[jessriedel]

> In this case, it seems like Apple and Masimo could have worked together to deliver a stellar product that promoted both inventor rights and benefited the public. Instead, both companies are suffering, and the public loses access to a technology.

I don't think the existence of rare costly outcomes is very good evidence that anything is wrong with the system.

Among high-level players, the vast majority of poker hands ends with an "agreement" about who probably has the strongest hand (i.e, all but one player folds and there's a modest transfer of funds to that player). But in order for that system to work, there has to be a credible threat of a showdown which, from an economic perspective considering just that single hand, is inefficient.

Likewise, the patent system might be good or bad overall, but occasional occurance of costly outcomes doesn't tell us much.