Facebook (FB)’s Next Revenue Idea Shines a Spotlight on Patent Problems

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We’re walking down a very dangerous road here. Somebody needs to put a stop to gratuitous patent grants before true innovation becomes impossible.

Patents are supposed to reward inventors of original ideas. Patents like this one only rewards the first person or company to file a claim for patently obvious ideas.

For another example of misguided patent grants, consider Vringo, Inc. (NYSEAMEX:VRNG) (NYSEMKT:VRNG). The company owns patents on such brain-bending innovations as placing ads next to search results. Business value: billions of dollars. Innovation value: zero. Any fifth-grader could come up with the same idea independently, but Vringo’s predecessors happened to file the first patent claim.

So a completely obvious idea becomes a bludgeon in worldwide patent lawsuits. Facebook Inc (NASDAQ:FB) is just looking for another mallet, if only to beat back baseless suits from whoever actually tried to patent this plain old business process first.

The article Facebook’s Next Revenue Idea Shines a Spotlight on Patent Problems originally appeared on Fool.com and is written by Anders Bylund.

Fool contributor Anders Bylund holds no position in any company mentioned. Check out Anders’ bio and holdings or follow him on Twitter and Google+. The Motley Fool owns shares of Apple and Facebook. The Fool has bought calls on Facebook. Motley Fool newsletter services have recommended buying shares of Facebook and Apple. Motley Fool newsletter services have recommended creating a covered bull call spread position in Apple.

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