PREFACE WRITTEN ON JULY 4TH 2011-To a paper I wrote in 1996 as a critique of legislation being pursued in Congress- They are still at it 15 yrs later

AS THE FRENCH SAY - THE MORE THINGS CHANGE THE MORE THEY ARE THE SAME.
BUT SOME OF THE BAD STUFF WAS REMOVED AND NOW WORSE IS ADDED.
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IN1996 SENATE BILL S.23 AND THE HOUSE BILLARE CLEAR AND PRESENT DANGERS TO THE INVENTIVE AND TECHNOLOGICAL SUPERIORITY OF THE UNITED STATES AND TO ITS FINANCIAL FUTURE!
By George Margolin
Vice President – Professional Inventors Alliance
The people behind the clearly foreign inspired,, S.23, are trying to do their dirty work quickly so we wanted you to have the following information before it reaches the floor.
PIRATE- ization of the American Patent System with S.23
This legislation kicks off with an scheme to hijack of the US Patent System and make it into an easy-to-subvert Fiefdom, ruled over by an appointed Czar who can succeed himself endlessly, like J. Edgar Hoover. This Czar would also have permission -- written permission, would you believe, so that he “may accept monetary gifts or donations of services or of real, personal, or mixed property ...” and “may retain and use all of its revenues and receipts, including revenues from the sale, lease or disposal of any real, personal or mixed property or any interest therein, of the Office, including for research and development and capital investments ..” They also tried, in their first onslaught, to receive Unlimited (no cap) borrowing from the Treasury! But they got caught before they got their hands in the cookie jar and had to change that language to one where they might have to get some sort of Congressional approval to divert the taxpayer’s money.(THIS SECTION GOT KILLED FOR BEING TOO DISGUSTING.)
Considering the fact that the Patent Office now GIVES close to a hundred million dollars a YEAR, to the Treasury -- this sounds like the ultimate in gall. It’s like saying, “Give me your half Billion dollar a year company, that now pays you back serious money -- and let me also keep all that money and borrow as many Billions of dollars more as I can get away with. Incidentally, I may or may not pay the money back.. “And, by the way -- keep Congress in a tiny advisory role and give them virtually no oversight. Oversight makes me nervous.” I’ll bet it does!


Doesn’t this sound as if someone is preparing to sell our Patent Office to the highest bidder?
Do you really think that bidder will be American?

S.23 Will Eliminate Foreign Industrial Spies --
By Legalizing Industrial Espionage!

Other parts of this Moorhead/Schroeder Patent Reform Act of 1996 cover the “early” (their word, not ours) publishing of all our technological and patent secrets -- particularly those not yet granted, and especially the breakthrough patents that take many years to issue. This will permit the Japanese and others to copy, surround with nuisance patents, or oppose -- the creations of American inventors, often long before their patents can issue. This could even keep their patents from ever being allowed to issue! I call this part, “The Bill to Legalize Foreign Industrial Espionage.” Who needs paid spies if we publish all of our secrets on the Internet before they can be protected by patents?

“Around the World in 18 Milliseconds”
If they get this legislation though -- soon they’ll push for legislation to eliminate the inconvenience of waiting 18 months to publish all our secrets. New technology (American Technology, I might add) has made it even easier for our competitors and potential enemies to learn our secrets. They’ll say, “Why don’t we just publish all our patent applications on the Internet, the moment they arrive at the Patent Office?” After all, if 18 months is better than waiting, a few years, to publish our patents -- why wait 18 months? It would take only about 18 Milliseconds to broadcast each of our patent applications directly into the hands of all our competitors and enemies anywhere in the world!

Personally, I don’t think this is such a hot idea! But the authors of this bill seem to think it is the best way to handle America’s inventive output. They even wrote, (and I added the underlining to pertinent points) “Publication of patent claims at 18 months will inform competitors of the scope of patent rights that may be granted in the US market. This information will deter competitors from manufacturing the invention without a license, . . . ” Really?! And “Publication of patent claims also will help competitors avoid the expense of filing patent applications of their own that are too late.”

What!? -- The authors are telling us to expose our most valuable national secrets “early”, in order to keep our competitors from needlessly spending their money? Do the authors really think that will “deter” our competitors?
Early Publishing -- The reality is that it would eliminate the need for foreign industrial spies, by exposing all of the currently secret American Patent Applications to their world wide competitors, before they are issued and protected. This would be the same as publishing the combination to your company safe and sending along with it, a list of all your company’s customers and your private plans for the future. YOUR PATENT APPLICATIONS ARE YOUR PLANS FOR THE FUTURE!

Why are we being conned into doing this? Because THIS is just the way the Japanese patent system is set up -- to permit large corporations and Zaibatsus, to control and to stop the dangerous patents of their competitors, from issuing. It is also how they can get to market before you know what hits you. And how they can surround your patents with a frivolous patent fence so tight you’ll feel like you’re in a strait jacket. The sad part is that you really will be in a strait jacket, and in dire straits, indeed. And no one will let you out until you do the famous Japanese “Cross Licensing” deal. That’s where you give up your rights in order to get their rights

Of course, if you are a small American company or an independent inventor, it will do you no good, because you have no way to compete with a big Japanese manufacturer. But they’ll tell you it’s absolutely equal. You give them FREE rights to your breakthrough patents and they give you rights to their nuisance patents they have filed to entrap you. This kind of “equal” reminds me of an old hobo recipe for “Rabbit and Burro Stew.” Take equal parts of Rabbit and Burro -- one Rabbit and one Burro. So if the above sounds like a big sucker play being foisted on us -- Bingo!

Eliminating Military Spies The Same Way
Using these same instantaneous publishing methods -- we can eliminate the need for Military Spies just as we can Industrial Spies -- by putting all our secrets directly on the Internet and “Sharing” our Attack scenarios and Defense strategies with the world. Wouldn’t that make the world a “nicer” place?

Why would a prudent Legislator accept this “rush to bad judgment?”
So what WAS this great rush to ram S.23 through Congress? What prudent person would rush to tamper with and dismember, what everyone, including the authors of this terrible legislation , admit is the best patent system in the world -- “the envy of the rest of the world” they wrote?” What Legislator would be willing to bear the shame of being responsible for the senseless slaughter of the Inventive Goose that has been laying America’s golden eggs for 206 years? The same golden eggs that created our industries and jobs. The authors want to install the Japanese Patent System -- which is known to be unfair and unreliable to the point of criminality -- and give up our working system.

Wouldn’t any practical person, contemplating making ANY changes to a successful, time-tested 220 year old patent system -- -- make a small change here or there to learn what effects or disasters these changes might cause? Wouldn’t any prudent legislator figure that if it “ain’t broke” and always produces more and better results than any other in the world -- maybe we should protect it and tweak it rather than tear it limb from limb, and throw its pieces to the rapacious sharks of international commerce -- our competitors?

If you would like “Doublespeak” defined, read the following quotes. This is POLITICS!
One of the authors, wrote a MEMORANDUM addressed to the Chairman and Members of the Judiciary Committee. Here is what they were told. It started out saying that they are proposing these massive changes to “ensure that United States Patent System continues to be the envy of the rest of the world. We are by far the world’s largest producer of intellectual property and this has greatly benefited our balance of trade” (Note, I have heard that our balance of trade is in the toilet. despite our marvelous patent system, just imagine the numbers without it.) “This success is dependent upon a rational and sound policy of protecting intellectual property by encouraging the development of new inventions and processes” Then they were told, “America no longer stands alone in its commitment to a strong system of patent protection for its inventors, small businesses and industries. Consequently, it is more important now than ever that we adopt certain reforms that will ensure that America maintains its position as the world leader in the production of intellectual property.” They are right! We must “ensure that America maintains its position as the world leader in the production of intellectual property.” Unfortunately, the changes they are pushing are guaranteed to destroy the only Patent System that that will “ensure” it. Bad news!

These, foreign designed, so called, “reforms” are meant turn our “envy of the rest of the world system” into a dying shadow of itself, and a competitor of no one!.

Why don’t we ask them -- just what OTHER country “has a strong system of patent protections for its inventors, small business and industries?? There are none!. Maybe the country they are talking about is “Somewhere Over The Rainbow” with the other “Pie in the Sky” promises this letter to Mr. Hyde talks about. It certainly did not tell the truth when it said “America no longer stands alone ...strong system of patent protection ... for its inventors ..” The truth is --America proudly does stand alone and above the crowd of copyists. We are strong enough to stand alone -- nurturing and protecting our creators, inventors and small businesses from the ravages of the monster corporations. Since we really “are the largest producer of intellectual property” why would we want to dump the very system that made us the “largest producer?” Wouldn’t that be irrational? What do you think:?

Our patent system is one of the strongest reasons for America’s success. And that is the reason that the foreign sponsors of this abominable snow job -- are spending Millions of dollars to shove their crippled foreign patent system down the throats of an unsuspecting American people. Reminds one of 1941, doesn’t it?

What’s Wrong With the Japanese Patent System?
The Japanese patent system is probably fine for the Japanese. It fits their culture by intentionally being designed NOT to protect inventors and small businesses -- just the largest corporations. Japan was and still is a feudal and hierarchical society. It is run from the top down. That’s why they “Lay Open” patents in 18 months. It’s so the BIG guys can “share” whatever anyone else creates. With the biggest getting the biggest share. But Japan’s system is bad news for America, where people really do have a chance to rise from the bottom -- often by means of their patents.

And inventors I have met in Germany, France and Italy fare little better than their abused brothers in Japan. So once again, I have to ask; “What wonderful, beneficent patent systems are the sponsors of S.23 talking about? Tell me, I’d love to know. Maybe all of us American Inventors will have to move there, when our patent system is flushed down the toilet.

America’s Patents Will Suffer Even Greater Harm from “Early” Publication Because We are Required to Show EVERYTHING about the Invention When WE File
Japan’s Laid Open Patents, as horrible as they are, reveal NOTHING, compared to the would-be “new and improved” American Copy of the Japanese system. In Japan, although they expose the naked bodies of their (and our) Japanese filed but unissued patents -- they don’t require that the really, really, private parts -- the guts and claims of the patents be shown.

But -- if S.23 passes and actually becomes our new “Japanese Clone” patent system -- our unborn fetuses of patent applications will be laid out on the Internet for all the world to see and abuse and dismember and steal from -- claims and all. American Patents -- unlike those from the rest of the world -- are required to reveal “The Best Mode” and disclose sufficient information and detail “to allow a person skilled in the art,” to be able to understand and make the device that is the subject of the patent. This puts American Inventors and Inventions at far greater risk than those of any other country. But not to worry -- I was told by the main author of this bill, when I questioned him on a radio talk show, that this will be “great for American Inventors.” Unfortunately he has yet to tell me how this is possible.

On a recent radio talk show, I called and politely suggested to Mr. Moorhead, that his desire to change our entire WELL WORKING patent system -- all at once -- with no chance for first testing each part -- would, in my view, be a HUGE mistake.

It would be like taking Air Force One, and ripping it apart from nose to tail -- tearing off its wings, engines, electronics, and controls. Then hiring unskilled labor to kluge it back together using untested and ill fitting parts and connected every which-way, and expecting it to fly.

When I asked Mr. Moorhead why he was trying to force a similarly kluged and untested patent system on America, he replied that he thought that there were other countries that had some experience with something like this new patent system. His vague answer did not give me a warm and safe feeling.

Inventors and their inventions -- the basis of America’s Success
Just think of the industries our inventors created. To name just a few from old to new: -- the reaper and sewing machine and cotton gin and light bulb and telephone and phonograph and motion pictures and airplane and transistor and FM Radio and Television and Xerography and the integrated circuit, which gave us our huge computer industry and the exploding Internet and our vaunted BIOTECH INDUSTRY!.

Virtually all of these came from independent American inventors and/or small startup companies. And from these startups came the huge industries we have today. As my father-in-law, the dairy farmer says; “If you don’t have seed corn you can’t grow corn to feed your cows.” I wish I had said that. But I can say; If you don’t have Inventors, you can’t grow any new job producing industries. None!
To make it even more perfectly clear -- America is being told to give all of our creative seed corn to our competitors -- for nothing in return! Bad deal!


S.23 is specifically designed to eliminate America’s successful Patent System and Inventors
If there really are American companies the authors say are on “their” side, I am sure, that except for a foolish few, are NOT the creators of the newest technology. They are multinational ogres attempting, like the Japanese, to STOP our greatest talent -- our technological creativity -- so they can continue to sell their me-too, trivial, shiny, do-nothing, “improvements.” THAT is what is causing these companies to “encourage” the authors to push (pander?) for such destructive legislation.

Why So Fast and Why So Soon?
So here’s the reason there is such a rush to crush the patent system -- it is, as Machiavelli said, “Do your evil quickly “ -- so as to attack your victims before they know what’s happening. The victims in this case, happen to be every American inventor and all the small businesses and workers that will be out of work when American Technological Leadership stumbles to a stop. This killer bill will guarantee only one thing -- the death of our greatest asset -- our ability to invent and create new industries and jobs from our inventions.

A Modest Proposal
I will conclude with a modest proposal. The Japanese consistently tell us that the reason we can’t sell our cars in Japan is that our steering wheel is on the wrong side after all, they do drive on the Left side of the road, like the British.. So, if the Japanese way of doing things is really so much better than our way (cars and TVs and patents) why don’t we add an amendment to S.23 requiring that America will do things the Japanese way and WE WILL DRIVE ON THE LEFT SIDE OF THE ROAD! Let that start AT THE SAME INSTANT WE GIVE UP OUR AMERICAN PATENT SYSTEM. That will be less evil than instantly changing our Patent System. Sounds fair to me. What do you think?

It is crystal clear, that the people funding this transparent scam, are using S.23 as a stepping stone to the total elimination of the American Patent System. Registration perhaps?
For further information contact: George Margolin --- V.P. Professional Inventors Alliance

Forbes says: China Wants to Buy Facebook

China Wants to Buy Facebook
WHAT A SURPRISE!

On Thursday, Business Insider reported that China is trying to buy “a huge chunk” of Facebook. According to the business news website, Beijing approached a fund that buys stock from former Facebook employees to see if it could assemble a stake large enough “to matter.” Moreover, Citibank is rumored to be ……AND CONGRESS IS NOW – JULY 4TH 2011 – PUSHING TO SELL THEM OUR ENTIRE PATENT SYSTEM

IS SELLING OUR FUTURE TO CHINA GOOD FOR AMERCA?