Well look I'm not saying delete the patent system completely. Yes you are right if you want the private sector to do something there has to be an incentive. I understand why we have patents. Good point about trade secrets posibly being worse than patents.
What I am saying is there are problems with the patents system. First off, consider a chain of developements where each technology is required to develope the next.
A=>B, B=>C, C=>D
A company that wants to prevent D from being used. They could patent A, then right before 20 years is up develope and patent B, then in 20 years C, then in 20 years D. Then end result is that they dominate a branch of research for 80 years.
Ok, I'm not sure companies are truely that horrible. This is the more realistic problem:
Say there are four technologies {A,B,C,D} required to build the super car.
Honda has A.
Toyota has B.
Ford has C.
Daimler is thinking about geting D.
As it stands nobody can build the super car without licensing from Honda, Toyota and Ford. Now they could put their heads together to agree to develope D and then license the technology to each other. They'll only do this if all parties are going to profit from it. These kinds of deals are hard to set up, since any company can veto the whole. What's worse: it may be in the best intrests of all those companies to just do buisness as usual and not build super cars.
It's the complete oposite of free market competition. The cartel is there by default, instead of being hard to maintain as it would in say oil production, the companies have to
agree to compete.
You keep talking about codes and copyrights, but these things aren't patents, they are very, fundamentally different. Copyrights exist basically forever, depending on whether a company owns it or an individual (or estate) owns it.Sorry I'm a software engineer. Code can be copywrited, but algorithms (techniques) can be patented.
http://burnallgifs.org/Here's a classic example. The GIF guys have been real pain about thier patent.
I thought Copyrights themselves go into the public domain. I think the founding fathers suggested 2 terms of 7 years. Disney seems to want to push it back forever, so Micky will stay thiers. I think only trademarks are forever.
Sorry about being so long winded. Bottom line:
Private sector research is a nessesary evil. Don't listen to the libertarian free market hippies; we need public sector research. We may need to rethink patents among other things.