The clash between Malikie Innovations and Bitcoin miners exemplifies a classic conflict between open innovation and legacy fiat intellectual property rights.
From Patently-O. Typical. The state protects its contractors from patent infringement liability and its only liability is to pay compensation. It cannot be enjoined. See 28 U.S. Code § 1498. Of course the whole thing makes no sense: the FedGov grants patents to applicants; this impedes innovation and drives up prices for consumers; and if the patentee sues the FedGov it harms the taxpayers again by printing money and giving it to the patentee.
The War Industry (formerly Defense) heavily invests in new technology and patents. But, we see very few patent infringement lawsuits. A key reason is 28 U.S.C. § 1498. That statute channels patent infringement claims involving government-authorized work away from private defendants and into the U.S. Court of Federal Claims, with the United States as the sole defendant (and a reasonable royalty as the only remedy). For government contractors and subcontractors, § 1498 operates as a powerful shield: if the infringing activity was performed “for the Government” and “with the authorization or consent of the Government,” the patent holder’s only remedy is a compensation action against the United States. The contractor walks free. This design reflects a deliberate policy choice. The government pays heavily for technology development with taxpayer dollars and, in exchange, retains control as the key point person – and it allows the administration to resolve patent disputes as it sees fit.
Of course, not online. I would say ironically, but unforunately it’s not ironic anymore; it’s routine and pathetic: a paper by a patent skeptic reviewing the work of an IP promoter, but paywalled and hidden away due to copyright. Copyright is censorship at work–and preventing the spread of criticism of copyright and patent! Grok’s summary: [continue reading…]
See Marcus Willaschek, “‘This Is Mine’: On Intellectual and Other Property,” in Kant: A Revolution in Thinking, Peter Lewis, trans. (Cambridge, Massachusetts and London, England: The Belknap Press of Harvard University Press, 2025) (sample; Scribd).
Note the opening quote to ch. 12: “The value of money is . . . only indirect. One cannot enjoy money itself or make immediate use of it in any way. Yet it is still a means which, among all things, has the greatest usefulness.”1[continue reading…]
[“In the case of Kant’s principal work, the Critique of Pure Reason, following the common practice in the literature on Kant, references are given in the form “A . . . ,” “B . . . ,” and “A . . . / B . . .” (e.g., A xii; B406; A365/B390). Here, “A” refers to the page numbers of the first edition of the Critique, published in 1781, while “B” references the second edition, of 1787.”] Ak. 6:287, The Metaphysics of Morals (1797), in Kant, Practical Philosophy, ed. and trans. Mary J. Gregor, CWK [The Cambridge Edition of the Works of Immanuel Kant in Translation, 16 vols., Paul Guyer and Allen W. Wood, general eds. (Cambridge: Cambridge University Press, 1992–2016)] (1996), 435. [↩]
I used to think Intellectual Property (IP) was valid. Why wouldn’t I? After all, my business school insisted patents were vitally necessary to incentivize production and innovation. Even Ayn Rand, my gateway to libertarianism, insisted IP was a moral necessity, saying:
“Patents and copyrights are the legal implementation of the base of all property rights: a man’s right to the product of his mind.”
Ash Navabi, former GMU econ grad student (see previous podcast discussion with him),1 now a law student at Thomas Jefferson School of Law, sent me this presentation he gave in his copyright class: “This Week in Copyright: Copywrong? The Legal & Economic Case for the Abolition of Intellectual Property” (pptx; pdf). Heroic!
In a recent podcast episode, Greenland, Guns, and Money, Richard Epstein predicts Trump’s use of tariffs under IEEPA might be nixed by the Supreme Court, and that he has suggested that if this happens he will find some other way to do it, but it’s not clear what.
Shownotes:President Trump and Commerce Secretary Howard Lutnick pride themselves on being dealmakers and on making the kind of unconventional deals for America no one else could have gotten done. Gil Hyatt is offering them one that sounds like a no-brainer. However, the question remains whether that dealmaking reputation is enough to overcome thirty years of inertia from prior administrations focused on keeping any more of Hyatt’s patents from ever issuing.Hyatt is proposing to donate his foundational AI patents to the Pioneering AI Foundation, designed, in his telling, to give the U.S. government a new kind of leverage at the International Trade Commission (ITC) to use in negotiations with foreign countries. The concept aligns with the administration’s priorities and arrives at a moment when the administration’s biggest leverage tool — tariffs — has just been narrowed by the Supreme Court’s February ruling.When Hyatt was last on Clause 8 in 2019, he told the story of his role pioneering the microprocessor and the substantial licensing program he built without ever going to court. But much of that conversation was about what came next.
In the mid-1990s, amid scrutiny of so-called “submarine patents,” the USPTO created what was later revealed as the SAWS program, which flagged applications from Hyatt and fellow independent inventor Jerome Lemelson and, in effect, kept any more of their applications from issuing as patents. Hyatt later won a unanimous Supreme Court decision against the USPTO in 2012 in litigation arising from that long-running dispute. But that did not lead to any broader resolution. The government kept fighting. More than a decade later, the battle still continues, with another cert petition now pending before the Supreme Court.
None of that makes Hyatt an obvious candidate to be offering the U.S. government anything, let alone a gift.
And yet that is exactly how he frames it: a gift to America, timed to the country’s 250th birthday. On the episode, Hyatt says the administration has “been considering our project for over a year now,” though he is still waiting to see whether it will move forward. As he tells it, the decision is now theirs.
A Strategic Tool
Hyatt explains that the foundation’s mission is to use intellectual property to “level the playing field” for American workers and American interests. Beyond providing leverage in negotiations, he describes a model in which market access could be conditioned on whether foreign manufacturers meet American standards for labor, human rights, and environmental protections — in other words, whether they are willing to play by rules comparable to those imposed on American companies.
Why Give It Away?
Asked why he would hand this to the same government that spent decades blocking his patents, Hyatt doesn’t hesitate:
“America is the dream of immigrants. My parents were legal immigrants. They came over legally, over 100 years ago. And America gave us the dream life… I want to repay America.”
Can this administration finally get it done?
The offer is on the table. It aligns with the administration’s priorities just as its biggest leverage tool has been constrained.
The question isn’t whether this administration will entertain it. By Hyatt’s account, they have been — for over a year. The real question is whether a dealmaker reputation is enough to close a deal no other administration has come close to making in thirty years.
Hyatt says he is ready to sign.
Will America accept the gift?
The episode covers:
00:23 — the ongoing battle with the USPTO
02:44 — the Pioneering AI Foundation
05:35 — using the ITC and trade agreements as leverage
07:11 — human rights and labor unions: leveling the global playing field
10:24 — AI in the classroom: the “super headstart” for children
12:35 — relieving drudgery: AI as a catalyst for creative thinking
14:27 — addressing skepticism: motives and financials
16:16 — repaying the dream: the legacy of immigrant parents
17:34 — advice for the next generation of inventors
18:22 — final thoughts: destiny and helping America [↩]
I often rail against IP because it impedes innovation.1 As I wrote in one post,
Patent law distorts and impedes innovation. It makes us all poorer. There is no evidence that it does what the retarded Founders thought it would do—promote the progress of the useful arts (inventions)
… Patent law reduces innovation and impoverishes the human race. As I wrote elsewhere: [continue reading…]
I woke up this morning to my daily NY Times news brief email, only to find embedded therein this propaganda, the “Stealing Isn’t Innovation” campaign, which is “a project of the Human Artistry Campaign, a global coalition of more than 180 groups around the world supporting responsible, ethical AI.” The letter’s A and I in the slogan are highlighted in blue to drive the point home—this is about killing AI. It’s a group of artists and other copyright whores who want to shakedown AI tech companies with the threat of killing it with copyright. [continue reading…]
As a friend told me, “I saw this article, and thought you might either be amused or horrified as congress attempts to use copyright law to solve problems caused by … copyright law.”
Patent holders just hate any challenges to their state-granted patent monopolies.1 They want their IP rights to be treated like “property rights,”2 and never challenged, either administratively or in court, so that they can be “relied upon”3 and serve as more effective weapons to threaten and extort their victims.4 They also hate legislative proposals that would make it more difficult to engage in patent trolling,5 such as The Litigation Transparency Act of 20256 or the more recent bill proposed by Representative Daryl Issa, The Protecting Third Party Litigation Funding from Abuse Act.7[continue reading…]
US Inventor, INVENTOR RIGHTS RESOLUTION, which, in crayon, writes “The USPTO MUST NOT REVIEW AN ISSUED PATENT WITHOUT CONSENT OF THE INVENTOR.” [↩]
The Center for the Study of Innovative Freedom (C4SIF) is dedicated to building public awareness of the manner in which so-called “intellectual property” (IP) laws and policies impede innovation, creativity, communication, learning, knowledge, emulation, and information sharing. We are for property rights, free markets, competition, commerce, cooperation, and the voluntary sharing of knowledge, and oppose IP laws, which systematically impede or hamper innovation. IP law should be completely and immediately abolished.
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