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I think this is a valid and important market sign
to consider by politicians working with new patent law and treaties.
If insurance for malpractice is so high it means that the economic impact
of this kind of work is low. It is what we call patent
inflation.
However the main factors mentioned here are not these on
software patents, but the common practice of application deadline insurance and
shortage of insurance capital.
Yes but we have to look at exactly why the premiums
are rocketing. According to one lawyer it is because clients are exaggerating
the value of their so-called "inventions". This is far easier to do now that the
requirement for a physical product being realised has been scrapped, and any
business method or piece of software can be said to be an "invention". If the
rules were tighter as they should be since patents are supposed to be
monopolies for genuine inventions requiring large investment for
research , then they wouldn't have the
problem of client filing overload.
This becomes all the more of a risk with software
patents, since they require no new physical product or process to
materialise - and I don't think that it is any coincidence that the rise of
trivial business process patents have been in concert with the
rocketing insurance costs.
Sincerely,
Christian
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