Couldn't the tech giants cooperate and introduce a system that benefits the top 10% and exclude the long tail of smaller companies? That could be even worse.
I'd argue that the existing system does just that.
The big boys have portfolios of patents that they fling at each other until some sort of cross-licensing deal is reached, whilst smaller players just have to cross their fingers and hope that nobody decides to tax them too extravagantly.
I omit the possibility of creating non-infringing products simply because it's virtually impossible to bring any meaningful product to market without infringing on somebody's overly broad patent.
That's already happening. Google, MS, Apple, IBM, Intel, AMD/ATI, nVidia, AT&T and a few others already have cross-licensing deals essentially between everyone and everyone. It's just that HTC and Samsung are not part of _this_ cartel.
That's essentially the situation in hardware. All the big players have portfolios of patents which they swap in cross-licensing deals. As a newcomer you have no chance of breaking into the business since you don't have a portfolio of your own - you'd get sued out of business.
The big boys have portfolios of patents that they fling at each other until some sort of cross-licensing deal is reached, whilst smaller players just have to cross their fingers and hope that nobody decides to tax them too extravagantly.
I omit the possibility of creating non-infringing products simply because it's virtually impossible to bring any meaningful product to market without infringing on somebody's overly broad patent.