.
Neither of you addressed my base point that patents create a huge source of completely unnecessary overhead, resulting in less development funds, and ultimately raising costs.
We see the patent lawsuits in the news all the time, who do you think is paying for it??
I reassert that those who understand software patents objectively would do away with them.