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class="mw-indicators mw-body-content"> </div> <h1 id="firstHeading" class="firstHeading">Costly legal costs</h1><div id="mw-page-header-links"><div role="navigation" class="mw-portlet" id="p-namespaces" aria-labelledby="p-namespaces-label"><h3 id="p-namespaces-label" lang="en" dir="ltr">Namespaces</h3><div class="mw-portlet-body"><ul><li id="ca-nstab-main" class="selected"><a href="/wiki/Costly_legal_costs" title="View the content page [c]" accesskey="c"><span>Page</span></a></li><li id="ca-talk"><a href="/wiki/Talk:Costly_legal_costs" rel="discussion" title="Discussion about the content page [t]" accesskey="t"><span>Discussion</span></a></li></ul></div></div><div role="navigation" class="mw-portlet" id="p-views" aria-labelledby="p-views-label"><h3 id="p-views-label" lang="en" dir="ltr">Page actions</h3><div class="mw-portlet-body"><ul><li id="ca-view" class="selected"><a href="/wiki/Costly_legal_costs" redundant="1"><span>View</span></a></li><li id="ca-viewsource"><a href="/w/index.php?title=Costly_legal_costs&action=edit" title="This page is protected.
You can view its source [e]" accesskey="e"><span>View source</span></a></li><li id="ca-history"><a href="/w/index.php?title=Costly_legal_costs&action=history" title="Past revisions of this page [h]" accesskey="h"><span>History</span></a></li><li id="ca-more" class="dropdown-toggle"><span>More</span></li></ul></div></div></div><div class="visualClear"></div><div class="mw-body-content" id="bodyContent"><div id="contentSub"><span class="mw-redirectedfrom">(Redirected from <a href="/w/index.php?title=Costs_are_completely_unreasonable_for_SMEs_and_individuals&redirect=no" class="mw-redirect" title="Costs are completely unreasonable for SMEs and individuals">Costs are completely unreasonable for SMEs and individuals</a>)</span></div><div id="mw-content-text" lang="en" dir="ltr" class="mw-content-ltr"><div class="mw-parser-output"><p>Software development, like writing a book or making music, is something that's often done by individuals and hobbyists. Indeed, a lot of <a href="/wiki/Free_software" title="Free software">free software</a> was written by non-paid individuals. Their freedom to write software is important, and the software they write is important for society. The patent system is too expensive for them, and always will be. </p><p>The costs of participating in the patent system are wildly expensive compared to the cost of entering and participating in software development and distribution. </p><p>If a patent holder demands €5,000, and a law firm offers to analyse your risk for €10,000 - where's the smart money? In software, many developers don't have a team of patent experts, and most don't have large reserves of cash for defence against patent threats. </p> <div id="toc" class="toc"><div class="toctitle" lang="en" dir="ltr"><h2>Contents</h2></div> <ul> <li class="toclevel-1 tocsection-1"><a href="#Why_is_software_different"><span class="tocnumber">1</span> <span class="toctext">Why is software different</span></a></li> <li class="toclevel-1 tocsection-2"><a href="#Cost_of_deciding_whether_to_defend_yourself"><span class="tocnumber">2</span> <span class="toctext">Cost of deciding whether to defend yourself</span></a></li> <li class="toclevel-1 tocsection-3"><a href="#Cost_of_defending_yourself_in_court"><span class="tocnumber">3</span> <span class="toctext">Cost of defending yourself in court</span></a></li> <li class="toclevel-1 tocsection-4"><a href="#Related_pages_on_ESP_Wiki"><span class="tocnumber">4</span> <span class="toctext">Related pages on ESP Wiki</span></a></li> <li class="toclevel-1 tocsection-5"><a href="#External_links"><span class="tocnumber">5</span> <span class="toctext">External links</span></a></li> <li class="toclevel-1 tocsection-6"><a href="#References"><span class="tocnumber">6</span> <span class="toctext">References</span></a></li> </ul> </div> <h2><span class="mw-headline" id="Why_is_software_different">Why is software different</span></h2> <p>In fields such as manufacturing and pharmaceuticals, one can assume that practitioners have a certain amount of money since they will have had to buy and equip a factory and they will have to pass various safety tests. Also, since they pay dearly to be in business, it's safe to assume that people in these fields aim to make a profit from their work. </p><p>For software, most people have all the necessary equipment in their homes, and many people develop software without receiving any direct income from doing so. This means the law can't assume that software developers have the money to defend themselves or to get their own patents. </p> <h2><span class="mw-headline" id="Cost_of_deciding_whether_to_defend_yourself">Cost of deciding whether to defend yourself</span></h2> <p>In the <a href="/wiki/USA" class="mw-redirect" title="USA">USA</a>, according to <a href="/wiki/Dan_Ravicher" class="mw-redirect" title="Dan Ravicher">Dan Ravicher</a>, the cost of getting a legal opinion after receiving a patent threat letter is US$40,000 and the cost of defending one's self against a patent suit is US$2-4 million.<sup id="cite_ref-1" class="reference"><a href="#cite_note-1">[1]</a></sup> </p> <h2><span class="mw-headline" id="Cost_of_defending_yourself_in_court">Cost of defending yourself in court</span></h2> <p>According to economist John Jarosz of the Analysis Group, for patents in general (not specifically software patents): </p> <blockquote> <p>the average cost of litigation in 2009 for patent cases with less than $1 million at risk was $967,000. For cases with up to $25 million on the line, the average cost was $3.1 million. And for suits with more than $25 million at stake, the average cost to litigate was $6.2 million.<sup id="cite_ref-2" class="reference"><a href="#cite_note-2">[2]</a></sup> </p> </blockquote> <p>CEO of <a href="/wiki/Open_Invention_Network" title="Open Invention Network">Open Invention Network</a> Keith Bergelt estimates the costs at "<i>win, lose, or draw, it costs $3- to $5-million dollars to defend against a patent lawsuit.</i>"<sup id="cite_ref-3" class="reference"><a href="#cite_note-3">[3]</a></sup> </p> <h2><span class="mw-headline" id="Related_pages_on_ESP_Wiki">Related pages on ESP Wiki</span></h2> <ul><li><a href="/wiki/Costs_of_the_patent_system_to_governments" class="mw-redirect" title="Costs of the patent system to governments">Costs of the patent system to governments</a></li> <li><a href="/wiki/Cost_of_getting_patents" class="mw-redirect" title="Cost of getting patents">Cost of getting patents</a></li> <li><a href="/wiki/Calculating_infringement_damages_in_the_USA" class="mw-redirect" title="Calculating infringement damages in the USA">Calculating infringement damages in the USA</a></li> <li><a href="/wiki/2008_State_of_Software_Patents" title="2008 State of Software Patents">2008 State of Software Patents</a> (which explains how <a href="/wiki/All_businesses_are_targets" class="mw-redirect" title="All businesses are targets">all businesses are targets</a>)</li> <li><a href="/wiki/Invalid_patents_remain_unchallenged" title="Invalid patents remain unchallenged">Invalid patents remain unchallenged</a></li> <li><a href="/wiki/Software_patents_harm_SMEs" title="Software patents harm SMEs">Software patents harm SMEs</a></li> <li><a href="/wiki/Costs" title="Costs">Costs</a></li> <li><a href="/wiki/Low_risk" title="Low risk">Low risk</a></li></ul> <h2><span class="mw-headline" id="External_links">External links</span></h2> <ul><li>Patently-o: <a rel="nofollow" class="external text" href="http://www.patentlyo.com/patent/2009/08/patent-office-keeps-check-lets-patent-go-abandoned-for-being-10-short.html">Patent Office Keeps Check, Lets Patent Go Abandoned For Being $10 Short</a> a patent holder says "<i>not an attorney but a pauper disabled living on a fixed income (SSI) who cannot pay $200 to petition your office.</i>" so he will lose his patent</li> <li><a rel="nofollow" class="external text" href="http://www.examiner.ie/breakingnews/business/brussels-brokers-eu-wide-patenting-breakthrough-437002.html">EU hopes to lower the cost of a case to €200,000</a> - so even the best case scenario is ludicrously expensive</li> <li><a rel="nofollow" class="external text" href="http://www.theregister.co.uk/2004/11/04/mckool_smith_lawsuit_update/">3D patent suit extended to Dell, HP, IBM, Sony, others</a> - "<i>Manufacturers would need to pay a patent lawyer a lot of money to decipher whether they're even in violation of the more complex ones or not.</i>"</li></ul> <h2><span class="mw-headline" id="References">References</span></h2> <div class="mw-references-wrap"><ol class="references"> <li id="cite_note-1"><span class="mw-cite-backlink"><a href="#cite_ref-1">↑</a></span> <span class="reference-text"><a rel="nofollow" class="external free" href="http://www.pubpat.org/ftisaswptpresentation.htm">http://www.pubpat.org/ftisaswptpresentation.htm</a> - slide 12</span> </li> <li id="cite_note-2"><span class="mw-cite-backlink"><a href="#cite_ref-2">↑</a></span> <span class="reference-text"><a rel="nofollow" class="external free" href="http://legaltimes.typepad.com/blt/2010/06/ip-experts-question-p">http://legaltimes.typepad.com/blt/2010/06/ip-experts-question-p</a></span> </li> <li id="cite_note-3"><span class="mw-cite-backlink"><a href="#cite_ref-3">↑</a></span> <span class="reference-text"><a rel="nofollow" class="external free" href="http://content.dell.com/us/en/enterprise/d/large-business/cio-patent-lawsuits.aspx">http://content.dell.com/us/en/enterprise/d/large-business/cio-patent-lawsuits.aspx</a></span> </li> </ol></div> <p><br /> </p> <table class="wikitable"> <tbody><tr> <th colspan="3" style="border: 1px solid #c3c3c3;"><a href="/wiki/Category:Arguments" title="Category:Arguments">Why abolish software patents</a> </th></tr> <tr> <th style="color: white; background-color: #607b7d; border: 1px solid #c3c3c3;">Why abolish <i>software</i> patents </th> <td colspan="2"><a href="/wiki/Why_focus_only_on_software" title="Why focus only on software">Why focus only on software</a> · <a href="/wiki/Why_software_is_different" title="Why software is different">Why software is different</a> · <a href="/wiki/Software_patent_quality_worse_than_all_other_fields" title="Software patent quality worse than all other fields">Software patent quality worse than all other fields</a> · <a href="/wiki/Harm_caused_by_all_types_of_patents" title="Harm caused by all types of patents">Harm caused by all types of patents</a> </td></tr> <tr> <th style="color: white; background-color: #607b7d; border: 1px solid #c3c3c3;">Legal arguments </th> <td colspan="2"><a href="/wiki/Software_is_math" title="Software is math">Software is math</a> · <a href="/wiki/Software_is_too_abstract" class="mw-redirect" title="Software is too abstract">Software is too abstract</a> · <a href="/wiki/Software_does_not_make_a_computer_a_new_machine" title="Software does not make a computer a new machine">Software does not make a computer a new machine</a> · <a href="/wiki/Freedom_of_expression" title="Freedom of expression">Harming freedom of expression</a> · <a href="/wiki/Blocking_useful_freedoms" title="Blocking useful freedoms">Blocking useful freedoms</a> </td></tr> <tr> <th style="color: white; background-color: #607b7d; border: 1px solid #c3c3c3;">High costs </th> <td colspan="2"><a class="mw-selflink selflink">Costly legal costs</a> · <a href="/wiki/Cost_of_the_patent_system_to_governments" title="Cost of the patent system to governments">Cost of the patent system to governments</a> · <a href="/wiki/Cost_barrier_to_market_entry" title="Cost barrier to market entry">Cost barrier to market entry</a> · <a href="/wiki/Cost_of_defending_yourself_against_patent_litigation" title="Cost of defending yourself against patent litigation">Cost of defending yourself against patent litigation</a> </td></tr> <tr> <th rowspan="3" style="color: white; background-color: #607b7d; border: 1px solid #c3c3c3;">Impact on society </th> <th style="border: 1px solid #c3c3c3;">Restricting freedom </th> <td><a href="/wiki/Harm_without_litigation_or_direct_threats" title="Harm without litigation or direct threats">Harm without litigation or direct threats</a> · <a href="/wiki/Free_software_projects_harmed_by_software_patents" title="Free software projects harmed by software patents">Free software projects harmed by software patents</a> · <a href="/wiki/More_than_patent_trolls" title="More than patent trolls">More than patent trolls</a> · <a href="/wiki/More_than_innovation" title="More than innovation">More than innovation</a> · <a href="/wiki/Slow_process_creates_uncertainty" title="Slow process creates uncertainty">Slow process creates uncertainty</a> </td></tr> <tr> <th style="border: 1px solid #c3c3c3;">Preventing progress </th> <td><a href="/wiki/Software_relies_on_incremental_development" title="Software relies on incremental development">Software relies on incremental development</a> · <a href="/wiki/Software_progress_happens_without_patents" title="Software progress happens without patents">Software progress happens without patents</a> · <a href="/wiki/Reducing_innovation_and_research" class="mw-redirect" title="Reducing innovation and research">Reducing innovation and research</a> · <a href="/wiki/Low_risk" title="Low risk">Software development is low risk</a> · <a href="/wiki/Jobs_and_skills" title="Jobs and skills">Reducing job security</a> · <a href="/wiki/Harms_to_education" title="Harms to education">Harming education</a> · <a href="/wiki/Harm_to_standards_and_compatibility" title="Harm to standards and compatibility">Harming standards and compatibility</a> </td></tr> <tr> <th style="border: 1px solid #c3c3c3;">Disrupting the economy </th> <td><a href="/wiki/Examples_of_use_for_sabotage" title="Examples of use for sabotage">Used for sabotage</a> · <a href="/wiki/Controlling_entire_markets" title="Controlling entire markets">Controlling entire markets</a> · <a href="/wiki/Breaks_common_software_distribution_models" title="Breaks common software distribution models">Breaking common software distribution models</a> · <a href="/wiki/Blocks_competing_software,_reducing_choice" class="mw-redirect" title="Blocks competing software, reducing choice">Blocking competing software</a> · <a href="/wiki/Software_patents_harm_SMEs" title="Software patents harm SMEs">Harming smaller businesses</a> · <a href="/wiki/All_businesses_have_software_patent_risk" title="All businesses have software patent risk">Harming all types of businesses</a> · <a href="/wiki/A_bubble_waiting_to_burst" title="A bubble waiting to burst">A bubble waiting to burst</a> </td></tr> <tr> <th rowspan="3" style="color: white; background-color: #607b7d; border: 1px solid #c3c3c3;">Problems of the legal system </th> <th style="border: 1px solid #c3c3c3;">Problems in law </th> <td><a href="/wiki/Clogging_up_the_legal_system" title="Clogging up the legal system">Clogging up the legal system</a> · <a href="/wiki/The_disclosure_is_useless" class="mw-redirect" title="The disclosure is useless">Disclosure is useless</a> · <a href="/wiki/Software_patents_are_unreadable" class="mw-redirect" title="Software patents are unreadable">Software patents are unreadable</a> · <a href="/wiki/Publishing_information_is_made_dangerous" title="Publishing information is made dangerous">Publishing information is made dangerous</a> · <a href="/wiki/20_years_is_too_long" title="20 years is too long">Twenty year protection is too long</a> </td></tr> <tr> <th style="border: 1px solid #c3c3c3;">Problems in litigation </th> <td><a href="/wiki/Patent_trolls" class="mw-redirect" title="Patent trolls">Patent trolls</a> · <a href="/wiki/Patent_ambush" title="Patent ambush">Patent ambush</a> · <a href="/wiki/Invalid_patents_remain_unchallenged" title="Invalid patents remain unchallenged">Invalid patents remain unchallenged</a> · <a href="/wiki/Infringement_is_unavoidable" class="mw-redirect" title="Infringement is unavoidable">Infringement is unavoidable</a> · <a href="/wiki/Inequality_between_small_and_large_patent_holders" title="Inequality between small and large patent holders">Inequality between small and large patent holders</a> </td></tr></tbody></table>   </div>  </div><div class="printfooter"> Retrieved from "<a dir="ltr" href="https://wiki.endsoftwarepatents.org/w/index.php?title=Costly_legal_costs&oldid=38571">https://wiki.endsoftwarepatents.org/w/index.php?title=Costly_legal_costs&oldid=38571</a>"</div> <div class="visualClear"></div></div></div></div><div id="content-bottom-stuff"><div id="catlinks" class="catlinks" data-mw="interface"><div id="mw-normal-catlinks" class="mw-normal-catlinks"><a href="/wiki/Special:Categories" title="Special:Categories">Categories</a>: <ul><li><a href="/wiki/Category:Arguments" title="Category:Arguments">Arguments</a></li><li><a href="/wiki/Category:Costs" title="Category:Costs">Costs</a></li></ul></div></div></div><div class="visualClear"></div></div></div><div id="mw-footer-container" class="ts-container"><div id="mw-footer" class="ts-inner"><div id="footer-bottom" role="contentinfo" lang="en" dir="ltr"><div id="f-etcico" class="footer-icons"><a href="https://www.fsf.org/"><img src="https://static.fsf.org/nosvn/logos/FSF_logo_white.svg" alt="Logo for the Free Software Foundation" height="40" width="88"/></a></div><div id="f-copyrightico" class="footer-icons"><a href="https://www.gnu.org/copyleft/fdl.html"><img src="/w/resources/assets/licenses/gnu-fdl.png" alt="GNU Free Documentation License 1.3" width="88" height="31"/></a></div><div id="f-poweredbyico" class="footer-icons"><a href="//www.mediawiki.org/"><img src="/w/resources/assets/poweredby_mediawiki_88x31.png" alt="Powered by MediaWiki" srcset="/w/resources/assets/poweredby_mediawiki_132x47.png 1.5x, /w/resources/assets/poweredby_mediawiki_176x62.png 2x" width="88" height="31"/></a></div><ul id="f-list" class="footer-places"><li id="lastmod"> This page was last edited on 28 December 2023, at 06:31.</li><li id="copyright">Content is available under <a class="external" rel="nofollow" href="https://www.gnu.org/copyleft/fdl.html">GNU Free Documentation License 1.3</a> unless otherwise noted.</li><li id="about"><a href="/wiki/ESP_Wiki:About" title="ESP Wiki:About">About ESP Wiki</a></li><li id="disclaimer"><a href="/wiki/ESP_Wiki:General_disclaimer" title="ESP Wiki:General disclaimer">Disclaimer</a></li><li id="priv"><a href="https://www.fsf.org/about/free-software-foundation-privacy-policy">Privacy Policy</a></li><li id="LibreJS"><a href="https://weblabels.fsf.org/en.swpat.org/CURRENT/" rel="jslicense">JavaScript licenses</a></li></ul><div class="visualClear"></div></div></div></div></div><script>(window.RLQ=window.RLQ||[]).push(function(){mw.config.set({"wgPageParseReport":{"limitreport":{"cputime":"0.051","walltime":"1.063","ppvisitednodes":{"value":74,"limit":1000000},"ppgeneratednodes":{"value":172,"limit":1000000},"postexpandincludesize":{"value":3040,"limit":2097152},"templateargumentsize":{"value":0,"limit":2097152},"expansiondepth":{"value":3,"limit":40},"expensivefunctioncount":{"value":0,"limit":100},"unstrip-depth":{"value":0,"limit":20},"unstrip-size":{"value":1263,"limit":5000000},"timingprofile":["100.00% 12.951 1 -total"," 64.57% 8.363 1 Template:Reflist"," 33.79% 4.376 1 Template:NavWhyAbolish"]},"cachereport":{"timestamp":"20250220182252","ttl":86400,"transientcontent":false}}});});</script> <script type="text/javascript"> // @license magnet:?xt=urn:btih:1f739d935676111cfff4b4693e3816e664797050&dn=gpl-3.0.txt GPL-v3-or-Later var _paq = _paq || []; 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