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"The breadth of business methods, their omnipresence in our society, and their potential

vagueness also invite a particularly pernicious use of patents that we have long criticized...

Patent holders may be able to use it to threaten litigation and to bully competitors, especially

those that cannot bear the costs of a drawn out, fact-intensive patent litigation... Of course,

patents always serve as a barrier to competition for the type of subject matter that is

patented. But patents on business methods are patents on business itself. Therefore, unlike

virtually every other category of patents, they are by their very nature likely to depress the

dynamism of the marketplace."
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In the United States, software patents have been granted since the 1980s. They've had some

disruptive effects: the patent on the Lempel-Ziv-Welch, or LZW, compression algorithm used in

GIF images forced the creation of the alternative patent-free PNG format. The patent on MP3

compression technology, which ensnared Microsoft, led to the patent-free Ogg Vorbis audio

format.

Free-software aficionados have long worried that their projects could be shuttered because of

patent threats from companies with the means and motive to litigate. Microsoft said in 2007, for

instance, that Linux violates 235 of its patents.

And the End Software Patents coalition estimates that $11.4 billion is wasted every year on

litigation over software patents, with 55 software patent lawsuits filed every week.

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