Bonum Certa Men Certa

China Creates a Patent Bubble That Contributes to Patent Inflation

Worth of patents is declining as quality goes down and quantity goes up

Hyperinflation Reference: Hyperinflation



Summary: China's obsession with patent quantity rather than quality (a disease that has infected the current boss of the EPO) is a cause for concern, except perhaps to patent lawyers who in the short term enjoy the temporary inflation (before hyper-inflation and implosion)

IN GERMANY at the end of the week we found this new article from Stefan Krempl (who often covers EPO scandals) -- an article which deals with the subject we wrote about 2 days ago. IAM wrote about it as well and it was rather refreshing because, for a change, IAM actually explained that patents are a terrible measure of "innovation" -- however one defines it. To quote IAM:



This blog has said it before.; but it is worth saying again: patent filing statistics are not a measure of innovation. They may be indicative of a country’s capacity for invention and innovation, they may tell us something about efforts to transition to a more ‘knowledge-based’ economy; but, then again, they may not. In fact, all they can really tell us with certainty is how many patent applications are being filed. Innovation is something of a qualitative, subjective concept. Patent filings, on the other hand, are a simple and objective matter of whole numbers. The latter is at best an inadequate metric for understanding the former.


Meanwhile, in another German site/blog called FOSS Patents, this time (for the first time as far as we're aware) not composed by Florian Müller, "more rationality and a shift to China" was covered. Actually, as we noted here the other day, China shoots itself in the foot with patents and it will pay for that in the long run. China has adopted patent maximalism to the point where almost every crappy application becomes a granted patent and lends to a global inflation (if not hyper inflation) that will devalue all patents. Wait and watch what happens in the coming years/decade. China is already fast becoming a hotbed of patent trolls.

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