rekrunner wrote:
I don't speak of costs to develop, but more about the direct costs to the end user. Patents give a company a temporary monopoly, were there is a temporary lack of competition to drive prices down. For certain "revolutionary" drugs, like cancer cures, the price will be artificially high, because there is no alternative. The demand will be driven by the "will to live", and poor people will be excluded from treatment since they can not afford it. Affording commodities like a computer or a car (tough luck if you can't), is not quite the same as affording drugs you need when you are terminally ill.
With regards to utility companies, I think privatizing them is a mistake and a failure. No utility company could ever fail as big as Enron did. Every company, given the chance, has the same motivation as Enron to generate shareholder value.
Things that require a big upfront investment, of general interest to the public (e.g. mass transportation, railroads, highways, utilities, internet), are best handled by government funded agents, with a focused mandate on the end result. Look at the internet. If it weren't developed by DARPA, we would have something analogous to the mobile phone chaos in the U.S., where single providers can not give complete coverage.
You spoke of setting up a company, and selling a product; not generating advertising revenue. More companies fail to make money selling software, as a product, by the copy, than those that make money. Software is not a traditional commodity, because there are too many exceptions. We've already mentioned developed for in-house use only, bundled for free with h/w for sale, bundled for free with OS (anti-competitive behavior to eliminate your competition), and now you mention given away to the user, generating ad revenues. Not to mention "free" software, where revenue can be generated by customization and support, or revenue is not generated at all. I said the "traditional model" is rarely followed, because there are so many alternate business models. You don't see this diversity in the auto industry.
Sure some markets exist. Games are probably the best example of software that can be sold to the general public for profit. Maybe some industries (i.e. medical industry, beer industry) have a large enough audience, and well defined problem, to create a market.
There are no valid software patents, because it doesn't fit the definition of invention required for patents. Software is essentially mathematical algorithms and algorithms are not supposed to be patentable. So lawyers usually "invent" some s/w, h/w, process combined description, and call that an invention. There was a recent ruling (Bilski) where the software patent standard got much higher.
asdfasdfas wrote:Any evidence it will be cheaper or more effective? And would be any more efficient or cheaper than the government running the auto industry, the utility companies, broadcast companies, and so on? If your a socialist the answer is clearly yes. If your a capitalist, the answer is no. The rest of us look at them at a case by case basis.
As far as selling software being a rare exception, depends on your definition of rare. There a tens of thousands of companies selling software today. The browser market isn't free for 95% of the people out there. Mozilla makes a crap load of money selling search traffic. Email isn't free. Outlook costs a boatload of cash and gmail sells ads. 99% of games are paid (either by ads or straight cash). If you buy a system for your medical practice, you pay a shitload of cash and then have to buy a maintenance contract
I have no idea of the percentage of software patents found to be invalid but given the amount of money RIM and Microsoft had to pay for very flimsy patents, I don't think the standard is as high as you think.