. . . if the head of the office is trying to use smartphones as an example of patents inspiring "innovation", he is... an idiot, quite frankly (or a liar, either way, not trustworthy).
On the other hand, the Patent system works well when viewed in its historical context. They have been a net benefit for innovation. . For example, there are many fewer patents lawsuits regarding Smart Phones than there were in the time the original telephone was invented. Here is a god article: http://www.forbes.com/sites/forbesleadershipforum/2012/02/09/no-the-patent-system-is-not-broken/2/
What we need is general legal reform so that disputes can be decided simply and inexpensively without Lawyers getting all the goodies.
Work continues in this area. -- DEC's SPR-Answering-Automaton