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What's funniest about your argument is that the last 40 years of software development pretty much prove it wrong. It's been a thriving industry in which fortunes have been made while software patents have, luckily, been *mostly* been ignored.
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I do believe my first line reads something like:
I agree that the current patent system doesn't work for software
And I might add that I don't believe that there is some certain patent system that works for software. But all have not been tested/tried/thought of - there might be something that works, and works better than not having it at all. Maybe, maybe not. But saying that nothing will work is sorta like closing your eyes, holding your hands over your ears, and yell out loud "lalala". And I apologize for the childish comparison from my behalf.
Another idea than the current could be that only file formats can be patented. And maybe extend this to always allow reading of patented file formats. Two types of file formats would then exist: Patented ones, and not-patented ones. It would then always be possible and legal to read patented file formats, since the complete specifications would have to be public. And it would be, maybe not possible, but at least always legal to both read and write not-patented file formats.
They have some pretty interesting ad campaigns out at my university. In the dormitory food court, there are posters up that say the average out of court settlement of downloading 10 songs, and compare it to how much Ramen noodles you could buy. It is kind of funny actually.
How many songs could you buy for the average settlement of downloading songs?
"Would I turn on the gas if my pal Mugsy were in there?" "You might, rabbit, you might!" -- Looney Tunes, Bugs and Thugs (1954, Friz Freleng)