. . . 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.
Living on Earth may be expensive, but it includes an annual free trip around the Sun.