“Patent Failure”

The patenting of software, in contrast to the patenting of chemical and pharmaceutical compounds, generates relatively high litigation costs and low benefits (Pete Warden, Jun. 3, via our comments section; Tim Lee, guesting at Megan McArdle’s, has a three-part review of “an important new book by James Bessen and Michael J. Meurer” on the subject (first, second, third)).

2 Comments

  • […] Walter Olson: The patenting of software, in contrast to the patenting of chemical and pharmaceutical compounds, […]

  • I’m curious about a related question and thought I’d post here in case some expert happens by.

    Bestbuy doesn’t accept returns on software (they will exchange for same product only). Most software requires the user to accept the terms and conditions of the EULA, or return the product to the place of purchase. Since BestBuy refuses refunds, what if any legal standing does a customer have to accept the EULA in bad faith and violate it.

    One biased point of view would be that the cash-register purchase is the only enforceable contract, and that the software company should have not be able to rely on the EULA, since it was not provided with at the time of sale.