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Re: Points Well Taken
Posted by Reality (more from Reality) on Sun, 9 Jan 2011 18:53:45
In Reply to: Re: Points Well Taken, James, Sun, 9 Jan 2011 18:14:36
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It takes a long time, several years, to develop a new generation of processors. There are usually two generations in development at the same time, at different stages of development; i.e. N+2 generation is in development before N+1 generation on the market, perhaps as early as N+1 is half way through development. So the patents related to N+2 are usually taken out several years before real products from N+2 are on the market.
Cross-licensing made very good sense because by the time market data is aggregated and published to determine whether a new product is a success or not, the original innovator would be so far ahead in terms of production that copycats would only be selling at commodidized prices instead of the high-premium prices that the first-mover is able to command in the first year or two of production. The more complicated the new innovation is, the more difficult it is for the copycat to copy and catch up; meanwhile, the latent threat of another copycat and expanding capacity of the innovator can put a real damper on any investing appetite into the copycat. IMHO, simple innovations that can be copied easily are usually either border-line intuitively obvious (to practitioners of the trade) or "unique" only in the absence of sufficiently exhaustive prior art search.
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